A well-crafted vacation rental pricing strategy and correct price setting are key to achieving high occupancy rates for your vacation rental and increasing your profits. The nightly rate must be high enough to cover all fixed and variable costs while remaining competitive in the market and still generating enough income to make renting your accommodation worthwhile. Finding the right price may take time, effort, and experimentation.
An appropriate pricing strategy for your vacation rental will increase occupancy and revenue. You can set the pricing strategy yourself, seek help from a property management agency to conduct a market analysis, or use tools that simplify the process. If you choose to set the prices on your own, here are some guidelines to help you:
Determine the Minimum Price
When setting the minimum price, ensure that all your fixed and variable costs are covered, including utilities, taxes, and any management fees. Additionally, account for regular professional deep cleaning and maintenance. Paying attention to cleaning and upkeep will earn you good reviews and higher future revenue. Once you know all your costs, set a minimum price that still provides a minimal profit.
Check Competitor Prices in Your Area
Your competition provides insight into the overall pricing strategy. Search for similar vacation rentals in your city or area on booking platforms like Booking.com and Airbnb. Use search filters to display vacation units with similar amenities and room counts as yours. Review their pricing policies, ensuring you compare similar units. Understanding competitor prices will bring you one step closer to setting the right price.
Define Low and High Seasons
Most vacation rental owners set two pricing structures: one for low season and one for high season. Check competitor calendars for their low and high season prices. Based on your location and time of year, define your low and high seasons. For the low season, consider the minimum price you set to avoid renting below cost.
Set Special Prices for Holidays and Events
Experienced vacation rental owners know that demand changes more frequently than seasons. Weekly or even daily factors, such as weather, events, and holidays, influence demand. Regular price adjustments will help fill your calendar and increase your per-night earnings.
Be Flexible
Although the goal is to book every night, this is highly unlikely even in the most popular locations. A well-established pricing strategy can reduce the number of vacant nights, but you must remain active to fill available dates efficiently. Don’t be afraid to experiment with different prices and offer discounts or other incentives to attract guests and fill open slots.
Hire an Agency
Partnering with the Nomadi agency to manage your accommodations includes a free pricing strategy tailored to your property. Send us an inquiry or contact us through the form below, and we will get in touch with you shortly.