Want to collaborate on building a STR GPT?

Question

Hello world!

This week OpenAI announced the launch of its custom GPT functionality. I started one to help STR hosts (free to use):

ChatGPT - STR Property Optimizer (openai.com)

The focus is on discount pricing strategies right now. I have trained it to take a screenshot of your Airbnb calendar by property and upload it to the GPT. Then follow along and see what happens

If you are interested, please take a look and share your feedback with me.  I will continue to add constraints and information to refine the model so that it offers the best advice possible.

Ian Tyndall · Answer

Here is what I uploaded, and this is my conversation:

STR Property Optimizer

Based on the screenshot provided of your Airbnb listing's pricing settings for September 2023, here are the descriptive statistics:

• The base price per night is set at $209.
• Custom weekend price is $240.
• The majority of the days are priced at $130, which is significantly lower than the base price.
• Prices increase in the second half of the month, peaking at $325 for the 27th.
• The weekly discount is 15%, with a weekly average of $1,296.
• The monthly discount is 21%, with a monthly average of $5,149.
• There is a notable booking from the 19th to the 26th totaling $1,775.10.

Before proceeding, would you like to adjust any of these pricing settings or is there any other information you wish to update or add? Additionally, could you please provide turnover cost information such as consumables, cleaning fees, laundry expenses, wear and tear, and minor breakage costs? This information will be essential to optimize your revenue taking into account the profitability offset by turnovers.

I told it turnovers total cost is $75 -

Youuse that amount for all costs of a turnover

STR Property Optimizer

Great, we will proceed with a total turnover cost of $75, which encompasses consumables, cleaning, laundry, wear and tear, and minor breakage costs.

Now, let's analyze your current booking data and turnover costs to optimize your pricing strategy:

• Turnover Analysis: With a turnover cost of $75, it's vital to balance the frequency of bookings with the associated costs. Shorter stays may increase turnover costs relative to revenue, so we might consider encouraging longer bookings through discounts or minimum stay requirements.
• Pricing Adjustments: Your current lowest price is $130, which is well below the base price of $209. Given the turnover cost, it may be beneficial to increase the lower end of your pricing on less popular days to ensure profitability after turnover costs are accounted for.
• Discounts: You're offering a 15% weekly discount and a 21% monthly discount. Given the turnover cost savings with longer stays, these discounts can be very attractive, but we should ensure they are set at levels that maximize occupancy without sacrificing profitability.
• Seasonal Trends: Review the pricing for the second half of September, which shows a significant increase. Consider local events, holidays, or seasonal demand to ensure these prices are competitive and reflect the value of the stay during these periods.
• Occupancy Optimization: Aim to minimize unbooked days, especially consecutive unbooked days that do not save on turnover costs. This may involve dynamic pricing strategies to attract last-minute bookings.

Youwhat should my discounts be?

STR Property Optimizer

Determining the optimal discount rates involves considering the balance between attracting guests with competitive pricing and maintaining profitability. Given your turnover cost of $75, which we are assuming applies to all aspects of preparing your rental for the next guests, here are some considerations for setting your weekly and monthly discounts:

• Break-Even Analysis:You need to ensure that the discounted price covers your costs. For example, if your average nightly rate is $209 and you have a $75 turnover cost, the weekly rate without discounts for 7 nights would be $1,463. To break even on a weekly rental after a single turnover, you would need to charge at least $1,538.
• You need to ensure that the discounted price covers your costs. For example, if your average nightly rate is $209 and you have a $75 turnover cost, the weekly rate without discounts for 7 nights would be $1,463. To break even on a weekly rental after a single turnover, you would need to charge at least $1,538.
• Competitor Benchmarking:Research what discounts competitors in your area are offering for similar properties. If they are offering a 10% weekly discount and a 20% monthly discount, you would need to consider whether you can offer a better value or if you need to match these rates.
• Research what discounts competitors in your area are offering for similar properties. If they are offering a 10% weekly discount and a 20% monthly discount, you would need to consider whether you can offer a better value or if you need to match these rates.
• Occupancy Goals:If your occupancy is high and you're rarely experiencing unbooked days, you might not need to offer large discounts. Conversely, if you have many unbooked days, especially during the week, a higher weekly discount might make sense to incentivize longer stays.
• If your occupancy is high and you're rarely experiencing unbooked days, you might not need to offer large discounts. Conversely, if you have many unbooked days, especially during the week, a higher weekly discount might make sense to incentivize longer stays.
• Seasonal Demand Fluctuations:During peak seasons, you may not need to offer large discounts due to higher demand. During off-peak times, higher discounts might be necessary to maintain occupancy.
• During peak seasons, you may not need to offer large discounts due to higher demand. During off-peak times, higher discounts might be necessary to maintain occupancy.

• You need to ensure that the discounted price covers your costs. For example, if your average nightly rate is $209 and you have a $75 turnover cost, the weekly rate without discounts for 7 nights would be $1,463. To break even on a weekly rental after a single turnover, you would need to charge at least $1,538.

• Research what discounts competitors in your area are offering for similar properties. If they are offering a 10% weekly discount and a 20% monthly discount, you would need to consider whether you can offer a better value or if you need to match these rates.

• If your occupancy is high and you're rarely experiencing unbooked days, you might not need to offer large discounts. Conversely, if you have many unbooked days, especially during the week, a higher weekly discount might make sense to incentivize longer stays.

• During peak seasons, you may not need to offer large discounts due to higher demand. During off-peak times, higher discounts might be necessary to maintain occupancy.

With these factors in mind, here's a suggested approach:

• Weekly Discount: Since longer stays save you from incurring multiple turnover costs within a week, you could potentially offer a discount that's enticing but still profitable. Considering a break-even point and the potential for saving on turnover costs, a discount range of 10-20% could be appropriate.
• Monthly Discount: Longer stays are even more beneficial in terms of reducing turnover frequency. Therefore, a discount of 15-25% could be justifiable, depending on the typical length of stay for guests in your area and your desired occupancy rates.

Ian Tyndall · Answer

No, not yet. I could set it up where you insert the links of competitors and have it check on them and make recommendations.

The way it is currently configured is for one specific use case I am working on which is “what is the best weekly and monthly discount that maximizes revenue?”

I will upload my results so you can see

John Underwood · Answer

Interesting.

So this looks at your pricing and compares to other similar properties and gives you recommendations?