Most airbnb owners in Australia face the same challenge in winter: reduced occupancy.
Seasonality is a major factor for Airbnb properties (and hosting) worldwide, and Australia is no different. Fortunately, there are ways to solve this problem.
If you make some adjustments to your property in advance, you will have more opportunities to maximize your income.
Adjusting Prices or Offering Discounts
Winter being the low season in most Australian cities, so it will be important to adjust the price per night appropriately.
You will also face increased competition from other vacant Airbnb offers in the winter. Therefore, a flexible price per night will be a decisive factor for customers. This can mean a reduction in the price per night, cleaning fee or the definition of a flexible cancellation policy. The goal is to win them against their competitors.
Some short-term management companies, such as MadeComfy, constantly monitor job vacancies and know when to apply discounts to give homeowners an optimal price for rent. It is a similar strategy adopted by Australian hotels to attract more travelers.
Encourage mid-term bookings
Some guests may stay longer than 14 days. Attracting these types of guests will increase occupancy rates, but you will have to lower the price to make your Airbnb offer more attractive. In the long run, you should see higher returns. For example:
• $ 200 x 18 nights (60% monthly occupancy) = $ 3,600
• $ 140 x 31 nights = $ 4,340
On Airbnb, you can do this by defining length of stay reductions.
Minimum Flexible Nights
By adjusting the minimum number of bookable nights for your Airbnb (otherwise known as MLOS – minimum stay in the hospitality industry), you will be able to fill vacation periods between bookings. There might be travelers looking for a getaway or visitors attending conferences, so allowing shorter stays will open your Airbnb account to more booking opportunities.
Airbnb recommends that guests "reduce the minimum number of nights as much as possible and, in the same way, increase the maximum number of nights", which will allow your property to appear more frequently for Searches corresponding to dates set by customers.
Preparing for Major Events
Major events in Australia, such as festivals, concerts and conferences, can attract visitors and increase demand for Airbnb. There will always be something interesting for visitors, especially in major cities like Sydney, Melbourne and Brisbane.
In Sydney, for example, the famous Vivid festival is presented in winter, where popular monuments illuminate the night. On the big Queen's 2019 birthday weekend, an estimated 600,000 people have visited Sydney's central business district to see Vivid.
Get 5 Star Reviews
For most booking platforms, the more 5-star reviews you have, the higher your listing will be in search results. The review of positive reviews is one of the last decisive steps that most guests check out before making a booking. According to Airdna (one of the leading providers of short-term rental data), between November 2014 and September 2018, the highest number of stars has a better occupancy rate way.
If you receive critical reviews, use it to your advantage and learn from your mistakes. It will be crucial to win more than 5 stars during the low season.
What type of property do you rent in the short term?
Different properties will attract different types of travelers.
If you have a vacation home, several families might be interested. They will look for a kitchen, a garden or a pool, two more bedrooms and a spacious living room.
The apartments, on the other hand, attract more commercial workers, couples or solo travelers, who will place more importance on the proximity of important landmarks or the CBD.
Take a look at the experiences of customers during the winter and comment on them. If you can determine the type of travelers staying in your Airbnb account, you can reorganize your property to meet the needs of those customers as well.
Increasing the number of bookings for your Airbnb will not happen overnight, but you will see long-term benefits by implementing these changes before next winter. The important thing is to follow up on recommended changes before competitors so that you have better chances of getting reservations.
If you do not have the time, there are short-term rental companies such as MadeComfy, which understand the Australian market and know how to increase Airbnb bookings in the off-season.
Disclaimer: The views expressed by the contributors do not necessarily reflect the opinion of Your Investment Property.
Top suburbs:
mt gravatt
,
East Victoria Park
,
Leumeah
,
month-end
,
Goulburn
Get help with your real estate investment
Do you need help in finding the right loan for your investment?
When you invest in real estate, it is important to make sure that you do not only have the lowest available rate that you can get, but you also have the features of ready adapted to your needs.
Just fill in a few details below and we will then make arrangements with a local Australian mortgage broker to contact you and settle What features or types of loans are suited to your needs? We will even help with the paperwork. In addition, an appointment is free.
We value your privacy and treat all your information seriously – you can check
our privacy policy here
