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🎯 Mastering Seasonal Pricing: Your Secret Weapon for STR Success
Don't understand how to price accordingly for peak demand vs. slow seasons? 🤔 Here's how to outsmart your competition and maintain steady bookings all year long. 👩💻
MARCH 3rd, 2025
Good morning STR Report Community! Today’s newsletter is sponsored by Well & Good, a full scale servicing company specializing in vacation rental turnover.
In today’s issue, you will find:
📱Today’s Article: 🎯 Mastering Seasonal Pricing: Your Secret Weapon for STR Success
📈 Trending Market Highlights: Charleston, South Carolina & Honolulu, Hawaii
🫧 3 Immediate Steps to Serving Excellence from Well & Good
✉️ STR News: U.S. Review January 2025: High Demand Out-Paces Last Year’s Performance & more
💸 Mortgage Rate Watch
🌰 Unique Airbnb of the Week
🏫 Subscriber Perks: Beginner’s Guide E-Book, Guest Communication Messaging Templates, Airbnb Welcome Guide Template, & STR Buy Box Template
✅ Community Perks: Personal Airbnb Investment Finder, Top-Tier Property Management, STR Loans & More, Airbnb Construction, STR Realtor Search, & Tax Savings for STR Owners
📬 See our collection of newsletters here: Prior Newsletters
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🔨 Airbnb Construction – Building or renovating a short-term rental? Work with experts who know exactly what features maximize bookings and boost nightly rates. Designed for profitability, built for success.
🏡 STR Realtor Search – Finding the right short-term rental property starts with the right realtor. Get connected with top STR-focused realtors who know the best markets and cash-flowing deals.
💰 Tax Savings for STR Owners – Keep more of your rental income with expert tax strategies tailored for short-term rentals. From write-offs to depreciation hacks, maximize savings and minimize tax liability.
🎯 Mastering Seasonal Pricing: Your Secret Weapon for STR Success
Seasonal pricing is your secret weapon for squeezing the most revenue out of your short-term rental. By tweaking your rates to match demand, you can fill your calendar during slow seasons and cash in big during peak times. Ready to become a pricing pro?
📈 High Season: When Demand Peaks, So Should Your Rates
During peak times, the demand for STRs can be overwhelming. People travel based on the best weather, holidays, or major local events. Here’s how to approach these golden opportunities:
Summer Highs 🌞: If your property is near a beach, lake, or popular vacation spot, summer is prime time to increase rates. Travelers are willing to pay for location, amenities, and the promise of relaxation.
Holiday Frenzy 🎄: Thanksgiving, Christmas, and New Year’s bring travelers in droves, from families avoiding crowded guest rooms to couples seeking cozy getaways. Premium pricing is not only justified but expected.
Local Events & Festivals 🏟️: Concerts, sports tournaments, or food festivals can create a temporary surge in demand. Be ready to raise rates to match the spike in bookings, and keep an eye on your local community events.
📉 Low Season: Keep Bookings Flowing
Low seasons can leave your calendar with some gaps. Rather than letting your property sit empty, adjust your pricing strategy to attract more budget-conscious guests.
Winter Lulls ❄️: If you’re in a summer-centric location, winter might bring fewer visitors. Lower rates slightly to attract snowbirds, remote workers, or anyone looking for an off-season retreat.
Post Holiday Slump 😴: January and February can be quiet months. Offer discounts or incentives like extended stays or bundled experiences to keep interest alive.
Highlight Unique Features 🪵: Even in slower times, your property can stand out by emphasizing seasonal perks like a fireplace, hot tub, or scenic views.
🌦️ Shoulder Season: The Balancing Act
The transitional months between high and low seasons require a more nuanced approach.
Spring Blossoms 🌸: Travelers come out from winter hibernation in search of a getaway. Adjust rates moderately, increasing for weekends, spring break, or holidays like Easter.
Fall Adventures 🍂: Autumn highlights stunning landscapes and quieter retreats. Position your property as the perfect place to unwind before the holiday chaos, and set rates accordingly.
📊 Tools and Tips for Smart Pricing
To successfully navigate seasonal pricing, you need data-driven insights and a flexible strategy:
Use Pricing Tools 🛠️: Platforms like AirDNA, PriceLabs, or Wheelhouse help track market trends and adjust rates dynamically.
Analyze Your Market 📈: Look at local competitors to understand their pricing patterns and how they respond to demand fluctuations.
Add Value 💡: If lowering prices during the low season, add in perks like free Wi-Fi, complimentary parking, or discounts on extended stays. If you want to really increase value, add top-tier amenities like a putting green, hot tub, or movie theater.
💼 Long-Term Benefits of Seasonal Pricing
Seasonal pricing isn’t just about short-term gains, but a powerful way to keep your property relevant and profitable year-round. By understanding when to raise and lower your rates, you can:
Maximize Revenue: Earn more during high-demand periods without leaving money on the table.
Attract Guests Year-Round: Offer value during slower times to maintain a steady stream of bookings.
Stay Competitive: Adapt to market trends and keep up with industry standards.
Seasonal pricing requires attention to detail and market research, and is also an opportunity to align your STR business with the natural flow of demand. By staying flexible, proactive, and customer-focused, you can make the most of every season.
Adjust your rates with confidence and watch your bookings thrive all year long. 🏡
Don’t want to bother with adjusting rates on your own? Hand it over to a trusted property manager and let them do the work for you.
Today’s first feature: Charleston, South Carolina
Downloadable Charleston, South Carolina Short-Term Rental Market Report
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🌊 Charleston is a great place to invest in a short-term rental for several reasons:
📈 Strong Market Performance
Average Daily Rate (ADR): $413.77
Occupancy Rate: Peaks in June at 82.07% with an annual average of about 67.5%
Annual Revenue Potential: The market-wide average revenue potential is approximately $120,000 per year, with strong variation based on property size.
Charleston’s historic charm and growing tourism industry make it a profitable market for STR investors.
🏛️ High Demand from Tourists & Events
Charleston’s rich history, vibrant food scene, and picturesque beaches attract millions of visitors annually.
Major events like Spoleto Festival USA, Charleston Wine + Food Festival, and the Southeastern Wildlife Exposition boost rental demand.
Strong appeal for weddings, historical tours, and cultural festivals ensures steady bookings year-round.
✅ Favorable Regulations & Investment Potential
Charleston’s short-term rental regulations are evolving, but investors can still find profitable opportunities, especially in areas where STRs are permitted.
4-bedroom properties have the highest gross yield (16.16%), making them an ideal choice for maximizing returns.
Even if regulations tighten, Charleston’s strong housing market makes converting to long-term rentals a viable option.
With steady tourism, strong revenue potential, and a rich cultural appeal, Charleston remains a highly attractive market for short-term rental investments. Read our full Charleston, South Carolina Short-Term Rental Market Report attached above.
Today’s second feature: Honolulu, Hawaii
Downloadable Honolulu, Hawaii Short-Term Rental Market Report
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🌺 Honolulu is a great place to invest in a short-term rental for several reasons:
📈 Strong Market Performance
Average Daily Rate (ADR): $501.38 per night
Occupancy Rate: Peaks at 79% in July, with an annual average of 72%
Annual Revenue Potential: The market-wide average revenue potential is approximately $150,000 per year, but actual earnings depend on property size and location.
Honolulu’s year-round tourism and tropical appeal provide consistent rental income for investors.
🎉 High Demand from Tourists & Events
World-famous attractions like Waikiki Beach, Pearl Harbor, and Diamond Head drive steady visitor demand.
Major events such as the Honolulu Marathon, Vans Triple Crown of Surfing, and Hawaii International Film Festival attract thousands of tourists.
Strong demand from international travelers and military personnel stationed at Pearl Harbor and other bases.
✅ Favorable Regulations & Investment Potential
While some regulations exist, Honolulu still offers great opportunities for licensed short-term rentals, particularly in designated resort zones.
High occupancy and revenue trends make larger properties (4+ bedrooms) especially lucrative investments.
If short-term rental rules evolve, properties in tourist-favored areas can still generate strong returns as long-term rentals.
With high tourist demand, solid revenue potential, and a unique island appeal, Honolulu remains a top-tier destination for short-term rental investments, as long as local culture is being respected. Read our full Honolulu, Hawaii Short-Term Rental Market Report attached above.
📈 U.S. Review January 2025: High Demand Out-Paces Last Year’s Performance
In January 2025, strong demand surged 7.2% YOY, driving record bookings and the first January occupancy growth since 2021, with Mountain/Lake Resorts leading ADR growth at 11.6% amid rising pricing power, while high interest rates and regulations constrained supply growth and new investments.
📲 Lodgify Accelerates Growth of Its Vacation Rental Management Platform with Tech Innovation and Leadership Transition
Lodgify has appointed Shaun Shirazian as its new CEO to drive growth and innovation in its vacation rental management platform, with co-founder Dennis Klett transitioning to a non-executive board role and Joaquim Lechá joining as chairman.
🎊 Monty Holiday Home disrupts short-term rental market with 0% commission
Monty Holiday Home has introduced a subscription-based property management model that eliminates commission fees, allowing homeowners to retain 100% of their rental income.
💸 Italy Clamps Down on Self-Check-ins and Key Boxes for Short-Term Rentals
Italy is restricting self-check-ins and key boxes for short-term rentals to enhance oversight and address regulatory concerns
🚃 Costco Travel Signs New Deal with Travelport to Drive Membership Value with Modern Retailing Technology
Costco Travel has entered a long-term agreement with Travelport to utilize its APIs and Travelport+ platform, aiming to enhance travel options and modernize the booking experience for Costco members.
💸 Mortgage Rate Watch – February 28, 2025
Current Mortgage Rates (as of February 28, 2025):
30-Year Fixed: 7.05% (+0.04%)
15-Year Fixed: 6.44% (+0.04%)
30-Year Jumbo: 7.35% (+0.03%)
30-Year FHA: 6.85% (+0.05%)
30-Year VA: 6.40% (+0.07%)
7/6 SOFR ARM: 6.43% (+0.02%)
📉 Market Overview:
Mortgage rates have seen slight increases across most loan types, reflecting ongoing volatility in bond markets and investor caution regarding Federal Reserve policy. The 30-year fixed mortgage rate remains above 7%, maintaining affordability challenges for homebuyers.
📊 Rate Trends & Forecast:
Short-Term: Expect continued fluctuations based on economic reports and Fed commentary.
Long-Term: If inflation data improves, rates may stabilize or decline later in 2025.
For real-time mortgage rate updates, visit Mortgage News Daily.
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