Why Choose Luxury Residential Resorts Revenue Strategy
Demand for short-term rentals continues to rise as travelers are becoming increasingly familiar with and comfortable booking short-term rentals for leisure or business travel.
Short-term rentals are often operated in competitive real estate markets to minimize vacancies and maximize profits. There are many factors that affect how a nightly rate is determined, such as supply and demand, weather, school and holiday schedules, and overall changes in global economy and tourism. Owners compete with other rental owners and hotels in the area, and may deal with consistent vacancies during the off-season. Thus, it is crucial to factor the supply-demand equation, competition, seasonality, and other external trends into annual costs and set prices accordingly. This is also where our expertise comes in.
Our revenue management team aims at selling the right accommodation to the right customer at the right price at the right time.
Through proper revenue management, we offer accurate demand forecasts — an estimate of customer demand using a specific period. We also offer better understanding of guests’ booking behavior. With constant analysis, we can determine when guests are likely to book, which channels they use, which products/experiences they prefer, and their reasoning for visiting at certain points throughout the year. As we analyze our customer base and market trends, we establish competitive rates to maximize your revenue over the long term.
Our revenue management team is also responsible for managing packages and channels as well as the relationship with online travel agencies such as Airbnb, Expedia, and Booking.com. We work closely with our marketing department, providing feedback to adjust our marketing and pricing strategies as needed.
We also practice Allocation on Arrival.
A common practice used in hotel management, with Allocation on Arrival (AOA), bookings are allocated to specific accommodations upon or shortly prior to the guest’s arrival date. This method of revenue and occupancy maximization is something quite revolutionary within the short-term rental business. This helps us to maximize resort occupancy. We also market each of our homes as specific accommodations on websites such as Airbnb, VRBO, and Booking.com on “by the door” listings.
By combining these strategies, we are able to deliver a much better market segmentation, with most reservations confirmed through our own internal channels.