How to create a minimum stay restriction strategy (Ep589)
Summary
This podcast episode discusses how to set minimum night stay restrictions to maximize revenue. The speaker explains how factors such as seasonality, property size, and booking window affect minimum stay decisions, with specific considerations on when to apply and release restrictions.
Key Insights
- •The speaker advises that high-demand dates may benefit from minimum stay restrictions to maximize revenue, as well as the importance of understanding the booking window for a specific property type to determine when to remove restrictions.
- •Seasonality should guide the application of restrictions; high seasons often warrant more restrictive stay lengths.
- •The booking window, when guests typically book, influences when to drop restrictions. A shorter booking window for a 1-bedroom unit might lead to dropping restrictions sooner than for a 5-bedroom unit.
Action Items
- ✓Hosts should analyze their market's seasonality and booking window to inform their minimum stay strategy.Effort: mediumImpact: medium
- ✓Consider the size of your property when determining restrictions; larger properties may have longer booking windows and thus different restriction strategies.Effort: lowImpact: medium
Tools & Resources
- →Wheelhouse: The podcast references Wheelhouse as a pricing tool.
Common Mistakes
- ⚠Be cautious when applying both rate premiums (like a 30% increase) and minimum stay restrictions, as it could lead to being overpriced, potentially resulting in fewer bookings.
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Curated by Learn STR by GoStudioM