Starting Prices are the baseline for the software's price calculations; they remain constant over time and reflect the value of a specific type of room or apartment for different periods of the year. Based on these prices, the algorithm calculates the final prices by continuously adjusting their values up or down. Conceptually, they are very similar to an average selling price.
We have developed a dedicated algorithm that provides an intelligent initial suggestion for Starting Prices by analyzing the following elements:
- At least one year of historical and future booking data from the client's PMS, if available.
- Historical and future price trends from market data.
The suggested Starting Prices are more representative if the client’s system contains at least one year of representative bookings that reflect the current market value. For example, if recent renovations have been made to the property or rooms, past bookings might not be suitable as a reference for accurately determining the Starting Price value.
From this analysis, our algorithm extracts the seasonality of the area by breaking down price trend variations over the next 500 days into minimum periods of 7 days, also determining the value for each type of apartment/room.