When you are managing vacation rentals, determining the right price for your rental can often be challenging. What is the best price that will bring the most guests, while returning a profit? How can you remain competitive, while not undervaluing your property?
Having a strong revenue management strategy is important to fully maximize your profits. When it comes to vacation revenue management, here are a few points to consider.
Know your market
Take time to really understand the market and your guests. At the most basic level, you should plan to price for the peaks and troughs of your market. It also helps to take a look at your competition, the other vacation rental properties in your area. What are their rates compared to yours? What are they offering that you are not?
In addition to getting to know your competition, try and step into your guests shoes, and think about what they might want and value. What is it that your property has (a great location, a great view, or luxury amenities) that would be valuable to your guests? Take a look at their behaviors. How long are they normally staying? How many people are usually booking at a time? Being able to understand your guests will help you better strategize the right price.
Make your property stand out
The old saying, “a picture is worth a thousand words” cannot be truer than when it comes to managing vacation rentals. When you’re listing your property, make sure you use pictures that really showcase your rental. Use clear, well-lighted photos and write descriptions that provide a mental picture of what staying at your rental property really feels like.
Maximize your property’s exposure
When it comes to developing a revenue management strategy, it’s important to maximize your property’s exposure. This helps increase demand for your property, and that increased demand gives you more leeway to set more favorable prices.
With that said, keep in mind the role that channel management has when it comes to pricing. You don’t want to cut into your profits just to be available on every distribution channel. It’s better to pick those channels that are most cost-effective for your rental property.
To help simplify channel management, utilize the marketing tools that are available for vacation rental property managers, including third party distribution channels. One such tool is VacayStay Connect, which connects vacation rental properties with consumers. By integrating with your existing property management systems, VacayStay Connect takes care of the technical aspects of channel management and provides property managers the opportunity to showcase their properties through exclusive member travel programs. Tools like VacayStay Connect makes it easy to maximize exposure to your property.
Vacation revenue management can be challenging, but it doesn’t have to be impossible. Really knowing your market, making sure your property stands out, and maximizing exposure to your property are the keys to ensuring pricing success for your vacation rental property.
Looking for more tips and tricks? Download our vacation rental checklist to make sure you’re fully optimizing your property listings.
About VacayStay Connect
VacayStay Connect, the leading full-service distribution solution for the vacation rental industry, delivers property managers of both homes and resorts increased bookings across a variety of global travel sites like HomeAway, VRBO and Booking.com, as well as a network of exclusive membership and loyalty channels and branded websites. Integrated with a majority of leading property management systems and channel managers, the VacayStay Connect Platform connects more than 100,000 vacation rental properties to millions of leisure customers to provide them an unparalleled shopping and booking experience.