The Demand Solutions Blog

Dom Beveridge

Dom Beveridge is a Principal with D2. He has held leadership roles in consulting, revenue management and marketing for more than 20 years. Dom's blogs cover revenue management, marketing, and multifamily technology and industry trends.
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Recent Posts

CoStar Shoots for the STRs - Big News for Multifamily?

Posted by Dom Beveridge on Oct 8, 2019 8:20:46 AM

I must admit, last week's acquisition of Smith Travel Research (STR) by the CoStar group took me by surprise. And it wasn't just me - few observers of either the hospitality or multifamily industries expected it. As the dust settles after a seismic move, let's take a moment to think about some of the possible implications of this acquisition.

First, this is a big acquisition. Although not quite at the same dizzying heights of the 2014 Apartments.com takeover, $450m for a data company (i.e., not a product like an ILS that drives prospects to its customers) is extraordinary. But STR is no ordinary data company. It is not an exaggeration to say that STR is the foundation upon which property analytics are built in the global lodging industry. For decades, STR has been the gold standard for property performance and property underwriting. Nobody plays in this critical niche at the same level in multifamily.

For CoStar, who now have the habit of entering new markets with a strategy of going very big, the strategy makes perfect sense. Overnight they have become the uncontested, dominant force in hotel analytics. The merger on this scale creates many exciting opportunities, including a couple of potentially important ones for multifamily.

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Topics: Pricing, multi-family housing, Short-Term Rentals

Ten Questions Asset Managers Should Ask About Pricing

Posted by Dom Beveridge on Sep 10, 2019 8:26:00 AM

Recently we have written extensively on the skills that are needed to run an effective pricing and revenue management (PRM) organization.  We normally take the perspective of an organization looking to bolster its PRM capabilities - something that we feel companies should focus on after a decade of growth in multifamily.  But there is one important stakeholder group whose perspective we have not addressed as directly as the others: asset management.  

Through our industry connections and our growing roster of institutional ownership clients, we have come to pay more attention to the asset management perspective over the last year or so.  With regard to revenue management, asset managers have the often unenviable task of overseeing the revenue management decision-making of third parties, usually either management companies or software vendors.

In either case, an asset manager has to understand enough about market conditions and strategy to be able to evaluate a property’s pricing tactics.  They must resist getting into the weeds, of which there are many in the case of PRM, but still provide oversight. With this problem in mind, we recommend asking ten questions that will help you understand where your PRM opportunities might be.

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Topics: Pricing, Revenue Management, multi-family housing, pricing and revenue management

Bridging the Business Intelligence Divide

Posted by Dom Beveridge on Aug 26, 2019 11:24:49 AM

Lately, I’ve been talking to a lot of companies about business intelligence, and the ways that organizations attempt to deliver this key capability.  While there is a broad understanding of the need to bridge the gap between the business and IT organizations, the evidence suggests that the gap remains unbridged at many companies.

A recent article on the subject from McKinsey: “Analytics Translator: The new must-have role” suggests that the rewards are getting bigger, rather than smaller for companies who succeed in providing business leadership for increasingly critical IT-enabled analytics projects.  The logic goes that as data sets get bigger and data mining resources more sophisticated, firms will require a level of leadership that will ensure the maximum impact from their analytics.  

The point of the article is persuasive; however, we have argued for a long time that this requirement already exists.  In fact, it’s probably the biggest single reason why multifamily companies fail to reap the benefits of their business intelligence projects.  As we explained in our own white paper: “Creating an Analytically-Driven leadership Culture,” if business people are blue and IT people are red, then the best business intelligence resources are purple.  As both articles strongly suggest, purple people are among an organization’s most prized associates.

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Topics: business intelligence, Multifamily Trends, Technology

It’s the (Revenue Management) Strategy, Stupid!

Posted by Dom Beveridge on Aug 14, 2019 11:03:51 AM

You reach an age when everything reminds you of something in the past, often for reasons that aren’t immediately obvious. A few weeks ago I was talking to a seasoned pricing and revenue management (PRM) practitioner, and I found myself reminded of an old political slogan.

Most readers of this blog are probably too young to remember the 1992 US general election. But after Bill Clinton won it, it came to light that the mantra “It’s the economy, stupid,” had been drilled into campaign staff. The slogan was intended to remind them never to stray from the core theme of the campaign, which was the plight of the American worker. An overarching strategy begat an overarching message that dominated an ultimately successful campaign.

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Topics: Revenue Management, pricing and revenue management, Future

Multifamily Pricing: The Danger of “Doing Fine”

Posted by Dom Beveridge on Jun 25, 2019 3:57:01 PM

A couple of weeks ago, we published a post about the risk to multifamily operators of complacency in their approach to pricing and revenue management (PRM).  Frequent readers of this blog will be familiar with this theme, which was a major finding of our 20 for '20 white paper.  To summarize, PRM seems to have slipped from the senior management agenda, resulting in a pervasive view that "PRM is doing fine."

PRM has been doing fine in multifamily for a number of years - in fact, it's been doing exceptionally well, delivering outsized returns for operators and investors alike.  Looking forward, however, our concern is not so much with the current business practice, but its future evolution. With reduced senior management attention and technical innovation delegated to a highly consolidated vendor community, several of the drivers for big change appear to be missing.  To put it another way, the source of the next big thing in PRM is far from clear.

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Topics: Pricing, Revenue Management, pricing and revenue management

The Year They Put the “Innovation” into AIM

Posted by Dom Beveridge on May 8, 2019 10:14:59 AM

Early May has long been the time of year for multifamily marketers to head to Orange County, CA for AIM. As convivial networking opportunities go this event can’t be beat, which explains it’s impressively growing audience of both owner/operators and sponsors.

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Topics: apartment marketing, Multifamily Trends, Technology

The Next Big Thing in Multifamily Revenue Management

Posted by Dom Beveridge on Apr 23, 2019 9:42:19 AM

Pricing and Revenue Management (PRM) in multifamily turned 18 years old this year. For those interested, the first-ever deployment of a PRM system took place in February 2001 at the Hunters Run apartment complex in Austin, TX. When we sat down recently with 20 multifamily executives to discuss the industry outlook towards 2020 and beyond, we invited them to provide their perspectives on the current state of PRM.

We discuss the results of our research in greater detail in our 20 for '20 white paper. Below we have summarized the feedback that we received on possible future PRM advancements and areas of opportunity.  We found that PRM system-specific feedback fell into two broad categories: how to improve the current models; and more radical improvements and future direction.   

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Topics: pricing and revenue management, Multifamily Trends, Future

Why Short and Long-Term Priorities Aren't the Same for Multifamily Leaders

Posted by Dom Beveridge on Mar 27, 2019 9:13:44 AM

After a decade of unprecedented growth, the multifamily cycle is hard to predict, as each new year of growth moves us further beyond historical norms. Our industry has lately acquired the habit of starting each year wondering if this will be the one where the bull run comes to an end. When we interviewed 20 executives at the end of 2018 for our 20 for ’20 white paper, we were keen to understand they saw the next few years and how that impacted their priorities.

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Topics: Multifamily Trends, Future

The Multifamily Technology Projects that Dominated 2018

Posted by Dom Beveridge on Mar 21, 2019 11:02:42 AM

It’s easy to get caught up in industry hype – especially when new and exciting technologies come along.  Industry press, conferences and blogs like this one provide the platform to engage an audience in a conversation about the next big thing.  We recently took the opportunity to step away from the domain of thought leadership and ask a group of senior multifamily executives for their own perspectives about a range of issues – most notably, technology.

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Leasing Up in London - Familiar Challenges in a New Multifamily Market

Posted by Dom Beveridge on Feb 19, 2019 8:04:00 AM

Last week I was in London – the city where I grew up and spent most of my formative years. I have never used trips home to view multifamily real estate, but this time was different. A couple of weeks ago at NMHC Annual, I attended the session that provided an overview of London’s Wembley Park project. With that presentation still fresh in my mind, I couldn’t leave my home town without taking a tour of the development.

For those unfamiliar with the project or its locale, Wembley is home to England’s national soccer stadium. It is familiar to most people as a concert venue, the home of the annual FA Cup final, and the iconic site where England won the World Cup (in 1966). Although it is not far from central London, all paths lead to the imposing stadium that dominates the whole area. Crowds arrive for the game or concert and then leave – or at least that’s the way things used to work. Today a revolution is underway that will change that forever.

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Topics: Revenue Management, pricing and revenue management