All vacation rental hosts are familiar with the process of choosing the prices of their properties. Choosing a price that is fair for both the host and the guest is an important consideration. This base price changes periodically and can go up or down throughout the year or based on the situation. Situations such as time of the year, duration of stay, and new rentals may merit a guest discount.
Time of the year
Based on where your property is located, there are different times of the year that you will experience your slow season. Part of this consideration is knowing the area that your property is located and what times of the year more guests are visiting your city. Lowering your prices during these slow seasons increases your chance of receiving bookings compared to your competition. Changing prices based on time of the year does not always mean giving a discount. Depending on where you are located, you may raise your rates. If you live in an area that is a tourist attraction during the summer or hosts winter sports such as snowboarding, these are the times of year you may benefit from raising your prices.
Duration of stay
Guests who are considering an extended stay in your rental may receive some sort of nightly discount. Typically when a guest’s stay exceeds one week you may want to consider offering a discount. If the guest sees that the rental is more affordable for their extended stay, they will be much more likely to book your vacation rental.
Offering guests that have stayed with you in the past a discount if they return is a great opportunity. This can be done during your slow seasons, this way you can fill vacancy. By having returning guests staying with you, you eliminate the risk of new guests. With new guests, hosts worry that the guest may not be respectful to your home or your house rules.
As a new rental
It can be hard for vacation rental hosts that are just starting and have few to no reviews yet. When you are just starting out, you may want to offer low prices to entice guests to stay. Guests typically look over properties that have few reviews. If potential guests recognize that they are getting a deal for their stay, they will be more likely to stay at your property. They will also be more likely to give you a good review for the deal that they received.