Gatlinburg, TN is an excellent vacation destination to rent a cabin and experience the Smoky Mountains. The cabins go way back, back before Gatlinburg was a tourist destination. The first cabin to be built in the area stands at the Gatlinburg Welcome Center.
The city is all about cabin tourism, and that means a real estate investor can make a pretty penny here. That also means vacation rental income could fluctuate due to intense competition. What vacation rental pricing strategies do you need to maximize rental profits?
Today we'll look at:
- Gauging the competition
- Dynamic and seasonal pricing
- Spicing it up with special offers
We'll give pricing tips for rentals to make yours irresistible. Follow along to figure out how to boost bookings.
1. Base Rent on the Competition
With inflation high and wages low, people are trying to save more money than ever. It's even led to many vacationers taking "nearcations" over typical out-of-state vacations, according to a survey by Outdoorsy. The point is that price is going to be a massive factor in why someone chooses your place, specifically.
Take a look at competing vacation rentals in the area. When employing your vacation rental pricing strategies, note things like:
- How many bedrooms they have
- Which sort of property they are
- Their neighborhood
- Their proximity to tourist spots
- Their amenities
Examine how all these factors influence the prices. Then, you can break up nearby properties into categories. Doing so helps you establish where your property sits, and how to price it.
2. Shift Pricing Based on Season and Demand
It wouldn't make sense to price your rental the same for every day of the year. Roughly speaking, there are two vacation periods: high season and shoulder season. The former has high prices and high occupancy, while the latter is the complete opposite.
It's critical to adjust pricing as the shoulder season deepens. At this time, customers expect to see discounts and better deals. Naturally, they aren't going to respond well to a rental that costs the same as it would in the summer.
3. Consider Special Offers
When you are priced the same, at the same seasons, it's hard to rise above the competition. You might have to go a step further. Adding special incentives to your place makes it stick out -- in a good way, of course.
The offers you include will depend entirely on what works with your ROI. Some vacation rentals offer extra free nights for long occupancies or discounts with local businesses. Others might make existing paid amenities free, such as food in the fridge that you sell per unit.
Hiring a property manager can help here. They'll know which offers work without gouging profits.
Find Other Vacation Rental Pricing Strategies
Vacation rental pricing strategies are a must in a tough, congested vacation rental market. Start by comparing your rentals to the competition and finding out where they sit. Then, use dynamic year-round pricing and include special offers where possible.
PMI Smoky Mountains is the best option in Gatlinburg to manage your portfolio. Just take a look at our past three years with consistent five-star reviews, and you'll know what we're capable of. Then get a free consultation and watch your portfolio sing.
