February 4, 2022
Pricing Optimization For Urban Market Short Term Rentals
Optimizing short-term rental pricing in urban markets is a unique challenge, but not an unfamiliar one. By paying close attention to the type of guest that tends to book these rentals, you can capture bookings and keep your ADR high without drastically increasing your rates.
Guests of urban vacation rentals are choosing their rentals for a different set of reasons than your typical visitor: they’re traveling for business, for a specific event, or for sightseeing. The rental itself may matter less than its proximity to local attractions or business venues. Guests may use an urban short-term rental as a launchpad for adventure, using it only to sleep and get ready for the next day.
Here’s how to optimize your short term rentals in urban markets:
Keep Your Booking Windows Short
Short-term rentals in urban markets tend to serve a more utilitarian function than your average vacation rental. These rentals are for business travelers, sightseers, and event-goers. In fact, bookings made a few weeks to a few days in advance may make up a bulk of an urban property manager’s occupancy.
So with the exception of major local events (for pleasure or business), it makes sense to keep your booking windows much shorter when adjusting your dynamic pricing. With enough fine-tuning, you could feasibly turn a tidy profit just off of last-minute bookings!
Think About Your Remote Workers
Since a majority of short-term rental bookings in urban areas are made by business travelers, it pays to keep them top of mind when designing and furnishing your vacation rental.
Spend a little extra time and money creating a highly functional and comfortable working area, with a good office chair and a nice desk. Make sure your internet connection is top-notch. And if the rental happens to have a killer view, consider making it the focal point of the working space. Adding a small, thoughtful gift like a local bottle of wine or a small stationery set can really seal the deal.
You can also market coveted building amenities such as a conference room available for rent, outdoor patio space for post-conference happy hours, a workroom or business center with a printer, a fitness center, or a coffee bar.
Sell the Nearby Attractions
Since your short-term rental may not be the main focus of a guest’s stay, optimize your short-term rental pricing by adjusting your rates based on the location of the vacation rental. Business travelers will look for close proximity to convention spaces where conferences are held, or for rentals close to the local offices. Leisure travelers will focus on specific event spaces (such as concert venues, theaters, or outdoor arenas) or major tourist attractions (think theme parks and landmarks).
Price for Business AND Leisure
One of the best ways to optimize your short-term urban rental pricing is to make your rates approachable for business and leisure travelers. Hitting this sweet spot and making minute, day-to-day adjustments to your rates calendar can help get your rental in front of the right audience at just the right time. The revenue management team at Rented can help you set your rates, using a combination of data and market knowledge to make informed decisions and last-minute adjustments that’ll keep your rates competitive. And with Rented’s Automated Rates Tool changes to your portfolio can be made in just a few clicks. Reach out to one of our revenue management experts to discuss optimizing your short-term rental pricing in an urban market here.