Whether it’s a concert, a sporting event or a cultural event in the broadest sense of the word, these are all events that boost the world of hospitality! As a vacation rental owner or manager, how can you implement a pricing strategy around popular events to develop your business and increase your revenues? Tips and tricks!
Taylor Swift’s impact on the US economy
On March 17, 2023, artist Taylor Swift launched her stadium tour “The Eras Tour” in Glendale, USA. After 40 sold-out dates and more than 3 hours of shows every night, it’s time to take stock! Long story short, her tour benefited the American economy.
According to projections by market research, “The Eras Tour” could generate $5 billion in consumer spending in the U.S. alone. Staggering figures!
The Eras Tour across the World in 2024
In 48 dates from May 9 to August 17, 2024, Europe will Shake it off. Taylor Swift will be in the UK and Ireland for 16 dates in total in stadiums + 9 nights in Canada. Guess the number of attendees? Many!
Naturally, a percentage of them will opt for short-term rentals for their stay. OTA Insight, a company specializing in data intelligence for the hotel industry, has already predicted that European cities are likely to benefit from the same economic windfall as American cities before them.
You better be prepared with your vacation rental pricing strategy if you have a vacation rental in or around London, Edinburgh, Liverpool, Cardiff, Dublin, Vancouver or Toronto! But Taylor Swift isn’t the only driving force behind the hospitality sector.
Events: a catalyst for boosting your rental business
The impact of the pop icon Taylor Swift on the vacation rental world is only one example of what can happen when you take big events into consideration.
If your short-term rental isn’t located near a stadium starring Taylor Swift, don’t panic – you can still capitalize on other events to boost your business. There are still a multitude of events throughout the year that attract large numbers of visitors and tourists such as:
- Concerts and live shows (and events) all over the country
- Cultural events
- Fairs
- Trade shows
- Sports events
Why implement an event pricing strategy?
As an owner or manager of vacation rentals, it’s always worthwhile to develop your business and make it more attractive. By implementing a pricing strategy around key events, you can :
- Maximize your revenues: By adjusting rates around local events, you can maximize your revenue by taking advantage of increased demand during these periods.
- Fill the calendar: Seasonal rentals can sometimes experience down periods outside the peak tourist season. By aligning your pricing with local events, you can reduce vacancy periods and increase your property’s occupancy rate.
- Stay competitive in the market: By following an event-driven pricing strategy, you can stay competitive in the market by offering competitive rates during times of high demand.
- Better forecasting: Event-based pricing allows you to better plan and forecast bookings, making it easier to manage your vacation rentals and resources.
- Offer a personalized travel experience: Special rates or event-based customization of your vacation rental can help create a unique travel experience.
- Position yourself as the ideal vacation rental for a traveler’s stay: Making your property an ideal location for travelers attending local events allows you to target a specific clientele and potentially build loyalty.
- Optimize your management costs: Dynamic pricing tools can help you reduce management costs by avoiding slower periods when marketing efforts are needed.
- Make data-driven decisions: By using data on past events and booking trends, you can make informed pricing decisions to improve the profitability of your vacation rental.
- Respond to traveler preferences: Travelers often seek rentals conveniently located for specific events. By offering tailored rates, you’re catering to these travelers’ preferences, which can increase demand for your property.
How do you set up an effective pricing strategy for your vacation rental?
You have two options:
- Manually: you can manage your pricing strategy yourself on your various booking portals, defining your prices for key periods: weekdays, weekends, vacations etc.
- Automatically: via dynamic pricing solutions. These solutions automatically adjust rental prices in real time according to your rules and various factors such as demand, availability, local events and market data, ensuring that owners maximize their revenues by optimizing rates. Your prices are thus always sure to be competitive.
Depending on the business objectives you’ve defined for your vacation rental business, you can opt for one or the other.
What revenue management solutions are available on the market?
There are several dynamic pricing solutions on the market for vacation rental owners and managers.
- PriceLabs
- Beyond Pricing
- Wheelhouse
- Smartpricing
Smoobu lets you easily integrate these solutions via an API connection. So you can use these two complementary solutions easily and seamlessly, while enjoying all the benefits they have to offer!
Try Smoobu and connect your dynamic pricing solution
If you’re not already using Smoobu Channel Manager, take advantage of a free, no-obligation 14-day trial and start synchronizing your booking schedules automatically and in real time. Connected to a dynamic pricing solution, our Channel Manager lets you make the most of your vacation rentals!
Get ready to develop your revenues while streamlining your day-to-day operations!
Table of Contents
- 1 Taylor Swift’s impact on the US economy
- 2 Events: a catalyst for boosting your rental business
- 3 Why implement an event pricing strategy?
- 4 How do you set up an effective pricing strategy for your vacation rental?
- 5 What revenue management solutions are available on the market?
- 6 Try Smoobu and connect your dynamic pricing solution
