Peak Pricing allows hosts to adjust their car rental prices based on demand, specifically for certain days of the week. The goal is to optimize earnings by increasing the price on days with higher demand. Drive lah offers guidance to ensure that hosts can use peak pricing effectively without negatively affecting their bookings.
Who Can Use Peak Pricing?
This feature is available for all hosts who want to set higher prices for certain days. You can control whether or not you allow peak pricing through the Key Rules section in your listing settings.
How to Set Peak Pricing
Go to your car listing.
Navigate to the Key Rules section.
Select the option to activate Peak Pricing.
Specify the number of days in a week you want to apply Peak Pricing (0 to 2 days maximum).
Set the Peak Price, ensuring it’s no more than 20% above your regular price. We recommend keeping it around 12% to maximize demand.
Example:
Regular Price: $40
Recommended Peak Price (12% increase): $45
Maximum Peak Price: $48 (20% increase)
Why is Peak Pricing Important?
Peak Pricing helps hosts maximize earnings by adjusting rental prices based on demand. Through our data analysis, we’ve found that guests are willing to pay up to 12% more on weekends for rentals, which helps hosts earn more while still keeping prices competitive.
Why These Changes?
The following requirements are in place to help drive demand for your listings while maintaining fair pricing. We’ve found that overusing Peak Pricing (e.g., applying it for more than two days per week) significantly reduces demand. By limiting it to no more than 2 days, hosts can ensure higher booking rates while still maximizing earnings.
Peak Pricing Guidelines
Maximum Peak Days:
Limit Peak Pricing to 0 to 2 days per week.
Public Holidays are excluded from the 2-day maximum.
Peak Price Limit:
Peak Price should be no more than 20% higher than your Regular Price.
We recommend setting it at 12% for optimal demand.
Why the Limit on Peak Pricing?
Too many days of Peak Pricing may turn away potential guests. We’ve found that applying it for more than two days in a week negatively affects demand.
Our goal is to help you attract more guests while maximizing your earnings.
What Happens if You Don’t Follow the Peak Pricing Guidelines?
If you set peak pricing for more than 2 days or exceed the 20% price increase limit, it may lead to reduced demand for your vehicle. If this happens, you may notice fewer bookings, as guests prefer listings with reasonable pricing.
FAQs
Can I apply Peak Pricing to public holidays?
No, public holidays are excluded from the 2-day maximum peak pricing. You can still apply peak pricing to holidays, but it won’t count as one of your two designated peak days.
What if I want to change the Peak Price?
You can always adjust the peak price by going back to the Key Rules section of your listing. Just make sure the increase doesn’t exceed the 20% limit.
How do I know if my Peak Pricing is too high?
We recommend keeping your peak pricing increase at around 12%. This provides a good balance between maximizing earnings and maintaining high demand. If you notice fewer bookings, consider reducing the price increase.