At the end of a season, you should already be thinking about the prices for the following season. Seasonal pricing depends on a variety of factors. These include competitor prices, market supply and demand, and the overall health of the market. (Pandemic/lockdown/...)
Indeed, the key to pricing is foresight and research. So it's essential to know how your prices fared in the previous year. If your occupancy rates were low compared to those of your competitors, it is very likely that your prices were too high. Adjusting your prices to your competitors on similar properties is a first avenue to exploit for your strategy.
Experienced Airbnb hosts know the importance of setting minimum stays. While it's not explicitly part of your vacation rental pricing strategy, it does affect your revenue.
This is why, requiring a minimum number of nights in high season will prevent you from having only stays of one or two nights, spaced out sporadically on your calendar.
As a result, most hosts increase their minimum overnight stay requirement during peak periods. In addition, cleaning costs are decreasing for the benefit of travelers, it is a win-win situation.
Today, savvy travelers don't just compare a daily rate. They also look at the total cost including fees. As part of your vacation rental pricing strategy, you should use your pricing structure in an optimized manner.
So, drastically lowering your rates and offsetting them in fees is certainly not the best way to go. Nobody wants to pay a cleaning fee of €150 for a three-night stay.
Finely adjusting your rates to demand will therefore be the key to success.
Outside of peak season, reservation rates in your area may vary when there is an event in the area.
If there is a music festival, marathon, or sporting event in your area, you can easily increase your rates.
Indeed, it is common in the vacation rental sector to increase prices during periods of higher reservation rates.
Analyze what your competitors charge, look at hotel rates for these dates, and try to position yourself to attract bookings.
Incorporating last-minute discounts is a great way to encourage a reservation in the last few days before the desired check in. If you lower your prices to encourage last-minute bookings, your listing will be more appealing to potential customers.
Tenants are looking for the right balance between price, location and amenities. In the vacation rental industry, how you compare yourself to your competitors is critical.
By adding a discount to non-booked dates that are fast approaching on your calendar, you will have the opportunity to increase your income and your occupancy rate. Simply put, any reservation is better than no reservation. Especially when you have set yourself a minimum price!
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