Setting the Best Price for Your Vacation Rental Property

Setting the Best Price for Your Vacation Rental Property

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 VacayHome Connect, which connects vacation rental properties with consumers. By integrating with your existing property management systems, VacayHome 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 VacayHome 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.

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About VacayHome Connect

VacayHome 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 VacayHome Connect Platform connects more than 100,000 vacation rental properties to millions of leisure customers to provide them an unparalleled shopping and booking experience.

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Tom BoylenTom is a general market municipal trader at Performance Trust, having joined the company in July 2011. Prior to joining Performance Trust, Tom spent three years at BMO Capital Markets as Head of Trading and Underwriting, including tax-exempt and taxable products. Prior to that, he spent over 10 years at Griffin, Kubik, Stephens & Thompson, first as Vice President of Municipal Trading and then as Senior Vice President and Head of Trading and Underwriting.

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Jeff brings over 34 years of business development experience within the Global Capital Markets and Bankruptcy/Restructuring industries assisting high-profile clients with the distribution of highly confidential, time sensitive stakeholder communications, including initial public offerings, equity/debt registration statements, mergers & acquisition documents, spin-offs and Chapter 11 restructuring plans of reorganization. His clients include public and privately held corporations, top tier law firms, private equity, venture capital, financial advisory, restructuring and investment banking.

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Mr. Jay J. Levin was President and Chief Executive Officer of PPOM, a Michigan-based, health care network management company serving more than one million individuals in Michigan, Ohio, Wisconsin and Kentucky. As a founding partner, he played key roles in acquisitions, marketing, provider network development and operations. He was also central to the negotiation and sale of a major portion of PPOM to the Texas Pacific Group (TPG) and the subsequent sale of the balance of the company to Blue Cross Blue Shield of Michigan.

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Roland Jacobs is former chief marketing officer of Orbitz, the online travel agency, and currently is President & CEO of AspireUp, a strategic branding consultancy dedicated to helping companies grow. He is a recognized expert in the areas of marketing strategy and branding and consults with a wide range of clients, from start-up to Fortune 100 companies. In addition to his work as a consultant, Roland teaches marketing strategy as a guest lecturer in the MBA programs at Northwestern University’s Kellogg Graduate School of Management and the University of Chicago Booth Graduate School of Business. Previously, Roland was also the marketing chief for e-commerce companies Digitalwork and Petopia.com, and spent 10 years in brand management at The Clorox Company. He has and MBA from Harvard Business School.

Peter has extensive experience in the hospitality industry with a focus on e-Commerce, distribution and revenue management. The combination of these fields allowed him to create top line revenues with a focus on bottom line profits. In his previous role at Preferred Hotel Group as Director, eMarketing he has proven record of exceeding goals, achieving milestones and creating profitable new business opportunities. Other companies include Swissotel, Raffles International, Hard Rock Hotels and Le Meridien. Peter also used to serve on the board of the Digital Marketing Council of the Hotel Sales & Marketing Association International (HSMAI). In his leisure time Peter serves as the President at the German American Cultural Center in Chicago (DANK Haus) where he is preserving and promoting his German heritage and language through activities including, but not limited to, maintaining a cultural center consisting of a museum, art gallery, library, and language school, and organizing educational and social programming focusing on and emphasizing history and traditions. He is also an avid traveler and tries to add new destinations around the globe to his long list of places he has already visited.

Jeffrey Ring is a senior technology development professional with extensive expertise in knowledge engineering, business intelligence, architecture assessment and web-based applications development. For more than 23 years, Jeff has successfully managed and performed major software development projects across a broad range of industries including health care, financial services, real estate and professional services. Jeff has led technical teams in the design, implementation and support of a range of web-based, data-driven applications and complex systems that support functionalities such as: CRM, inventory management, order processing, credit card processing, contract management, and sales and marketing statistics.

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Chris works on the development of strategic partnerships that enable VacayHome Connect to efficiently support vacation rental managers and shared ownership developers/resorts that want to to distribute their inventory to consumers who have a growing interest in alternative accommodations. Chris brings over 20 years of experience building great products and helping travel suppliers efficiently promote and distribute their products through digital channels. He most recently served as Chief Product Officer for an innovative startup company in the loyalty space, building a revolutionary new platform that will enable consumers to use their loyalty program rewards for everyday purchases.

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Some of the highlights of Tony’s career to date include the opportunity to speak at Timeshare and Tourism conferences worldwide and to work with a wide variety of clients across the Globe. He was privileged to serve as Chairman of the American Resort Development Association (ARDA) and was a founder and first Chairman of the Global Alliance for Timeshare Excellence (GATE). In addition to his job history he has completed assignments for more than 90 clients in over 30 countries and has provided advice and restructuring of marketing and sales programs for several financial institutions including the FDIC. He has worked in Corporate environments several times over his career and has served as a Board Director on numerous occasions.

Chuck began his timeshare career leading the re-engineering of RCI’s core exchange operating system, in the early days when Christel and Jon Dehaan ran the company, after a sterling early career at United Airlines. He then honed his craft in product, process and system development with Disney, Four Seasons USA, Marriott Vacation Club, Gold Key Resorts, and Grand Crowne Resorts. For over 25 years, Chuck has been relentlessly focused on delivering high impact results, rapid growth, and quality, ethical products and services. A strong leader in business development, e-commerce, marketing, product development, he is a Registered Resort Professional (RRP) and accredited by the American Resort Development Association (ARDA). He is also a regular speaker at ARDA’s Spring Conferences and a genuine and consistent supporter of the quality and ethical standards of the vacation ownership industry.

Mike has spent more than 20 years working to make it easier for consumers to shop and book travel accommodations online while at Travelport, TravelClick, and Pegasus Solutions. As COO, he brings his enthusiasm for vacation rentals to professional property managers, innkeepers, vacation homeowners and shared ownership resorts by ensuring the company’s products and services remain affordable and generate incremental revenue. Customers value his expertise and innovative thinking to help them connect with consumers seeking vacation accommodations.

Sunil Aluvila, has been an innovator in ecommerce, digital marketing, product development and distribution in the vacation industry for more than 18 years. He has extensive experience in digital marketing, online travel technology, webstore and distribution platform development for the vacation rental and ownership industries. His expertise in the online travel distribution arena ranges across various channels, having worked as both a supplier and an intermediary.

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