In March 2024, over 345,000 visitors attended SXSW in Austin TX, which gave investors the opportunity to make more on their investments.
Harnessing the power of peak season pricing lets you earn a killing during busy periods and, if you're strategic, stand out from competitors. But if you've never considered a strategy, you likely won't know where to start.
Sounds like your situation? Luckily, you've come to the right place. Here's how to price your property during peak season in Austin, TX.
Set Your Base Rates
Before you dive into the world of dynamic pricing models, it's wise to do your research. Look at the current market and see what similar properties are earning normally, known as the average daily rate (ADR), so you know where to start.
During normal times, price your rental 5 to 10% lower than the ADR to be competitive.
Research the Rental Market and Local Events
Once you've decided on a base rate, note major events like SXSW, ACL Fest, and vacations that drive demand. To find this data, use Google Trends to analyze search volume so you're prepared.
If you notice there's a high demand, tweak your prices to accommodate it. A good rule of thumb is to set a peak season rate that is 15 to 20% above your base rate for weekends, holidays, and popular events. On the flip side, your low seasonal rental rate should be 10 to 15% below the base rate to consistently attract guests.
Offer Bundles and Packages
Successful investors offer bundles and packages as it's a great way to justify a higher price for your vacation rental. It also helps you stand out from competitors because you offer customers a one-of-a-kind opportunity. You could, for example, offer a package that includes a SXSW ticket, accommodation, and transport to receive bookings.
Advertize Your Property Everywhere
You don't want to spend hours figuring out vacation rental pricing, only to attract zero leads. To prevent this from happening, list your Austin unit on major listing sites and even on social media. If you have the know-how, use SEO to boost your visibility on Google and increase your chances of landing a booking.
Seek Advice from a Property Manager
Dealing with rental pricing strategies can be a nightmare for inexperienced investors, which is where property managers come in. These professionals have experience handling vacation rentals in Austin, TX and know when to charge more.
An added bonus is that they can share property management tips and advice on how to maximize profits during peak season.
Get Smart With Peak Season Pricing in Austin, TX
Hopefully, you're now an expert on peak season pricing and will use these tips for your vacation rental. As it can feel overwhelming, it's wise to hire a property management company to guide you through the process.
At PMI ATX Properties, our team strives to make our clients' lives easier by handling daily tasks. By using the latest tech and innovation, we figure out how to maximize your profits and keep your property fully booked.
If you want to learn more, we'd love to hear from you. Contact us here to chat with a representative.
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