As of 2024, the vacation rental market is the most robust real estate investment. However, experts and analysts predict that the industry will thrive for decades. In fact, they believe the share size will reach almost USD 229 billion by 2023.
Hard work is necessary for a bright future. But it will only take you so far. You must utilize short-term rental management and competitive pricing strategies to ensure success.
To uncover a foolproof pricing strategy for your property, read on until the end!
Every successful pricing strategy or campaign starts with a competitive analysis. Studies show that there are 1.067 million rentals littered nationwide. Therefore, competition within the industry is at an all-time high.
You can ensure your pricing is competitive by knowing what you are against. In addition, you know the deals. This allows you to deliver even more enticing offers to attract guests and increase vacation rental bookings.
Research various platforms as if you were a visitor booking a rental. Note the price per night, location, amenities, and size. As a result, you can adjust your strategies more than by setting a lower price.
Length of Stay Discount
Before the global pandemic, travelers often took multiple weekend breaks throughout the year. Due to travel revenge, people have shifted their focus and now visit spots for an extended period.
Around 85% of Americans plan to travel in the summer. The majority of people plan to stay for up to two weeks or more.
Revenge travel isn't the only thing making people travel more. Remote jobs have skyrocketed since the pandemic forced people to work from home. In return, visitors combine work with travel.
A length-of-stay discount will entice extended-stay travelers to your property. It will also secure bookings in advance, as finding these homes is challenging.
As a rental manager, you can differentiate your offerings by providing value-added packages. Packages may include special amenities or concierge services. You can even go a step further and partner with local firms to offer guests exclusive discounts.
By adding these extras, you can justify a higher price while improving the experience. For instance, a ski-in/ski-out property might offer discounted lift tickets. Alternatively, you can add exclusive deals on equipment rental as part of a sports package.
Peak and Off-Peak Pricing
Every city and state in the United States has a different peak tourist season. So, researching your area and tourist trends is vital.
In Kalispell, MT, the busy period lasts from June to August. During this time, people come to explore the best things to do and enjoy the high temperature of 78 degrees. You can justify higher prices per night since demand for homes is here.
In the low seasons from November through February, consider lowering your costs. You can attract customers looking to grab bargains by visiting outside the summer.
Utilize Short-Term Rental Management Price Strategies in Kalispell, MT
It's no secret that vacation rentals are one of the most financially secure investments you can make in 2024. Nevertheless, you still need to know how to effectively price your home. You learned how to do so after reading our short-term rental management guide.
But did you know that a 100% locally owned firm and a manager with local knowledge can handle this and more?
Contact PMI Realty Management NW today to discover more!