Although the visible effects of the pandemic seem to be subsiding, it’s understandable that many vacation rental property owners have many questions heading into 2023. This summer’s occupancy rate did take a slight dip, but that doesn’t necessarily mean demand has diminished. However, many may not consider that occupancy rates can fluctuate not only because of demand but also supply. Rates are affected by the overall number of short-term rentals, not simply how many heads are in the beds. In other words, as the number of available vacation properties increases, the occupancy rate decreases, even if the number of people renting remains the same or goes up. As a result, we’re developing new strategies for the 2023 short-term rental market.
Navigating the Post-Covid Rebound
The days of pent-up high demand are gone. All markets have opened and are in a post-Covid rebound. The game we’ll need to play in 2023 is occupancy. Although we see less overall demand than we did amid the pandemic, the desire to travel hasn’t diminished. The primary way to ensure increased occupancy rates is by offering the best options.
Increasing Occupancy for Short-Term Rentals
It’s no secret that travelers have more choices than ever. To ensure that we are one of their primary considerations, we’ll need to leverage time and ensure our prices align correctly to win early bookings. First, we’ll set a far-out premium to gather revenue before the regular booking times. As we enter those standard booking windows, we’ll want to be aggressive with daily rates and potentially undercut the market by five percent, leading to higher occupancy and increased revenue for you.
Homes typically have empty calendars at the beginning of the month, and we’ve seen the fire sales that can occur when the market holds higher rates for too long. We believe that by partnering an aggressive pricing strategy with robust marketing techniques, we’ll come out ahead in a highly competitive business space.