Despite increased demand, many hosts face challenges in trying to increase occupancy to full capacity.
If you’re struggling to maximise your bookings this summer, a simple strategy you can try is optimising your length of stay (LoS).
This strategy can help you increase bookings, strategically manage gaps between bookings and maximize revenue.
Average length of stay
One of the most effective strategies to maximise occupancy and revenue is to optimise the required length of stay based on visitor preferences.
By analyzing past booking patterns and understanding the typical length of stay preferred by guests, hosts can set minimum stay requirements that align with these trends.
Best Practices for Optimizing Length of Stay
Setting Minimum and Maximum Length of Stay
- Weekends: During weekends, consider setting a minimum stay of two or three nights to avoid one-night bookings that leave gaps before or after the weekend.
- Peak period: During high demand periods, such as summer holidays, increase the minimum length of stay to ensure longer bookings and higher occupancy.
- Maximum duration: Set a maximum length of stay to ensure availability for peak dates or periods of high demand.
Strategies for the Overnight Gaps
- Discounts on empty nights: offer significant discounts for reservations that fill the gaps. A lower rate for one night can be better than leaving the property empty.
- Offers and Special Promotions: Create promotions that highlight overnight stays, such as “Book two nights and get the third night free”.
Customize the Calendar with Visitor Preferences
- Monitor booking trends: keep track of when vacancies occur and adjust your length of stay rules accordingly.
- Flexibility: be willing to change the minimum stay requirements dynamically based on current occupancy rates. For example, if you notice gaps during the week, you can temporarily reduce the minimum stay.
- Research local trends: study visitor preferences and upcoming events that may affect demand patterns.
Clear Communication with Visitors
- Detailed entries: Clearly state the minimum and maximum accommodation requirements in your entries.
- Direct communication: Contact guests directly after booking to confirm the length of stay and any relevant policies.
Dynamic pricing
- Offers for longer stays: Offer discounts for longer stays to encourage guests to book more nights.
- Premium for shorter stays: Charge higher rates for shorter stays during high demand periods to maximise revenue and prevent short stays creating gaps.
Strategic adjustments to your pricing policies and an understanding of visitor behaviour can lead to impressive results this summer.
By utilizing the right tools and techniques, short-term rental hosts can ensure a very successful season.
