This week's tip is inspired by our interview with
ambercarpenter of DemandIQ (full interview below). It is aimed at anyone who has a website and a basic property management software.
"Unconstrained demand" is the traveler demand for your vacation rental property(s) without the constraints of availability or rate rules. Including beyond 100% occupancy. Your 'unconstrained demand' for nights is much greater than the 'demand' that actually makes a reservation. Because when a guest arrives at your website and types in their dates, a scary percentage of the time they do NOT inquire/book simply because no "supply" shows as available.
Why do travelers get the 'no availability' message?
Typically either because (a) we don't have the inventory for those needs OR (b) we do have the inventory for those needs but our rate rules do not permit the booking. The "mistake" here is showing "no availability" thus ending the traveler's pursuit (or more likely sending them to a competitor).
There was traveler demand, but for whatever reason, we could not fill it.
Here are three good steps to begin thinking about your "Unconstrained Demand" aka. earned booking potential left on the table...
1. Estimate Your 'Unconstrained Demand'
Because the first step to capitalizing on 'Unconstrained Demand' is putting a number on it. Imagine if you left every night open on your booking software with no rules. How many nights booked would you most likely generate? The mere act of estimating this number should give you a rough idea about potential upside.
2. Alter Your “No Properties Available” Message
This is the equivalent of a 404 Error page on your website: the visitor was looking for something and you don't have it. The more personal and authentic about your "no availability error" message, the better chances you have of keeping the guest in your orbit. A little "talking head video" explaining how you're a small company would work well. Here's one that
Terry uses for his new inquiries. Here's one I just created as a specific example.
3. The "Alternate" Property
Add an additional or "Alternate" unit or property to your property management software along with a description explaining this alternate option and a form to fill out to inquire (not a paid booking, just a qualification of interest). This Alternate Property acts as a the pressure release valve of the boiler decision making process. Instead of being forced into yes or no (booking or no booking) it gives the guest an open-ended route to reach out (and not head to your competitor's website).
Small batch businesses (52 widgets as
TeenaNH says or "10 Oxtails" as I put it) have limited inventory by definition AND we have lifestyle limitations that impact our rate rules (ie. this is not your everyday supply/demand business story). But the more constraints we add, the fewer bookings we get. There's no need to view this as all or nothing. More of a sliding scale: the more effort we put into capturing the "unconstrained demand" the more money we can make (if that's what we want to do).
And now a question for the community...
What other ways can you assess & capture your unconstrained demand?
ambercarpenter of DemandIQ (full interview below). It is aimed at anyone who has a website and a basic property management software."Unconstrained demand" is the traveler demand for your vacation rental property(s) without the constraints of availability or rate rules. Including beyond 100% occupancy. Your 'unconstrained demand' for nights is much greater than the 'demand' that actually makes a reservation. Because when a guest arrives at your website and types in their dates, a scary percentage of the time they do NOT inquire/book simply because no "supply" shows as available.
Why do travelers get the 'no availability' message?
Typically either because (a) we don't have the inventory for those needs OR (b) we do have the inventory for those needs but our rate rules do not permit the booking. The "mistake" here is showing "no availability" thus ending the traveler's pursuit (or more likely sending them to a competitor).
There was traveler demand, but for whatever reason, we could not fill it.
Here are three good steps to begin thinking about your "Unconstrained Demand" aka. earned booking potential left on the table...
1. Estimate Your 'Unconstrained Demand'
Because the first step to capitalizing on 'Unconstrained Demand' is putting a number on it. Imagine if you left every night open on your booking software with no rules. How many nights booked would you most likely generate? The mere act of estimating this number should give you a rough idea about potential upside.
2. Alter Your “No Properties Available” Message
This is the equivalent of a 404 Error page on your website: the visitor was looking for something and you don't have it. The more personal and authentic about your "no availability error" message, the better chances you have of keeping the guest in your orbit. A little "talking head video" explaining how you're a small company would work well. Here's one that
Terry uses for his new inquiries. Here's one I just created as a specific example.3. The "Alternate" Property
Add an additional or "Alternate" unit or property to your property management software along with a description explaining this alternate option and a form to fill out to inquire (not a paid booking, just a qualification of interest). This Alternate Property acts as a the pressure release valve of the boiler decision making process. Instead of being forced into yes or no (booking or no booking) it gives the guest an open-ended route to reach out (and not head to your competitor's website).
Small batch businesses (52 widgets as
TeenaNH says or "10 Oxtails" as I put it) have limited inventory by definition AND we have lifestyle limitations that impact our rate rules (ie. this is not your everyday supply/demand business story). But the more constraints we add, the fewer bookings we get. There's no need to view this as all or nothing. More of a sliding scale: the more effort we put into capturing the "unconstrained demand" the more money we can make (if that's what we want to do).And now a question for the community...
What other ways can you assess & capture your unconstrained demand?
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