Using an optimized rate will help you
September and October are historically the low season for all vacation homes in Orlando, FL. Some of Casiola’s owners tell us that before they joined, they had struck out during previous years with zero bookings for one or both months.
Since we founded Casiola, we have always generated bookings for our owners during the low season. By setting low but reasonable, and competitive, rates, we’ve ensured that our owners are making the most rental income possible during these slow months. Our secret to determining the right rates for the season is custom revenue management using our dynamic pricing model.
In early 2017, we rolled out our dynamic pricing model which gave us dramatically better results when compared with the previous years’ averages. These improved results occurred every month, but when we looked at September’s numbers we confirmed that we were doing the right thing.
At Casiola, we go through a step-by-step process to determine the optimum rate for your vacation home:
- Evaluate previous rental performance & current worth: We use your historical rental data and assess your current value to help us identify opportunities to increase your rental income.
- Get to know our owners’ competition: We compare 200+ comparable units in the immediate vicinity.
- Identify unique selling propositions for each of the units under our care: We tailor your listing to showcase the best feature your vacation home has to offer to increase market rental value. If your highest selling proposition is the kitchen, then we emphasis that!
- Thoroughly understand your unit’s booking potential: Every vacation home Casiola manages in Orlando FL, has from 200 to 365 rate variations. Each rate criteria are based on your unit’s attributes, scheduled local events, as well as nearby attractions such as convention centers or theme parks. This maximizes your rental income potential!
- Set rental goals for each vacation home: Regardless of which pricing model (performance based or fixed monthly income) our owners participate in, we work with our owners to meet or exceed their monthly rental goals. Our agents are trained in this balancing act between ADR (average daily rates), occupancy rates and Power Marketing so that owners can meet their goals worry free. Leave the grunt work to us!
Below you can see a comparison of previous year’s averages during September, and this year’s average which utilized our Dynamic Pricing model. The occupancy percentage increased by over 12% while the average rate increased $10!
Because we follow a thorough and methodical approach to dynamic pricing, we are able to maximize our homeowner’s vacation rental income. We know that each unit has its own unique selling proposition, so we set rates that are just right for your vacation home. Setting the right rates have proven to dramatically increase the amount of rental income for our owners, especially in the low season!