Two Overarching Pricing Strategies
Before we get started, it's crucial to understand the two primary pricing strategies at your disposal:
AI Price - The AI’s recommendations take the lead, providing an automated and streamlined pricing process. The cells coloured in white in the Pricing table are following this strategy.
Influenced Price - Influencing the AI pricing strategy is as simple as making a manual price change to your preferred price point, fostering a collaborative approach between your strategy and the AI. Depending on your manual price changes, the AI adapts its strategy. This is ideal when you are new to the system or not ready to go full on automation. The cells in the table with turquoise and violet shading are following this strategy. More specifically:
light turquoise when the price applied is up to 20% lower than the current one
dark turquoise when the price applied is more than 20% lower
light violet when the price applied is up to 20% higher than the current one
dark violet when the price applied is more than 20% higher
User Manual Changes on the Influenced Price Strategy
The impact of this influence depends on various factors such as the magnitude of the manual price change from the original pricing strategy, the direction of the manual price change, increase or decrease, as well as the lead time within the booking window. Depending on this, the AI will either explore price points in the future more or less aggressively in response to demand or the lack thereof.
More Aggressive Strategy
If you manually increase the price, you influence the AI moving forward to be more aggressive when it comes to price changes. You will generally get bolder pricing adjustments for upcoming nights, and the AI will explore price points in the future more or less aggressively in response to demand or the lack thereof.
As you can see from the chart in the Quick View, the AI Price line will start exploring more price points, recommending price jumps that are generally higher.
Less Aggressive Strategy
If you make a price decrease, you influence the AI to adopt a less aggressive pricing strategy. You're influencing it in such a way that it will recommend more conservative price changes moving forward because it has received the signal to slow down or dampen a bit.
The system will recommend prices that are generally lower, exploring a more restrained range of options. You will get less aggressive pricing adjustments for upcoming nights, and we’ll carry out a more narrow exploration of price ranges.