Orlando is one of the top tourist destinations in the world. People travel from across the globe to see Disney World, Universal, and other epic attractions.
In 2022, Orlando hosted more than 74 million visitors. This was a 25% increase from the year prior and a near-return to pre-pandemic levels.
With so many visitors each year, short-term rental property owners stand to benefit. There is a consistent and strong demand for vacation rentals.
Read on for a comprehensive guide to vacation rental pricing strategies. Explore how to keep your short-term rental occupancy rates strong with competitive pricing.
What Factors Drive Rental Pricing?
There are several factors that impact rental pricing. You cannot keep your daily or weekly rate flat all year and expect to have success. Instead, you must consider these factors and adjust accordingly.
For example, the time of year has a major impact on rates. While Orlando has a short offseason, there are still short periods where demand is not as strong. After the holidays, the months of January and February fall into this category.
Local events also play a role in establishing vacation rental demand. Visitors flock to the city for an Orlando Magic playoff game or the Food and Wine Festival at Epcot.
Length of stay affects the price as well. Longer stays are rewarded with a lower daily rate. The intention is to book as many days throughout the year as possible by offering more favorable rates.
Lastly, competitors' pricing has a significant impact on rental pricing. If demand is on the weaker side, you cannot have competitors undercut your pricing and take away tenants.
What Is a Short-Term Rental Market Analysis?
A short-term rental market analysis is a service offered by property management companies. They will take a comprehensive look at your property. This includes a review of the number of bedrooms, bathrooms, and onsite amenities.
The analysis also covers competitors' pricing in the local market. The end result of the market analysis is a rental rate recommendation and other tips to help you maximize bookings.
What Is Dynamic Pricing?
Dynamic pricing is one of the best ways for property managers to set rental pricing. It is an algorithm that weighs the many factors that increase or decrease rates.
Dynamic pricing makes price adjustments each week. This includes up-to-the-minute analysis against current market factors like season, competition, and length of stay. The algorithm is integrated into the booking website and sets the rate automatically.
Are There Last-Minute Vacation Rental Deals?
Last-minute deals are a great way to attract tenants. Not every vacationer is a planner. Some decide to travel on a whim.
You can win these tenants over by offering huge discounts. Remember, filling the vacancy at a lower rate is better than collecting no revenue at all.
Your Guide to Vacation Rental Pricing Strategies
You are now ready to price your vacation rental. Strategies like dynamic pricing or using short-term rental market analysis are effective.
PMI Platinum FL has been successfully performing these strategies for their clients. If you need assistance executing vacation rental pricing strategies, contact us at PMI Platinum FL to speak with an expert.
