OTAs Push Daily Rates

Our industry experts predict OTAs will push vacation property managers to utilize daily rates this year.

OTAs Will Push Vacation Rentals to Daily Rates

Online Travel Agencies (OTAs) represent the next frontier for vacation rental property managers with direct bookings and vacation rental-specific marketplaces accounting for 71% of total bookings. OTAs offer property managers access to a much wider audience, but you’ll have to play by their rules.

You probably already offer weekly or monthly pricing, but OTAs require daily rates. They need daily rates to show “strikethrough” prices that tempt travelers, which means that your property management software will have to feed OTAs your daily rates ahead of time. You’ll also need to get comfortable with your properties being instantly bookable online.

Travelers Also Expect to See Daily Rates

The recent shift to travelers taking shorter-length trips is likely to continue in 2018. With instances of short trips (4-6 nights) and long vacations (7+ nights) both down 4% over the last three years, the dream vacations travelers aspire to take are being cut down. On the other hand, instances of long weekend trips have actually increased 8% since 2014.

Vacation rentals have historically been priced by the week, month, or even season. Now, as travelers start taking shorter trips, they’ll expect to see daily rates and shorter minimum stays. Displaying daily rates and reducing minimum stay requirements will also help attract travelers who book (relatively) late and fill empty properties.

Takeaway: If you haven’t already, consider migrating to daily rates to set your company up for success.

We partnered with leading property management service providers to explore trends shaping the vacation rental industry for 2018 to help give you a competitive edge in the marketplace. Download the 2018 Vacation Rental Trends Report for Property Managers to read the full report.

 
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