Senior living is behind the times when it comes to dynamic pricing models, says Holiday Retirement CEO Kai Hsaio.
The industry standard for hospitality and multifamily, and even for airlines and retail, has long been to offer multiple, variable price points based on date, time, and market factors.
Now that Holiday is catching up, their algorithms set rates based on seasonality and demand forecasts, square footage, balconies and windows, even average rents in the surrounding area and income levels of local households.
Hsaio believes the antiquated practice of offering discounts is a slippery slope that a proprietary system can circumvent. However, it takes a fairly seismic sales and technological shift to begin implementing a dynamic pricing system.
Strategic rollout and sales team enthusiasm were two crucial components to Holiday’s success with their new plan. Since dynamic pricing is the norm in so many other industries, it seemed superfluous to market the change specifically, and acceptance by new and existing customers is reportedly fairly seamless.
Source: Senior Housing News: Why Holiday Sees Dynamic Pricing as the Future of Senior Living Sales
