HAWAIIAN ISLANDS PROPERTY MANAGER
Say aloha to expiring properties
This Hawaiian property manager with 41 individual listings became frustrated when they consistently ended up with a large amount of unused inventory at the end of every month.
In urban locales, it’s often not as much of a problem to hold your rates the same until just before the inventory expires. That’s because for these areas, you have a higher chance of last minute bookings.
However, in destination travel locations, guests are far more likely to book many months in advance. This is especially true for places like Hawaii, where even getting to the island requires significant travel planning and coordination.
In addition to frequently ending up with unused inventory, the property manager was also running into a situation of having to severely undercut their normal rates to attempt to fill the expiring inventory.
Disappointed with both of these situations, the property manager turned to Rented.com’s revenue management team to turn things around.
(1) Decrease unused inventory
(2) Create strategy to avoid undercutting rates
(3) Grow overall revenue
Our experienced revenue management team knew that for a destination like Hawaii, you want to be mostly booked at least two months in advance of the inventory’s expiration date.
They realized this was one of the major problems with the current revenue management strategy for these units, and that it was leading to them severely undercutting their own rates to fill them in. All of this was leading to decreased and even lost revenue.
The first thing the revenue management team did was start at the end goal and work their way back.
By this, we mean they ensured the pricing for the 90 day and over window was optimized to its fullest extent.
That way these units would sell for the correct prices in the future and this property manager wouldn’t end up in this same situation again.
After handling the long-term revenue management strategy, the team then turned to the short-term needs of these units.
Our experts went into their property management system each and every day to check on what was or wasn’t booking while also regularly reviewing their comp data.
By being so hands on and focusing on consistent dynamic pricing, our team was able to keep the reservation rates fairly close to the previous years despite the shorter deadline.
This two pronged plan of focusing on first the long-term revenue management strategy before implementing the short-term revenue strategy ultimately led to an increase of both bookings and revenue which has continued to this day.
IN THE FIRST MONTH
TO DATE THIS YEAR