It's almost time to "say goodbye" to the 2015 season:- Owners & Guests alike are already thinking forward to 2016... which also means starting to work on the new season's pricing (groan.) It can be a difficult task to ensure pricing isn't too high, or too low - so here's a few tips to help:
- Always check the park's pricing! Do a search on their www for your available dates & see how much the Holiday Company is charging for a similar Holiday Home to your own. ALWAYS go lower! A guest is highly unlikely to book a private rental that is more expensive than booking through the park direct! Bear in mind that "passes" will always be included in their bookings as standard, & sometimes a linen pack - so if these are at an additional cost in your rental, your "end-price" still needs to be lower than the park's charges.
- Ask other Owners for advice! Speak to other renting Owners on your park & get a rough "feel" for what the average pricing is. Most will be happy to discuss - but "UNSPOKEN LAW" amongst all Owners - is NEVER to "UNDER-CUT" each other! Don't purposely quote a cheaper price to a potential guest just to "secure a rental" :- your reputation amongst other Owners is worth way, way more than a "cheap rent!"
- Don't undersell yourself! Calculate all running costs & ensure you don't rent at a loss! It's very tempting to run a "special offer" at the end or beginning of seasons, but if it works out that your costs equate to, or are more, than your rental price - sometimes it works out more viable to leave the Holiday Home empty! You need to consider the actual "rental cost" to you:- include potential gas & electricity usage for the duration of stay, cleaning costs, along with "wear & tear" on the Holiday Home + (sadly) potential "damage" issues that may arise...
- Don't oversell yourself! You may think your Holiday Home is worth £400 a week in May, but if pricing for your area in similar Holiday Homes is around £250 - you will be the one left with dates to fill! Be realistic with your pricing & you are far more likely to get the bookings!
- Look at seasons! Don't forget that pricing varies through the year, you can charge a different rate for "Low", "Mid", "High" or "Peak" seasons... but again remember that Guests will expect cheaper pricing in low season - which is generally when the "rental cost" will be more to you in utility costs with heating & lighting etc. Remember that ALL school holidays + Public ("Bank") Holidays are classed as "peak" by the Holiday Companies .... so do the same!
- Be Flexible! Just because you have decided at the beginning of the season that your rentals in August will be £600, doesn't mean they have to stay at that figure! Watch pricing for your area through the year & alter yours accordingly if necessary!
- Publish your pricing? Individual preference! Some Owners will show all pricing on advertising, some will only show "special offers" & some will show none, asking for personal contact to discuss. Biggest "fear" with publishing pricing amongst Owners is the "ugly-under-cut" again, so go with whatever you are comfortable with!
- Don't be "persuaded!" You will always get potential guests asking for cheaper pricing! If you have set your price at £250 & the guest says they can get it elsewhere for £200, so if you "match" the price - they will book with you: ignore! Stick to your guns & go with that very reliable "Owner-gut-feeling!"
- Set a level! Always have the lowest figure you are prepared to rent for, for any given time of the year & don't go beneath it! If you calculate this figure carefully, taking into consideration all of the points above:- that is your "base-line" to work from. Offering a break at £80 when you know it will incur costs of £130 is just silly! Not even worth doing to build up your rental feedback, as it may turn out to be a not-so-successful rental which could cost you dearly in financial terms!
- Use your Holiday Home! Don't forget, if you have "empty dates" - there's always the option of using them yourself!
ETK wish you luck in preparing for a successful 2016 season