Anyone Figured Out How to Turn Off Dynamic Pricing? It’s Affecting the Entire Fleet

Why Dynamic Pricing is Causing Concern for Hosts

Dynamic pricing has become an essential part of many modern car rental platforms. While the idea behind dynamic pricing is to adjust rates based on demand, it has introduced a variety of concerns for hosts. These concerns stem from sudden, unpredictable price drops, the complexity of calendar management, and the growing frustration among guests who find themselves caught in these price fluctuations. In this blog, we will dive deep into the impact of dynamic pricing on hosts, how it affects their ability to run a profitable business, and the steps you can take to regain control over your pricing.

Unpredictable Adjustments: A Major Concern for Hosts

Sudden and Steep Price Drops

Dynamic pricing is designed to automatically adjust rates based on market demand. However, the unpredictability of these adjustments is often cited as a major issue. For example, a host might list their vehicle at a set price, only for the platform to lower the rate by 40 50% unexpectedly. This can occur without any prior warning, causing a significant drop in potential revenue.

Imagine you list your vehicle at $100 per day. Suddenly, due to fluctuations in demand, the system drops the price to $50 a day. Not only does this negatively affect your daily revenue, but it can also damage your business’s long term profitability. Hosts are left scrambling to make up the difference, and many feel powerless to control their pricing strategy.

This unpredictability doesn’t just affect pricing, but also disrupts the overall strategy that hosts rely on to make informed decisions about their fleet. The inconsistency creates confusion and makes it harder for hosts to set long term financial goals.

How This Affects Profit Margins

Hosts rely on a steady stream of income from their vehicles. Sudden price drops put this revenue at risk, especially for high end cars, where every booking represents a significant portion of the car’s value. For luxury vehicles, the risk of depreciation is particularly concerning. These cars are more sensitive to price fluctuations, and when rented out at lower than market rates, they may lose their value more rapidly.

This can be especially damaging for hosts who are trying to build a sustainable business. In the worst cases, hosts may find themselves unable to cover essential operational costs, such as maintenance, insurance, and cleaning, let alone turning a profit.

Complex Calendar Management: A Time Consuming Challenge

Glitchy or Slow Pricing Tools

The integration of dynamic pricing tools into platforms like Turo has resulted in significant changes to how hosts manage their calendars. While the tools are intended to help hosts streamline pricing adjustments, they often come with performance issues that complicate the process further. Hosts have reported that the new system is glitchy, slow, and sometimes unreliable.

These performance issues mean that hosts must spend more time manually adjusting rates, often leading to frustration and wasted hours. If you are managing multiple vehicles, this becomes even more time consuming. With several cars on the platform, each requiring constant attention, the task of maintaining up to date and competitive pricing becomes a logistical nightmare.

Some hosts have even reported that they have to re enter their pricing manually on a daily basis, which takes up valuable time and distracts them from other critical tasks like customer service or maintaining their fleet.

The Manual Workaround: Is It Worth It?

For many hosts, reverting to manual price adjustments is the only viable solution. However, this creates an entirely new set of challenges. Manually adjusting prices is time consuming and doesn’t scale well, especially as the number of vehicles in the fleet grows. This manual process also introduces human error, and it can be challenging to keep up with price changes on a daily or weekly basis.

If you’re managing a larger fleet, the complexities multiply, making it even harder to stay on top of dynamic pricing adjustments. This shift toward manual updates leads to burnout for hosts who already have their hands full managing their vehicles and responding to guest inquiries.

Guest Expectations: Navigating the New Normal

The Challenges of Unexpected Bookings

Another downside of dynamic pricing is the way it impacts guest expectations. If a guest books a vehicle at a significantly lower price than usual, they may have unrealistic expectations about the quality or condition of the car. This can lead to dissatisfaction on both sides.

For instance, guests who book at a low rate may expect extra amenities, a pristine car, or even personalized customer service. When they don’t get what they expect, it often leads to negative reviews or cancellations, which can hurt the host’s reputation and decrease future bookings. This creates a vicious cycle, where hosts have to work harder to compensate for low rates and negative reviews.

Additionally, fluctuating prices make it difficult for guests to understand the true value of the vehicle. With prices jumping up and down, many guests may feel unsure about whether they’re getting a fair deal, leading to hesitation or confusion during the booking process.

Rush Cancellations and Their Impact

A major issue with dynamic pricing is the rise in rushed cancellations. If a guest books a vehicle at an unexpectedly low price and later realizes they are getting a better deal elsewhere, they may decide to cancel. These cancellations can occur without much notice, leaving hosts scrambling to fill the vacancy and risking lost revenue.

Rushed cancellations often come with penalties, but the damage extends beyond just the financials. A sudden cancellation leaves the host with fewer bookings, and it increases the likelihood of a vehicle being unavailable for other potential guests. If this trend continues, it may lead to long term issues for hosts trying to maintain steady business.

What Hosts Are Reporting

Massive Price Drops Affecting Entire Fleets

Reports from hosts reveal that some vehicles are being listed at rates far below their typical daily price. In certain cases, the vehicle is rented out for only a fraction of its true value, sometimes covering only basic expenses such as a car wash.

This is a particular concern for high value vehicles, where the risk of depreciation is heightened. When a luxury vehicle is rented out at a low price, it loses its value quickly, and hosts may end up in a financial hole, unable to recover from the loss.

Frustrations with Calendar Overhaul

Hosts have also expressed frustrations with the changes made to the calendar tool. These updates have caused delays, glitches, and significant slowdowns. As a result, hosts have to spend excessive time adjusting rates manually, which increases the likelihood of errors and missed opportunities. Some have also reported that the new tool is difficult to navigate, making it hard to implement changes quickly.

Luxury and Newer Models at Risk

Another significant risk is the impact on luxury or newer vehicles. These cars are often used as a selling point for hosts, but the dynamic pricing system makes them vulnerable to drastic price cuts. Hosts with high end vehicles in their fleet are especially concerned about how their cars are being priced, with some fearing the heavy depreciation of their vehicles due to prolonged price reductions.

How to Maintain Control Over Your Pricing

Manually Update Your Calendar

To regain control over pricing, it’s crucial for hosts to manually update their calendars. Here are a few tips on how to do this effectively:

• Bulk Selection: Select large date ranges at once and assign a fixed rate for those days. This can save time and reduce the need for frequent manual updates.
• Frequent Reviews: Check your calendar regularly to catch any unintended price reductions. Setting a weekly reminder can help you stay on top of pricing changes.

By taking a hands on approach to managing your calendar, you can ensure that your pricing remains consistent and competitive, even in the face of unpredictable fluctuations.

Complete Any Required System Updates

Before trying to make further adjustments to your pricing, it’s important to check whether the platform requires you to complete any updates. Turo and similar platforms may release new courses, quizzes, or policy acknowledgments that unlock new pricing options. Ensure that you have completed any necessary steps to regain full control over your pricing strategy.

Temporarily Unlist Your Vehicle

If your rates are consistently being undercut by the system, consider temporarily unlisting your vehicle. This gives you time to reassess the situation and prevents your vehicle from being booked at unacceptable rates.

Communicate with Turo Support

If dynamic pricing continues to be problematic, don’t hesitate to escalate the issue to Turo support. Share screen captures of your concerns and provide feedback. Turo may offer solutions, such as new features or tips for adjusting prices manually.

Tips for Protecting Your Fleet’s Value

Set a Minimum Acceptable Rate

To safeguard your fleet’s value, consider setting a minimum acceptable rate. This ensures that your rates never drop below a certain threshold, which covers your expenses and keeps your fleet profitable. It also gives you a buffer in case the system sets your rates too low.

Monitor Competitor Listings

Regularly monitor competitor listings to ensure your pricing remains competitive. If you notice that similar vehicles in your area are priced below market value, it may be worth unlisting your car temporarily until the system recalibrates. This can help protect your fleet from being pulled into an unsustainable pricing war.

Stay Flexible with Rates

For advanced users, staying flexible with daily rate changes can be key. By keeping an eye on market trends and adjusting your rates as necessary, you can avoid falling victim to low price fluctuations.

Mitigating Guest Confusion

Update Your Calendar Immediately

Once you notice a price drop, act fast. Make calendar corrections as soon as the platform allows to avoid any confusion for guests who might be expecting a consistent rate.

Proactive Messaging to Guests

Be proactive in your communication with guests. If you spot a booking at a drastically reduced price, reach out to the guest and explain the situation. Be transparent and respectful, and offer a solution if necessary. If needed, consider adjusting or canceling the booking.

Set Realistic Discounts

While offering discounts for multi day rentals can be beneficial, too many automatic discounts can quickly eat into your profits. Use discounts wisely, and always ensure that your pricing reflects the value of your vehicle.

Conclusion

Dynamic pricing has the potential to streamline revenue management, but it also presents significant challenges. By taking a hands on approach to calendar management, setting minimum rates, and maintaining constant communication with Turo support, hosts can minimize the impact of dynamic pricing. Although disabling dynamic pricing may not be a straightforward task, with vigilance and proactive strategies, you can continue to run a profitable and sustainable business.

FAQ

What is dynamic pricing, and why is it causing concern for hosts?
Dynamic pricing adjusts rates automatically based on demand. However, its unpredictable nature and drastic price drops have created financial instability for many hosts.

How can I manage my pricing effectively despite dynamic pricing?
By manually updating your calendar, setting a minimum rate, and staying on top of market trends, you can ensure that your pricing remains competitive and profitable.

What should I do if dynamic pricing sets my rate too low?
Consider temporarily unlisting your vehicle, manually adjusting the rate, or contacting Turo support for assistance in correcting the issue.

How can I protect my luxury vehicle from depreciation due to dynamic pricing?
Set a minimum rate that reflects the value of your car and monitor competitor pricing closely. This ensures that your vehicle isn’t rented out at a loss.

How do I handle a booking at an unexpectedly low price?
Communicate with the guest right away to explain the situation. You can adjust or cancel the booking if necessary, ensuring clear and respectful communication.