Accommodation Pricing (RAD/DAP)
Consumer choice is a rapidly developing element of our industry. To be competitive you need to understand your market and your place in it. The changes to ACFI mean that achieving optimal accommodation revenue outcomes is now more important than ever. To be sustainable you cannot afford to leave any accommodation revenue unrealised, but it requires knowing your market, setting the right price and setting the right targets for admissions performance.
Having a sound revenue management plan for your Residential Accommodation Deposits (RADs) and Daily Accommodation Payments (DAPs) is important for long-term financial sustainability and operational effectiveness. This means:
- Setting a price based on your product and its ability to fulfil a need
- Being able to articulate the value of that price and its place in the local market, and
- Utilise RAD/DAP combinations to achieve optimal outcomes for the business and provide more choice to the consumer
Setting the right price. Understanding how your room price compares to similar rooms in your area is one key factor in attracting prospective residents.
It is time-consuming to record this information both at the outset and as prices inevitably change over time. However – help is at hand – Mirus, using publicly available information from www.myagedcare.gov.au, has developed a simple report tailored for your facility. Highlights from this report include:
- A list of facilities that are nearest to your facility
- A list of all room types and prices for those facilities
- Minimum, maximum and average prices for these facilities by room type
Mirus Australia can review your accommodation revenue to make sure it’s working for your long-term goals. We can help you develop the best strategy for your accommodation decisions around supported resident ratio and RAD/DAP split. And, you will be able to better manage your new admissions through Mirus Admissions Companion.
Mirus can tailor a report specifically for your facility for $250+GST. Discount for more than 5 sites+: $200 per report.
Fill out the form below to order your tailored report and hear about how our services can help your facility manage the change to RADs and DAPs on an ongoing basis.
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