Vacation rental News
Key price strategy opportunities at Booking.com
Basis of a pricing strategy
Adapt to changing travel needs
We have always known that travelers want competitive, transparent and attractive rates. To secure more bookings, it is very important that each potential customer sees the right price at the right time. It can also help you reduce cancellations, minimize unsold rooms and prevent the need to offer last-minute discounts.
A solid foundation is the key to any successful pricing strategy. The Booking.com rate plans and customizations help you create the most suitable configuration for your business. Once you have your rate plans set up, it’s a good idea to review and optimize them regularly to reach the maximum number of travelers, increase your bookings and achieve higher occupancy over time.
The Avantio and Booking.com connection allows you to create a pricing strategy in a comfortable way thanks to different APIs that we have developed for you.
Here are some tips on how to get the most out of each of these strategic tools that will help you improve conversion and continue to grow.
1- Guaranteed secure payments at a non-refundable rate
Reduce cancellations by adding a non-refundable fee.
With a non-refundable rate, clients will pay the full amount if they cancel the reservation or no-show. This type of rate is an excellent way to secure revenue.
According to Booking.com data, adding a non-refundable rate plan to your existing rate plans can reduce your total cancellations, on average, by 9%.
2 – Secure your bookings and income in advance
Get early bookings by offering an early booking rate.
The early booking rate helps you boost occupancy early in the season by attracting customers who book their travel well in advance.
Booking.com recommends that you set this promotion for a minimum of 15 days in advance of check-in.
3 – Add a specific tariff and increase your visibility on mobiles
Set up a mobile tariff to capture the demand for this type of device.
Booking.com data shows that 75% of bookings are made on mobile devices. Mobile is by far the most important channel for bookings, and is also associated with significant booking behaviors:
● Recurring bookings are more often made on the app.
● First bookings are made seven times more often on a mobile browser.
Although the majority of bookings are made from mobile, this behavior is more evident among younger users. Customers under the age of 35 use their phones to book accommodation 65% of the time. That’s why adding a mobile rate can help make your accommodation more visible among this demographic.
For more information on mobile tariffs, read this article.
4 – Receive bookings from local customers at a country-specific rate
Set up special rates for your country and attract local demand.
Country rates are special rates offered to travelers from certain countries and regions to make your accommodation more attractive to them. Incorporating them into your pricing strategy is a good way to capture demand from certain segments.
By targeting specific segments with more attractive prices, country rates can help you fill available rooms for special events in specific markets. They also help you increase your visibility by offering competitive rates in countries with high demand.
For more information on country rates, please read this article.
5- Boost your income with weekly and monthly rates
Set specific rates to drive occupancy among customers who book longer stays.
The latest data from Booking.com shows that demand for longer stays has increased. Weekly or monthly rates can help you capture this demand by offering a discount to customers who book longer stays.
● Weekly rates require a minimum stay of 7 nights.
● Monthly rates require a minimum stay of 28 nights.
These specific rates can also help you expand your customer base and reach business travelers, families or domestic travelers who want to stay longer.
Weekly and monthly rates will help you ensure more stable and predictable revenue, while reducing your operational burden because you’ll have fewer check-ins and check-outs to manage.
Why should you offer a combination of rate plans?
The number of online bookings increases. Travelers book the non-refundable and fully flexible fare plans more than any other plan on our platform. These two fare plans are clearer because it is easy to compare them and choose the best option.
Different preferences for different trips. Our data shows that people book both flexible and non-refundable fare plans, depending on their travel needs and how far in advance they book. It is beneficial to offer both plans so that your rates remain attractive to a wide variety of customers at all times.
More guests at your lodging. Accommodations that have both rate plans receive, on average, a higher percentage of bookings. If you don’t offer non-refundable or fully flexible rate plans, you’re likely losing bookings.
If you want to learn more about how pricing can help you respond to the changing needs of travelers, here‘s all you need to know about pricing foundations.