Understanding Price Labs Performance Metrics

Hello, everyone. This is Karishma. If you're watching this video, it means that you've already completed the five basic setup steps: adding your listings, setting your base price, setting your minimum price, setting your minimum stay restrictions, and syncing your listings. Congratulations on completing your setup! This video will guide you through the next steps to understand if Price Labs is working well for you.

Importance of Base Price

The foundation of your pricing strategy is your base price. It acts as the anchor for all your prices, adjustments, discounts, and premiums. Setting your base price too high could result in fewer bookings, while setting it too low might mean leaving money on the table. It's crucial to get the base price right.

Performance Metrics

You can view all your performance metrics on your pricing dashboard. Navigate to Dynamic Pricing and then Pricing Dashboard to see all your listings and their performance metrics.

1. Total Occupancy

• Occupancy is the number of days you're booked for in the next 7, 30, and 60 days.

• To understand the metric, click on the blue icon for more information.

• Compare your listing's occupancy with the market's performance.

• If your occupancy is lower than the market, check if your base price is too high or if demand is low.

2. Average Daily Rate (ADR)

• To add ADR to your dashboard, click on Add Metrics and select ADR.

• Compare your current ADR with the same time last year (STLY).

• If your ADR is lower than last year, revisit your base and minimum prices.

3. Market Penetration Index (MPI)

• MPI is your listing's occupancy divided by the market's occupancy.

• If MPI is less than 1, your listing is underperforming compared to the market.

• If MPI is more than 2, consider increasing your base price incrementally.

4. Minimum Price Hitting Dates

• This metric shows how many of your prices for the next 21 days are hitting the minimum price.

• If many dates hit the minimum price, consider lowering your minimum price or increasing your base price.

These metrics help ensure your listing is in good shape and performing well. If you have any questions, please reach out to us at support@pricelabs.co. Thank you and have a good day!