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In our latest collaboration, Key Data joined forces with Rev and Research for an 'Ask The Experts' session. This event focused on pressing questions surrounding the vacation rental industry, revenue management, and the tools needed for success. We're excited to share the insights gained from this session, offering valuable guidance for property managers looking to refine their strategies and boost revenue in the upcoming year.
Session Highlights
Below, we've summarized some of the key questions and answers from the session. For a deeper dive into the discussion, we encourage you to watch the full recording.
Navigating Listing Channels in the Vacation Rental Market
Understanding the nuances and profitability of various listing channels is crucial for property managers. While technology proficiency is essential, it’s more important to comprehend the dynamics of different Online Travel Agencies (OTAs), market conditions, inventory, and competition to make informed decisions. Understanding property performance on each channel and analyzing the costs and benefits of having your properties listed is crucial.
Key Data’s dashboard offers insights into your most effective marketing sources and helps compare channel performance.
Strategic Discounting for Maximum Occupancy
Proactive season segmentation and demand analysis are key to avoiding last-minute discounting. By analyzing peak and shoulder dates, property managers can better manage Average Daily Rate (ADR) and booking windows.
Your discount strategy is ultimately dependent on the season. The flexibility to discount in a peak month and still hit the revenue goal is limited compared to a shoulder month.
A great place to start is looking at the median booking window and ADR for the particular weeks you want to track. Find the sweet spot for ADR or booking window and compare that to both historical and market performance. If you're not on track, you may want to begin looking at your prices competitively. Once the actual booking window passes, you're in a position to start discounting.
Maximizing Revenue Management Tools Efficiency
To extract maximum value from revenue management tools, conduct regular audits and stay updated with your settings. Regular reviews and segmentation can help in spotting trends and adjusting strategies accordingly.
When you have 50 or 100 units, it’s hard to keep track of everything in your head, so start documenting your process. Spend 20-30 minutes twice a week diving into a few listings ensuring you are not overriding anything with recent changes. An example would be making sure you don’t have minimum prices set that are no longer applicable.
Creating segments within Key Data is an excellent way to group units and see trends over time. Use Key Data and your pricing tool to tie result-based actions to these groups.
Future Trends in Property Supply and Management
The next few years might see significant changes in the vacation rental landscape. With economic shifts, property managers may need to reassess their business models and differentiate their services. Staying informed and adaptable will
be crucial in navigating these changes.
For more personalized advice and strategies, feel free to reach out to the Rev and Research Team directly.