Vacation Rental Business Strategy Goals
Airbnb Vacation Rental Yield Management
It’s almost that time of the year again, when we all sit down with a pen and paper and jot out our goals for the next year. This year how many of those goals have to do with growing our Airbnb profits? Pricing and yield management are oft among the Airbnb business tips that are overlooked by hosts. This year, assessing our current Airbnb yield management could make next year more than a profitable one.
The Price Is Right
The nightly price is a huge deciding factor for a potential guest searching for a vacation rental. Having our Airbnb priced too high could ostracize future guests. Setting the prices too low might be a good strategy for a brand new host to get some good reviews under their belt, but eventually, the practice would put us out of business. The best way to assess whether our price is right is to check out the competition. By this, we do mean search other Airbnb’s in the area. Heck, even consider staying in one. But also check out the nightly price of local hotels and proper Bed and Breakfast establishments. These rentals are also competition and their nightly price will drive the rates in our area up or down just like our fellow Airbnb competition.
Add Rate Options
Some Airbnb hosts opt out of allowing 1-night stays. Others have 3– 5-night minimums. These rate options are up to the discretion of each individual host. And you know, sometimes taking control of Airbnb yield management means changing our rate options. For some, this could mean charging a higher nightly rate on the weekend. This is especially important for a vacation rental in two or three bedroom units because they are most likely to be booked for last minute weekend getaways. The same Airbnb business tips can be used for holidays or special events. These small adjustments can make a huge difference to our Airbnb income which is why any host should consider these variations for maximizing profits.
Offer The Best Deals
The last of these amazing Airbnb business tips is to offer future and past guests the best deals. For one, it’s a great idea to offer discounted rates or reduction on the minimum night stay for guests that have stayed with us before. Similarly, a referral program is a wonderful tactic for Airbnb yield management and can help turn satisfied guests into more satisfied guests. Think of offering a 10–15% off coupon for guests whose friends book a stay with us. The best deals bring in more bookings, reviews, and earnings for our fiscal year.
Yield management is crucial to being a successful Airbnb host. So this year when we’re writing down our resolutions, maybe this is one to take a look at.
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