Last-Minute Pricing Strategy Playbook
Summary
This article from PriceLabs provides a playbook on last-minute pricing strategies to avoid panic-discounting and maximize revenue. It emphasizes using OTA promotions, optimizing listing content for visibility, and strategically adjusting minimum length of stay (LOS). The article also highlights the importance of data-driven automation, especially with PriceLabs, to capture revenue, target higher-value guests, and understand market trends.
Key Insights
- •The most effective revenue managers automate using a Cascading Minimum Stay Strategy.
- •Consider experimenting with a 5-20% reduction in your minimum nightly pricing during the low season. However, your minimum price should ideally be 20-30% less than your base price to maintain profitability.
- •Using built-in “Last Minute” promotion tools on platforms like Airbnb and Vrbo, can boost search ranking and provides a psychological appeal to guests.
- •More guests are choosing longer stays to combine work and leisure.
Action Items
- ✓Use the merchandising tools provided by OTAs (Online Travel Agencies) for promotions rather than manual price cuts.Effort: lowImpact: medium
- ✓Use PriceLabs Listing Optimizer to evaluate your listing score and understand which areas need improvement to improve your visibility.Effort: lowImpact: medium
- ✓Consider strategically adjusting your minimum length-of-stay (LOS) restrictions when you have last-minute availability.Effort: lowImpact: medium
Tools & Resources
- →PriceLabs Listing Optimizer: Use PriceLabs Listing Optimizer to evaluate your listing score.
- →PriceLabs Market Dashboard: Use PriceLabs Market Dashboard To Understand Market Trends
- →PriceLabs Dynamic Pricing: Use PriceLabs Dynamic Pricing.
Common Mistakes
- ⚠Panic-discounting can devalue your vacation rental brand, attract lower-quality guests, and ignite a “race to the bottom” that hurts your entire local market.
More from Pricing & Profitability
This article discusses Kansas City's high occupancy rates compared to other World Cup host cities, raising questions about the effectiveness of efforts to increase short-term rental availability. It implicitly touches on market trends and the impact of major events on the STR market. The article likely explores whether increased rental supply can meet demand while analyzing the city's approach to STRs.
Realtor.com's report on best mountain towns for Airbnb returns reveals key locations for STR investment. The analysis likely includes data on occupancy rates, ADR, and RevPAR to identify profitable markets. Understanding these trends helps hosts optimize pricing strategies and choose lucrative destinations.
Airbnb is offering a $750 incentive for some hosts in Georgia during the FIFA World Cup, potentially boosting occupancy and profitability. This program seeks to capitalize on increased demand from the international event, offering financial benefits to participating hosts. Learn how to qualify and leverage this incentive for your STR.
Curated by Learn STR by GoStudioM