With 2.5 million visitors each year, Hilton Head is a premier tourist spot. To a vacation rental owner, this may seem like a chance to get rich really quickly.
Well, think again. Though tourists do come to Hilton Head in droves, they don't do it in equal numbers throughout the year. Instead, most of your vacation rental income will come during the time of year known as peak season.
Not sure how to make the most of this high-demand period? These tips will help you come up with the perfect peak season pricing strategy!
Establish Your Rates
First, determine the minimum and maximum rates you're willing to charge. At first glance, you may base this on the amount you need to bring in to cover the costs of running your rental. However, this doesn't take into account:
- What similar rentals in your area charge
- How many bookings you receive
- How long those bookings last
For best results, determine the rates based on your service and the kind of guests you want to attract. Once you establish your minimum and maximum rates, don't go under/over them -- even during peak season.
Identify Key Seasons
As a Hilton Head vacation rental owner, you should know the local area better than anyone. Use this knowledge to split the year into three distinct seasons:
- Peak season (highest demand)
- Shoulder season (right before and after peak season)
- Off-season (lowest demand)
Within these periods, you'll have other periods requiring specific pricing. For instance, holiday periods tend to be the busiest time of the year. Local events such as concerts or festivals an also bring a big crowd.
Set Minimum Night Stays
Setting minimum stays is one of the best ways of maximizing rental profits. Peak season is the ideal time to use this strategy. Try to optimize your occupancy rate by offering discounts for booking extended stays.
Why is this important? Simple: when demand is higher, you can cover larger parts of your calendar at once. This also protects you from having sporadic one-night bookings, reducing your cleaning fees.
Adjust Your Seasonal Pricing
As far as seasonal pricing strategies go, the general rule is that your shoulder season should be about 60-75% of your peak season. Your off-season, meanwhile, should be about 25% of the peak price.
To get the exact numbers, look into what your competition is doing. Pay attention to their:
- Rental rates
- Amenities
- Guest reviews
Some amenities can make a big difference to the price. For example, a vacation rental with a pool may charge twice as much as a rental without one! Perform regular market analysis to stay informed on your local competitors.
Peak Season Pricing Made Easy
Peak season pricing is all about finding a balance between profitability and occupancy. Of course, attracting guests is only one part of the equation. For your rental to thrive, you must also provide a superb guest experience.
At PMI Sea Island, we offer rental property management services that will help you maximize your Hilton Head investment! Our owner, Dayna Akers, is a Marine Corps veteran who takes great pride in serving clients with integrity.
Want to know more about our strategy for managing your Hilton Head vacation rental? Schedule a free consultation right now!
