In a competitive landscape, Airbnb hosts, Vrbo hosts, and property managers must keep up with summer trends and guests’ preferences to stay ahead of the competition and make the most of this summer 2024.
At Beyond, our unrivalled access to holiday rental market data gives us an early view of what summer looks like for hosts and managers across the UK. One of the most notable trends to keep in mind for this summer is the average booking lead time. This indicator will help property managers and hosts establish advanced pricing strategies and successfully navigate last-minute bookings.
Booking Lead Time Drop 10%
Guests now book their stays 33 days in advance, compared to 37 days in the previous year. This decrease reflects a trend towards spontaneous and flexible travel plans. Factors contributing to short booking lead times may include:
- The desire for last-minute deals
- The flexibility afforded by remote work arrangements, enabling more spontaneous travel decisions
- Increasing confidence in travel safety measures
How To Adjust Your Pricing Strategy
Hosts and property managers need a more agile and dynamic approach to managing bookings and pricing strategies. Traditional models of setting prices months in advance and waiting for guests to book may no longer be as effective. Instead, the focus should shift towards understanding market dynamics in real-time and being prepared to adjust strategies on the fly.
At Beyond, you can leverage our industry-leading market analytics to understand booking and market trends specific to your market. Instantly see market-specific booking trends, effective advertising channels, standout amenities, and more. Learn more about Market Insights here.
5 Strategies to Optimise Your Pricing Strategies This Summer 2024
1. Leverage Revenue Management Systems
Investing in an advanced revenue management system is more critical than ever. These systems analyze vast amounts of data, monitor market trends, and adjust pricing in real-time to optimise revenue automatically. By leveraging technology, you can ensure that your pricing strategy is responsive to changes in guest booking behaviour, capitalising on last-minute demand without underselling your property in anticipation. Better yet, using an advanced revenue management system can even predict changes based on consumer search data, automatically updating your pricing before you get a bad booking.
2. Flexible Pricing Strategies
With guests booking closer to their travel dates, having a flexible pricing strategy that can adjust based on occupancy levels, time of year, and even the day of the week is key. Avoid the temptation to discount your property too far in advance. Instead, monitor booking patterns and adjust prices to reflect the demand as it develops. Consider implementing seasonal and time-based pricing strategies to maximise revenue while accommodating spontaneous bookings.
3. Enhanced Communication
Given the shorter decision-making timeline, it is vital to ensure that potential guests can quickly find information about your property and book without hassle. Streamlining the booking process, from enquiry to confirmation, can make all the difference in capturing those last-minute reservations.
4. Offering Incentives for Early Bookings
While the trend is towards last-minute bookings, offering incentives for those who book early can help balance your booking calendar. Early bird discounts, special amenities, or flexible cancellation policies for advance bookings can encourage guests to commit sooner.
5. Stay Informed and Agile
Staying informed about market trends and guest preferences is essential. Pay attention to travel trends, both globally and within your specific market, and be prepared to pivot your strategies as needed. Agility in responding to the market is a competitive advantage.
Again, this is where a revenue management system comes in! With features like Health Scores and a wealth of market data, these solutions can help ensure that you always know what is happening in your market.
In essence, modern revenue management for short-term rentals involves so much more than a series of levers managers need to pull. It entails a holistic approach, leveraging integrated solutions to enhance overall portfolio performance. Beyond's revenue management solution stands out as a premier technology provider, offering tools for revenue optimisation, strategic insights, and profit expansion to drive business growth effectively.
Conclusion
The short booking lead times in the holiday rental industry are a clear signal that flexibility and adaptability should be at the core of your operational strategy. By leveraging technology, employing flexible pricing strategies, and staying attuned to market dynamics, property managers and hosts can successfully navigate these changing guest preferences. Remember, the goal is not just to react to market changes but to anticipate and strategically plan for them, ensuring sustained success in a rapidly evolving industry.
Ready to see how much more revenue you can make with Beyond? Sign up today!
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