The document provides tips for determining the optimal pricing strategy for vacation rental properties. It recommends comparing your property to similar competitors to determine average pricing, considering factors like amenities, location, and booking frequency. It also advises estimating booking potential based on seasonality, costs like utilities and salaries, and allowing discounts for longer stays as part of an overall pricing strategy. New technologies can automate some of these analyses to dynamically set prices.

1. How much
should you
charge for your
vacation rental?
Tips & Strategies...

2. Why pricing matters?  Higher price reduces
bookings
 Lower price reduces
profits
 Price should cover costs
and result in profit
 Correct pricing strategy
can make your VR a
success
 There is no right price,
but there can be tips and
trick for pricing
competitively…

3. Know your competitors...
 Compare what similar
property owners are charging
 Consider property features
and amenities and competitive
factors for peer-group selection
 Check their calendars for
booking frequency
 If they are booked most of the
times, then they are priced
correctly
 Pricing higher would require
you to have a better offering

4. Know your USP & compare among
equals...  List your property’s
distinguishing features
 Draw comparisons based
on these features
 Don’t compare apples and
oranges.
 Properties having more
luxurious kitchen, bedroom or
bathroom than yours are not
perfect competitors
 You can’t charge the same
price as a more luxurious
offering

5. Estimate your booking potential... Off-season booking
potential is low – High supply,
low demand
 This calls for discounted
pricing
 Peak season booking
potential is high - – High
demand, low supply
 This calls for premium
pricing
 Local events are another
factor for gauging booking
potential
 Weekend bookings should
be priced higher than
weekday bookings

6. Estimate your costs... Costs incurred need to be
considered while determining
the price per night
 Certain costs such as
monthly salaries to
employees, Internet and TV
connections are fixed
 Other costs, such as the
supplies & utilities are
variable based on bookings
 Variable costs need to be
estimated while fixed costs
are known
 Accurate estimation is the
key to proper pricing

7. Perks & Deals
 You may allow discounts
for longer bookings
 However, discount is not
just a sales promotion
technique
 It is part of your pricing
strategy too
 Before allowing a deal,
assess its impact on your
profitability

8. Use technology – Automatic or
Dynamic Pricing...
 Software is available for
conducting competitive
analysis
 It can pull out prices from
listing websites
 It can even analyze cost
data
 Using all such data, it can
automatically come up with
price per night
 This can be made dynamic
by feeding in more factors
such as seasonality
 It can keep your listings up
to date as well
 Accessing software will
cost you one-time or

9. Thanks...
Please visit
RentalTrader.
com to book
your next
vacation