Home » Vacation rental marketing posts » Auctioning – A Clever Way to Maximise Income on Your Hottest Weeks. Or is it?

 Kevin Riedel of Unrents.com joins us again this week – We asked him,

Auctioning – A clever way to maximise income on your hottest weeks. Or is it?

Here’s Kevin’s take on this –

As a VR owner, you would use UnRents.com to auction last-minute holes on your rental calendar at a discounted rate. Well…


Consider this…


Consider UnRents.com your last chance to get some revenue for a week (or period of time) before it passes and you’ve lost the opportunity forever. Remember, time in a vacation rental is 100% perishable.

One of the ways you can sell unrented weeks on UnRents.com is via auction.

I did this because auctions bring out some desirable emotions in buyers during the selling process. Buying via auction creates a sense of urgency and excitement. It also brings out a competitive side in buyers that makes them want to win.


But what if you used the auction feature with a different mindset?


While doing market research before building UnRents.com, I spoke with a VR owner who had a different idea on how to use the auction function on UnRents.com.

Instead of using it to get the best possible discounted rate for a week you can’t fill, why not use it to get the best possible maximum rate for your hottest weeks?

Allow me to illustrate. Let’s say the first week of August is your hottest week every year. It rents at your highest rate and it’s the first week to book every season. In addition, you get constant inquiries on the week even though your rental calendar clearly shows it as being booked.

What if instead of selling that week in “first come, first served” manner, you auctioned it off?

Think of the laws of supply and demand. Supply is very small – it’s a single week. And because there’s high demand, the price will climb.


Why not find out how high it will climb?


Given the high demand, there’s certainly going to be buyers who will pay over your asking price. So at the beginning of your booking season, you should put your hottest weeks on the auction block to maximise your income.


What do you think?


What do you think

Is this a great way to get your highest possible rates for your most valuable weeks?
Or is it a recipe for resentment that will make you look greedy to your best regular guests?

 


 Kevin and I would love to hear your views. Please use the comments section below to share your thoughts.