No, but it might be on the endangered species list. It's easy to think that increasing your nightly minimums is a good strategy to boost revenue. There is often an inverse relationship between minimums, occupancy and revenue. A solid understanding of the rental market in your area is key to finding the right balance between nightly minimums that will actually drive increased occupancy and minimums that will kill your reservations.
I’ve increased my minimums. Where have all my rentals gone?
Owners are often surprised when I tell them that the average stay in Breckenridge, Colorado is around 3.5 nights. This sounds low, but it’s actually within trends that we are seeing nationally.
There are some areas of the US that still thrive in the weekly rental market. One market that comes to mind is the Outer Banks In North Carolina. If you’ve ever rented a beach house there, you know that you only have 2 option; Saturday-to-Saturday or Sunday-to-Sunday. Surprisingly, this is even changing and you can find shorter rentals in the off seasons.
We see this trend as a major shift in recent years as travelers begin to take advantage of shorter and more frequent tips. Traveling habits are changing and we need to be able to adapt to this shift in market behavior. Failure to do so will put you at a disadvantage with your competitors. A recent study by Phocuswright indicated that the average length of stay is getting shorter. In 2012, less than 25% of trips were 3 nights versus 38% of trips in 2016.
Does this mean that more reservations mean more wear and tear on my home?
No, and often it may result in less. I constantly hear this from concerned owners and I completely understand their concerns. Shorter stays mean more reservations and it's easy to think this will result in more wear and tear. This is not necessarily true. You can look at this from multiple perspectives. First, more reservations of a shorter stay means that your home is inspected, cleaned and maintained more often. This results in better care of your home. Lastly, guests are all different and nothing is to say that a guest that stays longer is more likely to care of the home better then a guest of a shorter stay. What's important is that you have a property manager that can ensure your home is well cared for and that understands the emerging trends so they can help you achieve your goals while protecting your investment.
About SkyRun Vacation Rentals – Breckenridge
SkyRun Breckenridge is a award winning full-service vacation rental property management company based in Breckenridge, Colorado. Founded in 2009, SkyRun provides professional rental & property management from studios to large luxury homes. SkyRun provides superior accommodations with convenient ski-in/ski-out and in-town locations throughout the town of Breckenridge to quiet peaceful escapes in Blue River and North Breckenridge. SkyRun Breckenridge is veteran and locally owned and operated; our goals are to create the ultimate vacation experience for our guests and provide unparalleled owner and guest service and support.
⇒ Voted #1 Property Management Company in Summit County, Colorado
⇒ Town of Breckenridge Service Champion Award Winner