In 2023, over 13.3 million visitors descended upon the Great Smoky Mountains National Park, Gatlinburg's greatest attraction. With such annual numbers, it's safe to say that the city has a thriving vacation rental market.
As a vacation rental property owner, it's not enough to just settle for the bookings you'll get throughout the year. What are you doing to maximize your revenue? Options such as investing in more rentals and maximizing occupancy rates are ideal, but you have left a more effective one on the table: peak season pricing.
When the busy season rolls around, which is usually during the summer, it's time to take maximum advantage, but you have to do it the right way. Here's how:
Settle on Rate Adjustment Techniques
Price increases in the travel and hospitality industries during peak seasons are an age-old practice. If you've tried buying an air ticket on Thanksgiving, you know how steeply the prices can rise!
However, this doesn't mean you should unreasonably hike your rates during the busy season. Although the demand for short-term rentals is highest at this point, most consumers are still price-conscious. They expect to pay more than the regular rates, but not unreasonably more, unless they have no other choice.
This is why you need to have rate adjustment techniques. A safe strategy is to go along with the market. If similar properties in the area have increased their rates by 10-20%, stick within that range. Going higher than that can result in reduced bookings, and going below will work against your efforts to maximize income.
That being said, don't be afraid to go above the range if you can justify the price. For example, if you have recently added a new amenity, such as a swimming pool, a substantial price hike can be justified, especially during the summer.
Let Booking Platforms Handle It
Airlines use booking platforms with technology that enables surge or dynamic pricing when needed. Vacation rental platforms use similar technology.
For instance, if your property is listed on Airbnb, you might have noticed that the nightly rate changes from time to time, and it's certainly higher during peak seasons. That's because these platforms utilize dynamic pricing technology that monitors demand and adjusts prices accordingly.
So, if your property isn't listed on any third-party platforms and you would like to take advantage of dynamic pricing, it's time to consider putting it on Airbnb, VRBO, Booking.com, or other listing platforms.
Implement Minimum Length of Stay (MLOS)
Although there isn't a shortage of guests during peak seasons, implementing a minimum length of stay will help you maximize revenue while reducing operating costs. When a guest stays longer, check-in activities like deep cleaning that cost time and money are minimized.
When implementing MLOS, be reasonable. Two or three nights is usually fine, but you can adjust depending on the booking trends you're seeing.
Peak Season Pricing Strategies That Work
Peak season pricing is key to maximizing your income as a short-term rental property owner in Gatlinburg, TN. These strategies will help you take advantage of the hot seasons, but you'll do even better if you let a professional manager handle the job.
PMI Smoky Mountains is a local vacation rental management company that's dedicated to the success of property owners like you. Our many 5-star reviews speak to our service delivery excellence.
Get in touch with us to start enjoying the PMI difference.
