One of the biggest challenges you’ll have as a holiday let owner is setting your rental rates, alongside getting bookings that is! However it is easier if you focus on a few important points as outlined below:
1. Set lower rates when you start – and be prepared to adjust them
Getting started is a challenge and you’ll have no reviews that provide non-biased information to help people see what your property is like. Therefore lower rates can attract your first few guests more easily. In addition you should consider other factors such as high and low season adjustments. If times are tough you might also think about reducing rates to entice more potential guests to book.
2. Consider discounted rates for longer rentals
Sometimes a guest may require a longer stay – a month or two – in your property. Offering a discount in this situation is ideal as it books up your property for longer. You also don’t have to find several week long bookings to cover the same period.
3. Offer shorter cheaper breaks as well
Your standard stay is likely to be a week, however you should also consider offering midweek breaks as well as long weekends – remember some people don’t have the time to be able to go away for an entire week! Just be sure to factor in any additional cleaning costs if necessary.
4. Offer an all-in charge
Things can get complicated for you, and frustrating for your potential guests, if you have a flat fee for renting your holiday let, and then have a list of add-ons. With an all inclusive price you can make life – and the booking process – much easier for your guests.
5. Know what the competition is charging
This will help you gauge the right price to charge for your holiday rental property. You can lower your prices to be more competitive but don’t overdo it as it may produce the wrong effect. Holiday lets that are too cheap can be as off putting as ones that are too expensive.
6. Know your key selling points
Your key selling points can help you attract more bookings. Once you have researched the competition and set your prices, you can show your potential guests how your property differs from (and is better than) your competition. This should help you bring in more bookings.
7. Keep things simple
There will be reasons to set different prices – such as high and low season and longer and shorter stays. However when you set the prices make sure you keep things as straightforward as you can. The more complex it is the harder it is to understand it. If people get frustrated trying to work out the cost of a week’s stay they will be more likely to go elsewhere.
8. Make sure people can book in advance
While some people love booking last minute holidays, others book into a holiday rental months in advance. Make sure you have rates in place for at least the next year, ideally 18 months. This will make life easier for those planning ahead.
All these tips will help you get the most from your holiday let so you can receive more bookings over the course of the year.