Are you making the most of the potential of your short-term rental apartment?
Meet Marek
Marek is an attorney at one of Warsaw’s largest law firms. In 2012, he bought a beautiful apartment not far from the Old Town. The fantastic location and functional, tastefully furnished interior mean that Marek’s apartment is quite popular among users of sites like Booking.com or Airbnb.
We met Marek when he turned to BookingHost on a recommendation from one of our satisfied clients. Marek is a pragmatic person, keenly interested in the short-term rental market, who was disappointed with the company then managing his apartment. His main complaint was that the were not able to optimize rates, and as a result, in Marek’s opinion income from vacation rentals was too low. We were happy to have a look at the schedule of prices set by his current property management company. Our experts noticed straight away that the pressure to maintain 100% occupancy did not produce the results that Marek expected. Developing a strategy where the main goal isn’t occupancy, but profits, is a challenge, but one we were quite happy to take on!
Challenge
- Ensuring a quick and efficient change in the management company
- Assuming management in a situation with a fully established and booked schedule of availability and rates
- Introduction of a pricing strategy to maximize profits for the remaining available dates
Strategy and implementation
In developing a short-term rental management strategy for Marek’s property, we had to take a number of aspects into consideration, starting with what the competition offered, and then the season, and finally creating an optimal balance between the expected occupancy and optimizing prices.
For us, it was a priority to fill the apartment in the period between reservations made under the previous management company, the value of which Marek and we both were sure had been estimated as too low. Together with Marek, we realized that the key to the implementation of the new strategy was to raise the average price, because clearly, considering the potential of the apartment and its closest competition, the rates were set by the previous management at a level that was far too low.
Results
Much to Marek’s satisfaction, we managed in a pretty short time to increase his income thanks to raising the price per night, without losing the interest of guests. What’s more, setting rates at a higher level properly positioned Marek’s apartment, thanks to which the type of client changed from youths and groups of students to families with children and business travellers. We discovered and exploited the full potential of Marek’s apartment, thanks to which his income rose, and we earned another satisfied client.
It may seem hard to believe, but thanks to the right pricing strategy and dynamic rate management, we were able to increase Marek’s income by 33% in low season, and as much as 218% in high season!
Average price per hoc, PLN
Owner's income for the month, PLN
Why BookingHost?
- Many years of experience in apartment management, not only in Poland, but also in such competitive markets as Italy and Portugal
- Management based on an advanced algorithm, which generates a set of rates based on consideration of a wide range of data and factors.
- Thanks to dynamic price management, we can maximize owners’ profits and achieve results that are two to three times the market average.
- Our team made up of experts in many fields guarantees that we provide the highest quality of service in every area we work in.