![]() ![]() One hotel may operate hundreds of rooms, each booked individually, while a vacation rental is booked as a whole. Hotels and vacation rentals, compared Booking and occupancy. Yet, more of them still operate traditionally, creating two starkly different products. Of course, today vacation rentals are looking more like hotels while hotels try to follow vacation rental trends. Specifics of revenue management for vacation rentals That’s because regardless of the hospitality umbrella they are both under, hotels and short-term rentals have a few distinct differences that will impact their RM practices. Yet they shouldn’t blindly derive pricing strategies from their neighboring hotels. Vacation rental businesses are in a similar position. Using RM practices and software is immensely important for hotels while they’re competing with each other and online travel agencies for the distribution market. ![]() These complex analytical tasks are typically done with the help of machine learning. They anticipate product demand based on seasonality, economic conditions, or your own past data ( demand forecasting) and automatically increase or decrease the price based on predicted demand and your business goals ( dynamic pricing). That’s what revenue management strategies do. Low or high season, a local event, day of the week, length of stay – those are just some of the things you should consider when adjusting your price. But the lead time is only one of the factors that impact product demand and, consequently, its price. You might sell it for cheap or even give it away to get on the customer’s side – just make sure that it brings value. Some revenue management tactics are obvious to many hosts – the closer the check-in date, the lower the price should be. Watch our video on the basics of revenue management in hotels ![]()
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