Greetings, property aficionados and seasoned travellers! I’m Dewi from Orange Rentals, your premier serviced accommodation and short-term rental management company in the pulsating city of Liverpool.
Today, we’re setting our sights on a topic that’s often misunderstood in the world of property rentals: the high occupancy versus high income debate. Specifically, we’ll dissect why a fully booked calendar doesn’t necessarily translate to maximised profits, and why fewer bookings at higher rates could potentially be a more lucrative strategy.
Unravelling the High Occupancy Myth
A high occupancy rate – that’s the dream, isn’t it? Seeing your property booked out night after night can give an intoxicating sense of success. After all, isn’t an empty property the ultimate nightmare scenario?
At Orange Rentals, we appreciate the allure of high occupancy rates. A bustling property, after all, means a consistent inflow of guests and regular income. However, it’s crucial to note that high occupancy isn’t the be-all and end-all in terms of profitability.
A high occupancy strategy often leads to lower nightly rates, in a bid to attract a constant stream of bookings. While this approach can create a sense of security, it can also culminate in wear and tear on the property, higher maintenance costs, and can potentially lower the overall guest experience due to rapid turnovers. More importantly, it can mean leaving money on the table by under-pricing your property.
The Case for Higher Rates: Quality Over Quantity
Now, let’s take a look at the other side of the coin: the high-income strategy. This approach leans towards fewer bookings but at higher rates.
In this strategy, the emphasis is on maximising the income per booking rather than the number of bookings. This could mean catering to a more niche market that values unique property features or experiences and is willing to pay a premium for them.
Fewer bookings mean less wear and tear on your property and more time to ensure that each guest has an exceptional experience. This approach also provides opportunities to attract higher-rated reviews, which can increase the property’s desirability and allow for higher rates in the future.
But the real kicker? Fewer bookings at higher rates often lead to increased profitability in the long run. Your property might not be booked every single night, but the nights it is booked are generating more revenue, maximising your return on investment.
The Orange Rentals Approach: Quality Bookings for Optimised Profitability
So, what’s the best path forward? At Orange Rentals, we strongly advocate for a strategy that leans towards high income rather than just high occupancy.
Our extensive experience in the Liverpool short-term rental market has shown us that the real sweet spot is less about packing the calendar and more about intelligent pricing and excellent guest experiences.
We harness our local knowledge and industry expertise to position your property correctly in the market. Through our detailed analysis of historical booking data, local events, seasonality, and other factors, we set competitive yet high nightly rates.
Our goal is not simply to fill your calendar but to fill it smartly – with quality bookings that maximise your income. We consistently work on enhancing guest experiences and focus on attracting those who value what your property offers and are willing to pay a premium for it.
Conclusion
To sum up, while a high occupancy strategy might appear attractive on the surface, it isn’t always the key to higher profits in the serviced accommodation sector. Instead, at Orange Rentals, we believe in the power of fewer but higher-quality bookings at competitive rates to ensure you get the most out of your investment. Let us help you turn your property into a lucrative investment that thrives in Liverpool’s vibrant rental landscape. Trust Orange Rentals, where we make every booking count!
Dewi Roberts – Orange Rentals
