In the vacation home world, pricing is surely a delicate topic. Many vacation owners are of the belief that if they price their vacation home higher, they will earn more profits. They hold on to their belief even when they have extremely low or no bookings. They feel that if they drop their rates and make it competitive, they will lose money.
Their impulse to charge high is surely understandable. But according to various researches, often high prices lead to the opposite result. Vacation homes that are competitively priced make much more money that the rental homes that hold tight to their higher rates, no matter the circumstance. So, it is extremely crucial to price your vacation home rightly to get more bookings throughout the year and achieve your annual income goals.
Read on to know the 3 crucial pricing mistakes to avoid.
Thinking about short term profits
The major reason why vacation home owners price their property high is thinking about achieving their short term gains. The major point which vacation home owners are unable to understand is that there is significant different between asking for more money and getting more money. As aforementioned, the Kissimmee vacation rentals that are charged more that other competitors get fewer bookings. Thus, even though you may be charging more money than the competitors, still your annual income will be lower than your competitors. So, consider long term goals and price your vacation rental accordingly.
Competing with wrong vacation home owners
It is crucial to place competitive game with those vacation home owners whose property is similar to yours. If you try to compete with vacation rental owners who own 5 room property as compared to your 2 room property and wish to charge similar pricing, you will end up losing your guests.
Adding your own rules
You may have a special facility in your rental home like pool or Jacuzzi and charge significant amount of extra money for the amenity. It can actually be a mistake on your part. Even though you feel that your offered amenity is worth the price, your guests may not share your opinion. So, be extra sure, check out the vacation homes with similar amenities and consider their pricing to come up with a sensible pricing which your guests are willing to pay.
Keep dynamic pricing for your vacation rental and enjoy significant bookings for your vacation homes in Orlando throughout the year!
Their impulse to charge high is surely understandable. But according to various researches, often high prices lead to the opposite result. Vacation homes that are competitively priced make much more money that the rental homes that hold tight to their higher rates, no matter the circumstance. So, it is extremely crucial to price your vacation home rightly to get more bookings throughout the year and achieve your annual income goals.
Read on to know the 3 crucial pricing mistakes to avoid.
Thinking about short term profits
The major reason why vacation home owners price their property high is thinking about achieving their short term gains. The major point which vacation home owners are unable to understand is that there is significant different between asking for more money and getting more money. As aforementioned, the Kissimmee vacation rentals that are charged more that other competitors get fewer bookings. Thus, even though you may be charging more money than the competitors, still your annual income will be lower than your competitors. So, consider long term goals and price your vacation rental accordingly.
Competing with wrong vacation home owners
It is crucial to place competitive game with those vacation home owners whose property is similar to yours. If you try to compete with vacation rental owners who own 5 room property as compared to your 2 room property and wish to charge similar pricing, you will end up losing your guests.
Adding your own rules
You may have a special facility in your rental home like pool or Jacuzzi and charge significant amount of extra money for the amenity. It can actually be a mistake on your part. Even though you feel that your offered amenity is worth the price, your guests may not share your opinion. So, be extra sure, check out the vacation homes with similar amenities and consider their pricing to come up with a sensible pricing which your guests are willing to pay.
Keep dynamic pricing for your vacation rental and enjoy significant bookings for your vacation homes in Orlando throughout the year!
