One of the hardest decisions to make when you go to list your property is choosing how to price it. Do you offer discounts for longer stays, should you charge for additional guests, and what times of the year are popular and deserving of a higher nightly / weekly rate. This can initially be a slight game of trial and error, and can take at least 12 months to get a real feel for the market.
Here are a few things to consider when you are working out your pricing
- Do you offer a weekly discount?
- What are peak / shoulder / off-peak seasons in your holiday home area?
- How much are other similar properties charging?
- What is a reasonable number of guests for your property, and how much extra should additional guests cost?
- What is your cleaning fee (if you don’t do it yourself)?
- How much will the price actually be for guests if the website you are using adds a booking fee
- If using multiple listing sites, will you use the same price on each?
- Will you have a minimum stay for your property
You may want to consider how long your target market is likely to stay in your holiday house. For instance, if you are offering a downtown CBD location your guests may well be short term 1-2 night stayers, and therefore having a 3 night minimum stay will mean that you miss out on opportunities. However, if you have a beach house property you will generally find that your guests are looking for a longer stay. On occasion we have offered guests who want to stay for extended periods of time a customized lower rate.
When comparing to other properties that are listing try to remember that initially you may have yet to receive your first review. This may mean that for an initial period of time you will need to offer a more attractive rate to persuade potential guests to choose you. Once you have a few great reviews under your belt, you can review your rate.
If you are interested in getting nightly rate estimates for a holiday home you own or are looking to purchase, then do touch base with us. We have a vast wealth of data for each part of New Zealand and can give you an accurate assessment of these figures.