Determining your vacation rental pricing without dynamic pricing software is a complicated task. Pricing tools use a whole host of complex approaches to data collection, analysis, and interpretation which brings together various pricing techniques.
DPGO makes use of machine learning. In this post, we’re going to go into more detail on why we use machine learning. We’ll also discuss what exactly it is and why you should care about what it does.
Machine learning falls under the umbrella term of ‘Artificial intelligence’, so first, we need to define AI and explain how technology makes use of it.
What is Artificial Intelligence?
Artificial Intelligence, or AI, as it is commonly known, is the type of intelligence displayed by machines. And, for reference, both humans and animals exhibit ‘natural’ intelligence.
When it comes to developing technology, AI plays an important role. According to BuiltIn, “Artificial intelligence (AI) is a wide-ranging branch of computer science concerned with building smart machines capable of performing tasks that typically require human intelligence. AI is an interdisciplinary science with multiple approaches, but advancements in machine learning and deep learning are creating a paradigm shift in virtually every sector of the tech industry.”
How Does AI Function in Vacation Rental Pricing Technology?
According to SAS.com, “AI works by combining large amounts of data with fast, iterative processing and intelligent algorithms, allowing the software to learn automatically from patterns or features in the data. AI is a broad field of study that includes many theories, methods, and technologies. So, in summary, the goal of AI is to provide software that can reason with input and explain with output. Thus, AI will provide human-like interactions with software and offer decision support for specific tasks.”
Fundamentally, AI is utilized by technology firms to optimize the processing of large amounts of data.
Let’s learn more about how machine learning informs vacation rental pricing software!
What is Machine Learning?
There are a few definitions of machine learning as it is a complicated subject. We define it as the process which allows our pricing algorithm to learn more with every prediction that it makes. Often, machine learning is seen as an aspect of artificial intelligence because it allows a program to improve through experience.
Why Do We Use Machine Learning?
We designed DPGO to be the most advanced dynamic pricing tool for vacation rental pricing on the market. So, in order to make that happen, we knew we needed our pricing tool to constantly learn and improve.
What Does Machine Learning Do?
Machine learning allows our pricing tool to detect changes in activity and works to predict further trends and surges in market demand. It works on a simple premise – the larger the amount of data, the more in-depth the learning process, and the more accurate the result will be. It means that over time, machine learning software will continuously improve its pricing recommendations.
Machine learning means that software does not need a programmer to explicitly program software to perform certain tasks based on certain data-dictated lessons. Instead, it means that the software has the power to learn said data-driven lessons on its own.
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