We can divide the strategy created by the Smartpricing algorithm into two main areas: the first is static and consists of the "Starting Price," while the second is dynamic and consists of the adjustments.
For generating the base price, our algorithm primarily uses two data sources: historical and future price trends of representative properties in your market area, and booking data from your PMS/channel manager. Market data is used to accurately detect the seasonality that characterizes your area, while the bookings from your management system/channel manager are processed to determine the average selling price of your rooms or apartments.
Starting from this base price, the algorithm dynamically adjusts the proposed rate to maximize the strategy's yield. To achieve this, it considers various parameters such as: the day of the week, scheduled events, holidays, proximity to check-in, your property's occupancy rate, and the difference between this and the market demand pressure.