Coronavirus: Tips for adjusting your Revenue Management strategy
For the most up to date information on Coronavirus related trends we are seeing in your market and tips and tricks on how to manage your listings during these times, head to the Coronavirus Page on our website.
Pricing Tools at your disposal
While there are many factors to consider when updating your overall revenue management strategy, pricing strategy in the short term can have an immediate impact on your business. Here are some tips and tricks you can use in Beyond Pricing specifically to help you maximize the performance of your listing.
Increase Last Minute Discounts: Adding Last Minute Discounts can help address the short term occupancy brought about by cancellations.
Lower your Minimum Price: We will never push a price below your Minimum Price, so we recommend re-examining where your Minimum Price is currently set.
Use Manual Overrides: Use manual overrides to lower prices to gain short term occupancy.
Lower your Base Price: Lowering your Base Price lowers the pricing for every day for the next year. As a general rule, we discourage you from adjusting your Base Price dramatically in the short term, as this may leave your listing underpriced in the future. Given the potential for the Coronavirus outbreak to result in a prolonged low period for the industry, a lower Base Price may be a more viable option for the rest of the year.
Add Seasonal Maximums: Adding Seasonal Maximums will cap pricing which may help drive occupancy short term.
Strategies beyond just pricing at your disposal
Pricing isn’t the only lever that you can pull as a part of your overall revenue management and marketing strategy. If people aren’t traveling, then pricing alone will not be enough. However, addressing some of the core concerns that people have can play a key role in putting your customers at ease, and stimulating demand for your vacation rental business.
Flexible Cancellations on New Bookings: Offering the ability to move the reservation penalty-free to a later date, or apply to amount spent as a credit for future stays (similar to what airlines have introduced) can give travelers peace of mind to book today.
Highlighting Cleaning Procedures: Putting details about your cleaning procedures front and center can give travelers additional peace of mind that they’ll be safe staying in your property.
Marketing to Drive-To Customers: During these times many people want to get away from big cities to escape their small apartments and enjoy more space. Marketing to nearby drive-to customers can be a great option. Bonus: many vacation rental markets are not as dense as big cities, making social distancing easier and safer.
Discounts for Longer Stays: During these times, some travelers may be looking for longer stays in order to see out any periods of isolation in one place. Offering a percentage discount for longer stays can broaden the customer base looking at your units and help attract more bookings.
Lowering Minimum Night Stays: Lowering your minimum night stay restrictions will mean you show up to more travelers in search results on online booking sites. More eyeballs = more potential demand.
Discounted Gift Cards Towards Future Stays: If you have a loyal repeat customer base, consider offering them discounted gift cards (e.g. $1,000 travel credit for $800) that can be applied to future vacations once this situation passes.
With more news developing every day about Coronavirus, it’s important to stay on top of how it will realistically impact your business. Be sure to utilize every tool in your revenue management toolbox (not just pricing) to maximize your strategy during periods of low demand in your market.