Holiday Home Owners Make More – 20% More Than Most Holiday Home Owners In Your Area
From the start my aim was to earn as much as I could per booking with a focus on achieving high value bookings (what’s the point in low value bookings – they involve just the same amount of work!). Then to focus on getting more of these high value bookings. This strategy continues to work for me 8 years later.
I’m not writing this to show off, but to share with you how I do it so can you also earn 20% more than comparable holiday rentals in your area.
You can’t just increase your prices and hope for the best (unless you’re currently seriously undercharging). There are certain steps you need to take in the short term. But believe me the mid term and long term results are worth it!
First Impressions Count
Most potential guest’s first impression of you is online on your website. As well as the copy you use, it will be the photographs that stick in their minds. Photographs sell! So take time now to style and present your holiday home and then invest in professional photographs. Styling your holiday home to create a memorable first impression is something you can do, you don’t need an interior designer or to spend £1000s doing your place up. Yes it means taking a bit of time initially to browse through interior magazines to get ideas and inspiration and a small spend short term as I did.
For me it meant adding a feature wall in the bedroom in a contrasting colour to the rest of the room. It meant adding complementary accessories, it meant adding lined curtains and ensuring the furniture in the room formed a cohesive scheme (and painting it if necessary). It meant taking a room from bland to wow. This bedroom example cost £300 one off spend and what a difference it makes. There’s more help here on how to style and present your holiday home for maximum impact: Styling Tweaks To Get More Bookings.
Of course, the first impression in “real life” is equally as impressive as online!
It goes without saying that I also provide the modern day, every day appliances that guests would expect to find such as a dishwasher, microwave, wifi, flat screen tv, dvd player, docking station. All pretty standard items these days that my guests would have in their own homes.
From that first impression my guests can see why my holiday home is priced at 20% more than the average looking cottage in the next village.
Know Your Target Market
My ideal guests or target market are guests who appreciate my beautifully presented holiday home, with its mod-cons, its character features, those little extras and attention to detail. Guests who are looking for somewhere a little bit special to stay.
I target those guests who are prepared to pay for quality and who aren’t looking for “budget” accommodation. Of course there’s a market for that – but it’s not me!
So rather than my target market being “couples”, I dig deeper and I know exactly what type of couple I am targetting. I know what type of job they have, their education level, their household income, what they are looking for in a holiday and a holiday home and how I can give them what they need.
Stand Behind Your Pricing
Pricing can be an emotive subject and often goes back to our mindset created in our childhood without us realising it. You’re charging how much? Who will pay that? These inner voices come to the forefront when you’re looking to charge more.
Also when thinking about your pricing don’t forget that you need to include that intangible element that you the owner contribute. The fact that you care about your guests and their holiday experience and are on hand to help and go the extra mile for them. Not to mention the cost of your time. You deserve to be recompensed for this.
When asked the price for a specific week, you must give that price unapologetically. You need to stand proud behind your pries. Just think of all the effort you have gone to to create a product that is worthy of charging 20% more, you don’t want to give all this away.
You will always get bargain hunters who are looking for just that and will make you an offer. Don’t give in to them, even if it means losing a booking and don’t feel cornered into accepting a booking thinking any booking is better than nothing. Remember it’s not – if there’s no profit in it.
If you ever get pricing wobbles, think of how much boutique hotels charge, at least £150 per night and that’s for one room. You sleep for example, 4 people for less than that per night and giving them a whole house.
As the expression goes, you can’t create a silk purse from a sow’s ear but let’s face it there aren’t many sow’s ears. What there are, are holiday homes that are not reaching their potential. Not making the most of what they’ve got.
If you want to earn 20% more that’s exactly what you have to do – maximise your earning potential. Follow my system and you will!