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How To Turn Vacation Rental Gap Nights Into Moneymakers

How To Turn Vacation Rental Gap Nights Into Moneymakers 1.0

Nars

CEO
Inner Circle
Nars submitted a new resource:

How To Turn Vacation Rental Gap Nights Into Moneymakers - Turn the gap between bookings into a revenue generator by mastering the art of extending guest stays

Vacation rental gap nights don’t need to be money losers. With the right tactics and toolkit, you can turn “the gap” between bookings into a revenue generator by mastering the art of extending guest stays. And you won’t need to drain your time and resources to do it.

Everything you need to know — including a ROI Calculator that shows how much money you can make from extended stays — is found in How To Turn Vacation Rental Gap Nights Into Moneymakers, the How-To Guide from...

Read more about this resource...
 

AlexC

Envoy
So here's a strategy we've tested on orphan days that is highly effective, but possibly off of strategy for some.

The concept is that we are trying to capitalize on the asset in the most profitable way, and I think this article did an amazing job of exploring how to ensure you keep a profitability focus as you make decisions on how to attract that extra night, and we did very similar programs to try to fill those days with some success, which at that point was all incremental $'s, so a fantastic addition to our processes.

After a while, we started to wonder if those nights were really worth the reduced value and if we could get conversion up, and almost as a thought exercise started thinking of other ways to use the space that might move the rental closer to true value if demand we normally didn't consider was considered so we could improve conversion at a high revenue value short or long term. Its a fun exercise to go through, and led us all over the place, but I'll jump to a strategy we now use on orphan nights in high demand periods, such as weekends, or in the summer or on holiday weekends. I am pretty sure nobody in this community takes 1 night bookings, as the can be operational challenges some aren't set up for (we have a system that allows us quick turnover time) and, most importantly, single night stays are a high risk booking because of the tendency for guests to be throwing parties. Well, we asked ourselves, ok, if we made an exception to that rule if we had an orphan day, how could we mitigate risk? What would the value change be to an extension strategy in terms of price and conversion? Is there an advantage anywhere to be had given the quality of our listings/space/locations and good reviews should be valuable in some way?

Well, it turns out, doing some research with searches on the OTAs, nobody really accepts single night stays, so the supply is extremely low, the quality is bad, and it turns out there are guests who do actually want a single night stay for legitimate reasons that aren't to party. So based on supply and demand dynamics, we INCREASED price and changed settings on that day to min 1 night. We then stepped up our game on communicating house rules, letting them know that noise sensors were on property, as well as cameras looking at exits and entrances that we would monitor should we be alerted to an issue, and basically spent some effort on getting the right type of guest into the property, and boom, instead of cutting a $800 a night booking to half price at $400 to capture an orphan day, we increase the price to $900 a night with minimal effort and more work for the cleaners to make money, and if in high demand periods, it works almost every time (much of the time last minute so have it ready)! +125% revenue from how we were doing it before on those nights. High demand nights on discount, even if just a day, if your listing is large or high end, deserve some consideration on if you retain more of that value given their importance to revenue. We had other ideas, but hopefully that ones is of help for that specific circumstance! Highly recommend going with the report Nars shared on non high demand gap days....my strategy doesn't work well if not because of increased supply and my pricing.
 

Catherine

Envoy
Inner Circle
I recently offered a discounted night to some future guests so they'd stay over Saturday night.
People don't normally book Saturday night- they want a long weekend, Thurs.+
?? *I wonder if any hosts manage their calendar so that Guests cannot check out on certain days like Friday??
 

RuthM

Envoy
Inner Circle
I recently offered a discounted night to some future guests so they'd stay over Saturday night.
People don't normally book Saturday night- they want a long weekend, Thurs.+
?? *I wonder if any hosts manage their calendar so that Guests cannot check out on certain days like Friday??
Depends on your market and your goals. We keep a 2 night minimum but full flexibility on days of week because our location has lots of travellers from all over (not only weekend-dependent bookings).

We were thinking of moving to a 3 night minimum since our average stay is 3 nights but it would leave too many gap nights that are hard to convert/take more effort. Two night minimum, full flexibility for in/out helps us to maximise profit (make more money with less effort).
 

Catherine

Envoy
Inner Circle
Depends on your market and your goals. We keep a 2 night minimum but full flexibility on days of week because our location has lots of travellers from all over (not only weekend-dependent bookings).

We were thinking of moving to a 3 night minimum since our average stay is 3 nights but it would leave too many gap nights that are hard to convert/take more effort. Two night minimum, full flexibility for in/out helps us to maximise profit (make more money with less effort).
Hi, I admire your ability to do 2 night stays. The stress of trying to get my cleaner to commit- she couldn't, finding another cleaner ( about to use Properly for the 1st time) and all of the details...
I was considering going from 4 min to 7! Lol! Less stress.
 
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