4 tips for pricing perfectly for your vacation rental

Have you ever wondered how to determine the renting price for your vacation rental? Do you think that your established price is not the right one? What is your perfect price?

Establishing the ideal price for your vacation rental is a key step to take before you advertise your vacation rental. It must be attractive and irresistible to potential guests as well as fair and profitable for the success of your business. 

In this blog, we explain you what are the main aspects to take into account to calculate the perfect price for your vacation rental. 

Are you ready? Let’s get started! 

Calculate your vacation rental price step by step

Cover your fixed costs

First of all, find out the minimum price that allows you to cover all your fixed costs. It is also important to estimate the variable costs that may be associated with each booking (e.g. laundry, cleaning, etc.). 

This is a basic step for pricing your vacation rental as it will allow you to calculate a final price that covers your expenses and brings you profits. In short, a good starting point to establish a fair price for both guests and owners. 

Other calculations that we recommend you to make in more advanced stages are known as KPI’s for your vacation rental, these will allow you to make decisions on how to increase the profits and performance of your business. 

Make a forecast of days rented

It is usual not to have your vacation rental booked during all the days of the month. For this reason, once we have established the fixed and variable monthly costs, we recommend you to make a forecast of the number of days you will have the property rented per month. 

Bear in mind that this may vary depending on months corresponding to a low or high season. For example, if the month of February in Cordoba is low season and you make a forecast of being able to rent your property for only 12 days, your best selling price would be the price established in the first point/12 days =x €/day.

Check the prices of your competitors

It is as simple as entering the different booking portals such as Booking, Airbnb, etc. Here you will be able to find all your direct competition and find out their prices.

From here, select those accommodations in your area (hotels, vacation rentals, hostels…) that are part of your competition. Note down the prices they have set for midweek and weekend stays, as they are usually different. 

Another tip is to use this competitor research to gather all the necessary information and find out how you can differentiate yourself from them. If you can stand out from the crowd, you will be able to get more bookings and more revenue from your vacation rental. 

For example, one way to differentiate yourself is to offer personalised experiences to your guests for an extra charge. For example: Welcome packs, early check-in and late check-out, etc. 

Start slowly 

If you have just started your vacation rental business and are preparing your first advertisement we have a tip for you. 

For your first publication we recommend you to focus on getting the first booking and a good rating. This will help you to gradually gain notoriety on platforms such as Airbnb. In short, to attract your first guests we advise you to set a slightly lower price than your competition. 

Once you manage to capture the attention of a few guests, you can start to gradually increase your price. 

In general, pay close attention to your competition and make all the necessary predictions. Also, don’t forget to focus on knowing your type of customer and adapt the price to their origin, holiday season, etc. 

Post-pricing tips: All booking payments online

Once you have set the ideal price, you have the option to manage your property remotely in an easy and convenient way. This includes online check-in, allowing the guest autonomous access to the property and making all booking payments online. 

A way to increase your bookings as well as save time and money with every booking.