Guesty’s pricing tools help you maximize income and make your listing stand out in booking channels. This article explains how these tools, including third-party tools, work together to optimize your rates.
These tools can also be utilized to control when a listing can be booked.
How pricing works in Guesty
Accommodation fare is the foundation of the total price for a reservation. By default, it is calculated based on the listing's base price, multiplied by the number of reserved dates. When you adjust this price using a pricing tool, it’s referred to as the "nightly rate" or "price per night" hereafter.
Each night can have a different price due to the adjustments made by various tools, except for weekly or monthly discounts, which apply to the overall price.
Note:
Adjustments can't reduce the price per night below $10 (or equivalent in other currencies); otherwise, they won't be applied.
Layering adjustment tools
The available tools can interact in the following ways:
- Tools at the same level may override each other.
- Higher-level tools are applied in addition to (“on top of”) adjustments by lower-level tools.
After applying all adjustments, the updated accommodation fare is displayed in the guest folio.
Non-accommodation fare components are shown on separate line items in the guest’s invoice (folio), with some exceptions.
Note:
Channel commission can be added to the reservation total payout or just to the accommodation fare, fees, and taxes
Accommodation fare calculation layers
Let’s explore how pricing tools affect the calculation of the accommodation fare.
| First layer | |
| Second layer |
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| Third layer | |
| Fourth layer |
First layer: Base price
The listing's base price is the price per night if no other tools are used. You can set different base prices for weekdays and weekends. The base price is shown in the calendar unless overridden by a higher-level tool.
When importing a listing from Airbnb, the listing's base price is synced to Guesty.
Second layer: Calendar rates
This layer includes tools that affect the price per night in the calendar. If no second-layer tools are used, the calendar rates reflect the base price.
When importing a listing from Airbnb, calendar prices are imported to Guesty and reflected in the calendar (similar to manual override via the calendar).
Manual adjustments via the calendar
You can manually adjust the price per night via the calendar for specific dates without changing the default base price. Adjustments are immediately reflected in the calendar.
Third-party tool adjustments to the price per night are also considered manual adjustments via the calendar. We recommend not using manual adjustments and third-party tools together, as they may conflict.
Manual adjustments via the calendar (including third-party tools' adjustments) sync with GPO and won't get overridden by it.
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Example: The base price is $60. The price per night for 23 May is adjusted by a rate strategy to $66. Later, the price is manually adjusted via the calendar to $68. The manual adjustment overrides the rate strategy adjustment, and the nightly rate is now $68. |
Higher-level tools, markups, markdowns, and discounts can all work with manual adjustments and will apply “on top” of the second-layer tools.
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Example: A rate plan adjustment of +5% applies to the manually adjusted price for 23 May (68$), changing it to $71.40. |
Guesty PriceOptimizer
Guesty PriceOptimizer (GPO) is a data-driven, machine-learning tool that provides recommendations for your listings' nightly rates based on different time intervals. Our interactive software considers market trends to offer the best-suggested prices.
Ensure you make any adjustments to the price per night directly via the GPO settings.
Manual adjustments via the calendar (including adjustments via third-party pricing tools) sync with GPO and won't get overridden by it.
When deactivating GPO, the price per night will revert to the base price.
Higher-level tools can be combined with GPO.
Third-party pricing tools
Third-party tools can adjust a listing's pricing, and these changes are reflected in the calendar.
Third-party changes are considered manual adjustments via the calendar. Avoid using third-party tools alongside manual adjustments, as they can override one another.
If you disconnect from a third-party pricing tool, the prices don't automatically revert to the default base price; instead, they will remain as currently set. You can adjust the nightly rate to the desired values.
GPO will sync—but not override—pricing adjustments from third-party tools.
Third layer: Markups and markdowns
Markups and markdowns are tools you can use to adjust prices to compensate for a booking channel commission fee.
Guesty automatically rounds up the price following any markup or markdown adjustment.
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Example: If the calculated accommodation fare is $79.20 after a markup is applied, it will be rounded to $80. |
Note:
Weekly or monthly discounts are calculated based on the rounded price.
Fourth layer: Weekly and monthly discounts
Weekly and monthly discounts are set per listing and are synced with:
- Airbnb
- Vrbo
- Direct integration sources
- Manual reservations
Discounts are embedded in the accommodation fare.
These discounts are the final adjustment layer applied to the accommodation fare, meaning the accommodation fare won't be rounded after a discount is applied.
