I think Price, and Price alone, is the biggest factor.
Feb 7, 2017 14:17:13 GMT
High Priestess likes this
Post by Maria Lurdes (Milu) on Feb 7, 2017 14:17:13 GMT
It's such a slow time right now and I'm using the time to do as much research as I can (in between bouts of binge-watching Hoarders and Cops). In my area, there are a few hosts that offer higher priced listings and we pride ourselves on there being value attached to that higher price. That means nicer furniture, high quality linens, fully equipped kitchens, etc. Up to now it's been a good formula and we've had a lot of success. Since the market is now so fully saturated it means that we're competing with a race to the bottom in prices. I've been refusing to play that game as I have higher costs, I'd rather have quality bookings than quantity bookings, etc. This game no longer works.
When I look at my competition, and I see similar offerings for 1/2 the price, it makes me crazy. I look at the calendars, and they are booked up, way more bookings than I have. I look at the pictures, and I think, shrug, nothing special, cheap furniture, ugly decor, mismatched pillows, badly laid out, no charm, no warmth. But it doesn't make one iota of difference. The reviews are great- same as my reviews. So why in the world am I spending time and money to replace an ugly vanity, to find that lovely lamp that has a shade in the same color as the carpet, why am I taking time to choose artwork and arrange it on the walls? The only things that matter are that the pictures accurately reflect the listing, and of course, that the host interacts. So if host A has what I consider an inferior listing to me but he provides the same level of care and interaction, he will get the same reviews as me, and he will on top of it get more bookings, as his place is priced way more competitively. There is a limited market for the higher priced offerings.
I am glad that I finally came to this realization, as we're in the process of closing on another property, and that means we'll give up two of our rented apartments for our owned properties. As we go through and renovate this new place, I'm going to be much more budget minded, and I'm going to offer a clean comfortable place, with no frills. I'll price it aggressively and see how that goes...
When I look at my competition, and I see similar offerings for 1/2 the price, it makes me crazy. I look at the calendars, and they are booked up, way more bookings than I have. I look at the pictures, and I think, shrug, nothing special, cheap furniture, ugly decor, mismatched pillows, badly laid out, no charm, no warmth. But it doesn't make one iota of difference. The reviews are great- same as my reviews. So why in the world am I spending time and money to replace an ugly vanity, to find that lovely lamp that has a shade in the same color as the carpet, why am I taking time to choose artwork and arrange it on the walls? The only things that matter are that the pictures accurately reflect the listing, and of course, that the host interacts. So if host A has what I consider an inferior listing to me but he provides the same level of care and interaction, he will get the same reviews as me, and he will on top of it get more bookings, as his place is priced way more competitively. There is a limited market for the higher priced offerings.
I am glad that I finally came to this realization, as we're in the process of closing on another property, and that means we'll give up two of our rented apartments for our owned properties. As we go through and renovate this new place, I'm going to be much more budget minded, and I'm going to offer a clean comfortable place, with no frills. I'll price it aggressively and see how that goes...
