LRO Student Software Addresses Unique Supply and Demand, Pricing and Renewal Challenges Associated with Niche Market
ATLANTA, GA - October 16, 2012 - The Rainmaker Group, the leading provider of revenue management and profit optimization solutions to the multifamily housing and gaming/hospitality industries, announces the launch of LRO Student, the first revenue management platform of its kind engineered specifically for the student housing market. Beyond pricing recommendations based on mathematical analysis, historical data and market share, student housing owners and operators utilizing LRO Student now have greater flexibility and ability to react to leasing pace, supply and demand constraints, and can gain access to more robust market share comparisons.
From renting bedrooms instead of units to having a group of applicants as opposed to a single applicant for an apartment, student housing is a unique, growing market with many challenges that make pricing optimization difficult using traditional market rate platforms, said Andrew Rains, executive vice president of Rainmaker LRO. LRO Student overcomes these challenges. Our team designed this system from the ground up to deliver robust, mathematically-driven pricing recommendations taking all of these unique challenges into consideration. LRO Student will revolutionize pricing strategies within this niche market to further improve our client's operations, revenue tactics, and even enable more portfolio diversification.
With similar user interfaces, functionality, and reporting capabilities as LRO revenue management, LRO Student delivers superior pricing recommendations based on the specific move-in periods for each academic year for all residents, beds within a given asset, and unique expiration periods (all students eventually graduate). Additional key benefits available to student housing owners/operators through this offering include:
- More accurate view of supply and demand constraints - takes into consideration the limited applicant pool based on school or university populations
- Greater market share analysis - ability to better track competitive products for a given educational institute
- Improved pricing - recommendations driven by in-depth analysis of historical and market data instead of emotional pricing
- Increased probability of renewal - engages property management software data to improve renewal forecasting
You get one shot to meet operational goals in student housing, said Steve Tappert, vice president of strategic initiatives for Rainmaker LRO and product architect for LRO Student. The market lacks a steady demand model so the math in revenue management strategies needs to be changed and there are different drivers that need to be evaluated. Booking curves and leasing pace are much different and the potential for loss is much higher if occupancy isn't met. These are just some of the factors LRO Student takes into consideration in its pricing recommendations and analysis.
LRO Student is the newest offering within the Rainmaker LRO product suite, which includes the market rate revenue management software LRO, as well as LRO Budget, another software-as-a-service application leveraging a more robust, scientific, analytical approach to budgeting and forecasting. The Rainmaker Group will be adding more products to the LRO platform through new development and acquisitions. LRO Student is currently in beta test with Inland American Communities and Carmel Properties; it will be generally available later this month.