Competitive pricing is a crucial aspect for revenue management and optimization of your vacation home.
Didn’t understand?
Don’t worry this is where dynamic pricing comes into play.
When it comes to vacation homes, dynamic pricing (an example of price intelligence) is a technique to generate increased revenue based on:
· market supply and demand
· days of the week
· lead time
· seasonality, etc.
How to go about it?
Start off by using your average base rate as a starting point.
For example, if your average nightly rate in high season is $300 and $100 in low season, your base price will be $200.
Then study the trends of the factors mentioned above and adjust your nightly prices throughout the year.
Be sure to take care of ‘orphan days’ – the gaps in the middle of your busy calendar.
Offering discounts will facilitate bookings in these days.
You can also put minimum night restrictions for your listing.
When you make it mandatory for a particular number of nights to be booked for each booking, you can save on maintenance and cleaning costs of one-day bookings.
It also ensures that you don’t have un-booked nights during high-demand seasons.
We’d advise using a dynamic pricing tool that uses real-time data to suggest an optimal price for your rental.
OR better yet, get us on board and we’ll take care of everything!
Click here to learn about our proven strategies for maximizing rental yields in Dubai.
