Tiering your prices is one of the most effective strategies in maximizing both bookings and revenue.
What is Tiered Pricing?
Simply put, charge your highest rates for the most in-demand weeks and lower your rates for periods with less demand.
A recent study showed that 20% of our clients still aren’t using tiered pricing. If you’re charging peak summer rates for June, September, or late August, you could be losing bookings.
- Peak demand typically occurs during the last two weeks of July and the first two weeks of August. (On the Vineyard, August tends to be more popular than July.)
- The last week of August is often the hardest week of the summer to rent. Kids are back in school, demand drops, and inventory is high. Many owners start out with a lower price for this week to encourage bookings. If you wait to lower it until the booking season is in full swing, you risk not booking that week at all.
- Offering lower rates during shoulder or off-peak periods helps prevent empty weeks and keeps your calendar full. Many owners offer prices of up to half of their high-season rates.
Setting the Right Price for Your Home
Getting your pricing right is critical. Experienced homeowners likely have a good sense of the appropriate weekly rates, but it’s wise to re-evaluate each year to avoid over- or underpricing.
Here are two approaches for setting your prices:
Do-It-Yourself
Search for similar homes on our site to determine competitive pricing. Start by searching in your town using your home’s bedrooms, guest capacity, and key amenities, including distance to the beach.
Then expand your search to a larger area (e.g., all Mid-Cape or Martha’s Vineyard), since many vacationers consider surrounding towns or may be unfamiliar with the region.
Comparing homes isn’t always straightforward—yours might be newer with more amenities, while another might be closer to the beach—but this will give you a solid sense of your competition and pricing.
Professional Competitive Pricing Analysis
Hire us to compare your property to local competition and determine the right rate. Options include:
- On-site consultation: Allows us to assess your property in person and provide expert advice.
- Off-site analysis: Pricing recommendations tailored to your home, plus marketing tips to maximize bookings.
Learn More About Pricing Strategies