fbpx
July 18, 2023

Maximising revenue with expert pricing assistance for your STR

by Alices Home
Maximising revenue with expert pricing assistance for your STR - Poster

Maximising revenue with expert pricing assistance for your STR

Alices Home
July 18, 2023
Maximising revenue with expert pricing assistance for your STR - Poster

Table of Contents

Property Management specialising in STR in Australia provide support in a number of different areas. Understanding the relevant law in each State and managing tenants are just a few of them.

Pricing and revenue management are some of the most important factors for owning a short-term rental in the first place – they are probably what put you in business in the first place, and now what keep you there.

Having said that, its important to partner with someone who understands your objectives for owning an STR and can assist in creating a revenue management plan that delivers.

Why is Revenue Management Important?

Put simply, revenue management is the tool we use to optimising yields from short term rental properties. Not only does it keep you in business, but answers a lot of other questions, including how to price your property in what season, how much you could spend on renovations and purchasing other properties to expand your business, whether you can afford to have two or three holidays in your own property this year and whether holding a STR is a lucrative business for you in the first place.

At the same time, ideal short-term property management services realise that revenue management is not all about making profit. If a STR is incorrectly priced in a particular location or season, it won’t book.  Applications for bookings do not necessarily mean that the property is popular and will make a lot of money, because the pricing may be too low or the applications themselves may be undesirable for one reason or another. These two factors may be detrimental to the property in the long run.

How does a Short-term Property Management Service Organise Revenue Management?

An STR Manager will have a number of KPIs to focus on for each property. The most important KPIs are as below:

Your STR property manager will understand that these three KPIs are all related to each other. Therefore, if you adjust one, the other is affected. For example, if you’re optimising ADR, you’ll get the highest rates on the most in-demand dates. However, you may end up with vacancies that you otherwise could have sold, which would have contributed to your RevPAR. Then, if you try to optimise for occupancy, you may be leaving money on the table.

Some Tips to Optimise Your Revenue

The most obvious way in which distribution affects revenue management is the “health” of the property listing itself. Here are some tips to increase the “health” of your listing.

Conclusion

Pricing is only a part of revenue management and not the only metric that will result in a successful STR campaign.

Remember that each property is different, as is the location and the objectives of each property owner. Your Property Managers are experts in revenue management and will be able to assist with the delicate dance that is revenue management.

Share on social media:

Partner with Us
Call Us at
07 3518 4073 or call (中文) 0410798587

We are excited to announce that we are currently looking for local business partners, specifically housekeeping teams and handymen