One of the key issues as an owner of a holiday rental chalet is how to set the price of a stay for your guests.
It is important to settle on an amount that reflects the quality and benefits of your property while remaining competitive. To achieve this, you need to consider a number of factors and then conduct a thorough analysis to ensure that your rates are fair and attractive to holidaymakers.
In this article, we explain how we at OVO Network draw on our 15 years of expertise to help you determine the fairest price for your property and generate maximum income.
What do we mean by the fairest price?
The right rental price is neither too high nor too low. It should be attractive to holidaymakers while guaranteeing a satisfactory return.
A price that is too low can cause two problems. Firstly, it may create a high demand and lead to intense competition between interested holidaymakers. Secondly, if the price is too low, you will not be able to maximise your income. You should calculate your floor price (the price at which your rental becomes profitable) and not set a price lower than this.
On the other hand, an excessively high price is not desirable either. It deters guests, leaving your chalet vacant, and generating no income at all. A lack of bookings can also create bad publicity for your rental property.
The right price is therefore a balance between the demand of holidaymakers and your profitability.
To determine this price, you need to take into account the characteristics of the chalet, such as its capacity, location and facilities. It is also important to study the area in detail and compare the rates charged by the competition.
To help you do this, OVO Network uses various elements.
Data from our partner properties
At OVO Network, we currently work with over 150 rental chalets in the Alps. These properties are spread throughout the Alps and vary in size, location and facilities. All of these characteristics have an impact on the rental price.
These characteristics allow us to compare data from our many partner properties. In that way, we can work out average prices that are in line with market trends and guest demand. This is why our large portfolio is a real asset for all the owners who trust us.
Our specialist software
Our expert software allows us to interweave the data from these properties with that of the market. It gives us the ability to analyse and identify different consumer trends and behaviours so that we can put in place various pricing and marketing actions.
These trends can include changes in travel patterns, popular destinations, accommodation preferences, booking patterns and competitive pricing. Using this information, we can adjust our pricing and marketing strategies to maximise profitability and attract holidaymakers.
For example, current trends show a growing demand for longer stays and family travel. Holidaymakers are also becoming more demanding about the quality of accommodation, facilities and services offered.
The presence of sports and wellness facilities is also increasingly appreciated by guests. And details such as these can really be the deciding factor in their booking process. According to an Abritel® study, 57% of French people dream of having a private swimming pool at their holiday rental in the mountains.
Travel and accommodation trends are constantly changing. This underlines the importance of being vigilant, responsive and constantly adapting to changes in the industry.
This is why the software we use is a valuable tool that allows us to quickly analyse market data. We can then adjust rental rates in real time to follow these changes throughout the year.
Click below to try our short-term rental income calculator to see how much you could earn.
Our team of experts
In addition to our software, OVO Network boasts a team of experts who share in-depth knowledge of the market, the properties, the expectations of holidaymakers and the evolution of the holiday rental industry. Each Property Advisor is responsible for a region and can therefore advise you specifically on their area.
For example, as explained above, we tailor the pricing strategy to the characteristics of the chalets and their performance data. We also take into consideration the needs of the owners. We approach each property in a unique way, studying it so that we can establish the ideal way to offer the best profitability to its owner.
If you’d like our help to with your property rental project, please contact one of our advisers.
Other factors to consider
While setting the right price is central to your business strategy, there are other elements that contribute to chalet rentals and increased property revenues.
These include marketing strategy, distribution channels, booking conditions, calendar settings, specific facilities or any other competitive advantage.
For a better understanding of these elements, we recommend that you read our article below:
At OVO Network, we’ll look at all of these details to help you make the most of your property.
Determining the right price for your rental requires a lot of data to be compared and analysed. This requires skills and time that you may not have.
However, we know how important pricing is to profitability, which underlines the need for this analysis to be carried out with rigour and precision, and also to evolve in line with the market.
If you want to optimise your pricing strategy and maximise your profits, it is time to contact OVO Network!
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