Virtuosos of Price

Clarify Pricing Roles

Many property management companies operate with informal understandings about who is responsible for pricing. As the number of listings grows, these loose agreements often break down. This leads to inconsistent pricing, missed opportunities, and unclear accountability.

The real situation is that pricing requires specific roles and responsibilities, much like other critical business functions. Without defined roles, pricing decisions can fall through the cracks or be made by whoever is available, regardless of their expertise or the strategic context.

The Need for Clarity in Pricing

Pricing decisions impact revenue directly, yet many teams lack a formal system for who makes these decisions and how. The complexity increases with every additional listing. Without clear roles, team members might hesitate to make pricing changes, fearing they lack authority.

Or, multiple people might make conflicting adjustments, leading to instability. This lack of clarity can result in prices that don't reflect market conditions or the property's value. The problem isn't just about setting the right price; it's about ensuring there's a consistent, accountable process for making those decisions.

Introducing the RACI Model

The RACI model provides a structured way to assign responsibilities for any process, including pricing. RACI stands for Responsible, Accountable, Consulted, and Informed. This model helps clarify who does what, preventing overlaps or gaps in responsibility.

It's a simple framework that can be applied to pricing activities within a property management company. By mapping out roles using RACI, teams can avoid the common pitfalls of informal decision-making. The model ensures that every pricing activity has clear ownership and that stakeholders are appropriately involved.

Defining Roles for Portfolio Pricing

Applying the RACI model to property management pricing involves defining roles for key activities. For example, the Revenue Manager might be Responsible for executing daily price adjustments, while the General Manager is Accountable for the overall pricing strategy. The Property Manager could be Consulted when local market conditions affect a specific listing.

The entire team might be Informed about significant pricing changes or strategy shifts. This structure ensures that pricing decisions are made by those with the right expertise and authority, while others contribute their insights where needed. It also makes it clear who needs to know about pricing decisions, ensuring transparency.

Implementing the RACI Framework

To implement RACI for pricing, start by listing the key pricing activities your team performs. These might include setting initial prices, making daily adjustments, analyzing market data, or responding to competitor changes. For each activity, assign the RACI roles.

One person or role should be Responsible for taking action, one Accountable for the outcome, specific roles Consulted for input, and roles to be Informed. Document this mapping clearly. This process might reveal overlaps or gaps in your current approach.

For instance, you might find that no one is formally accountable for the overall pricing strategy, or that the person responsible for daily adjustments isn't consulted on broader strategy. Adjust roles as needed to create a cohesive system. This framework can support broader revenue management strategies for property managers.

Maintaining Accountability

Once roles are defined, the next step is to maintain accountability over time. This involves regular reviews of pricing activities and outcomes. Hold meetings to discuss pricing performance, ensuring the Accountable party reviews results and the Responsible party explains actions taken.

Document decisions and rationale, linking them back to the defined roles. Adjust the RACI mapping if roles change or if certain activities require different levels of involvement.

Accountability isn't a one-time setup; it requires ongoing attention. By consistently applying the RACI model, property management companies can ensure that pricing remains a disciplined, strategic function rather than an ad-hoc task.

What this means in practice

In practical terms, this means the Revenue Manager takes ownership of executing the pricing plan, making daily adjustments based on market conditions and occupancy goals. They act as the primary driver of tactical pricing moves. Meanwhile, the General Manager holds the ultimate responsibility for the strategy's success or failure, ensuring it aligns with broader business objectives like profitability and brand positioning.

They might consult with the Revenue Manager before approving major shifts, such as entering a dynamic pricing program, while also ensuring the Data Analyst's insights are factored into long-term planning. This structure prevents pricing from becoming a reactive, isolated task handled by whoever has a spare moment. Instead, it becomes a coordinated effort where each person understands their specific contribution to achieving the property's financial targets through disciplined pricing actions.

For the wider frame around this, see revenue management for property managers.

Where this becomes someone else's job

Everything above is a method you can run yourself. The question that decides whether you should is not whether the method is sound, it is whether anyone will run it on the day it matters.

Performance includes full software stack dynamic pricing, daily adjustments by experienced rate strategists, Airbnb listing performance monitoring and email alerts for low visibility or booking conversion, monthly reports. Maestro includes everything in Performance, done-for-you listing optimization, proactive Airbnb listing performance monitoring with visibility and booking conversion issues handled for you, works with Airbnb or your channel manager, ongoing listing refinements.