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The Definitive Study of Vacation Rentals

Leaves no stone unturned....

Competitive Set

Picking an accurate competitive set is extremely important in planning your rate strategy.

After 25+ years, I've come as close to mastering the identification of competitive properties as anyone can! 

First, you may ask, "Which properties are placed in your competitive set"?

The simplest answer is that "true" competitors have a direct effect on your bookings. When they decrease their rates and/or their restrictions potential guests will book their property instead of yours. This is the simplest explanation. Identifying these properties takes some investigation.

First, we must evaluate the search areas in each reservation platform that guests look in to find a rental home. These searches could be a town, a city or a broad area...like "East Coast Middle Maine" or "Suffolk County South Shore". 

Second, we must evaluate the style and caliber of each of the homes in our rental program. In the majority of cases, someone looking for a contemporary designed home of a 4 diamond caliber will be viewing only homes that meet that criteria.  

Third, we need to break those homes down into the number of bedrooms, bathrooms and how many occupants the home can accommodate. 

Forth, we need to look at traveler opinions and ratings. If you have 40 comments and are 4.5 stars a property with 12 comments and 2 stars is not likely to be in your competitive set.

Finally, I look at the presentation and order of photos and the quality. 

Wise VR companies keep an eye on their competitive set. If they raise rates or stay restrictions consideration might be to do the same if your booking PACE is on target.

I pick 4 competitors to formulate a competitive set.