When big events come to town, they bring a unique opportunity for hosts and property managers in the hospitality industry. The influx of visitors looking for accommodation can significantly boost revenues. However, this surge also presents a common challenge: the 3-night dilemma, where guests prefer shorter stays, while hosts aim for longer bookings to maximize occupancy and revenue.
In this article, we take a look at how hosts and hospitality managers can create a 3-night strategy to optimize stays and booking processes during these high-demand periods while ensuring they don’t damage their long-term booking revenue.
What is the 3-night dilemma in vacation rental management?
This typically refers to a situation in hospitality, especially in short-term rental markets like Airbnb, where there’s a conflict between the duration of stay guests prefer and what hosts want to offer during high-demand periods, such as major events or peak seasons. Guests often seek shorter stays, usually around three nights, to align with the duration of their event, while hosts might prefer longer bookings to maximize occupancy and reduce turnover costs. This creates a dilemma for hosts: to stick with longer minimum stay requirements or adjust to shorter stays to cater to guest preferences and market demand.
Event landscape analysis: know what you’re working with
The first step in creating your strategy is understanding the event landscape. In addressing the 3-night dilemma and optimizing stays and booking processes on your vacation rental management software, you must first understand what you’re working with. It’s illogical to create a 3-night pricing strategy, for example, to handle guests that might trickle in for a conference that’s a 40-minute drive away.
So, what does analyzing the event landscape mean? Here are a few key research ideas to help you determine what to do, how to do it, and when is the right time.
- Research upcoming events: Identify upcoming events in your area, including concerts, sports events, festivals, conferences, and cultural events. Look at community calendars, tourism websites, and local news outlets for information. Then, gather details about each event, such as its nature, its duration, expected attendance, and the demographic it attracts.
- Analyze past trends: If similar events have occurred, look at past data to understand how they impacted lodging demand.
- Monitor social media and event forums: Social media platforms and online forums can provide insights into what attendees are discussing – especially where accommodation is concerned – and their needs and preferences.
- Gather feedback from past guests: If you’ve hosted during similar events, the feedback from these guests can be extremely valuable.
- Talk to local business owners: Engage with local businesses and event organizers for insights. They might have valuable data and predictions based on their experiences.
- Find out about local infrastructure and transportation: Consider the infrastructure and transportation options in your area. Proximity to event venues and ease of transportation can significantly impact guest preferences.
By thoroughly analyzing the event landscape, you can better tailor your offerings and strategies to meet the specific demands of event attendees.
Let’s get strategizing
With your research done, it’s time to start building your strategy. There are a couple of topics to address and changes you can make to maximize your revenue during short stays.
- Implement a flexible pricing strategy
A dynamic pricing strategy means you adjust prices based on demand fluctuations. Higher prices during peak event days can offset the shorter booking durations, while lower prices on adjacent days can attract extended stays. - Adjust your minimum stay requirements
While it’s tempting to set longer minimum stays, be mindful of the event duration and typical visitor patterns. Sometimes, a three-night minimum can optimize revenue better than a week-long requirement by aligning with guest preferences. - Create tailored packages
Event-goers will want to take advantage of certain amenities and services like transportation to the event venue, special check-in/check-out times, or event-themed welcome packages. Such value-added services can justify higher rates and encourage longer stays. Here are some ideas of concierge opportunities you can offer guests. - Market specifically to event-goers
Advertise your property on platforms frequented by potential guests and use event-related keywords in your property listing. Social media campaigns and collaborations with event organizers can also increase visibility. - Collaborate with local businesses to offer event-related packages
Partner with local businesses to offer guests a more comprehensive experience. Packages, including local tours, restaurant deals, or shopping discounts, can encourage longer stays. - Optimize your listing
Ensure your listing highlights features attractive to event attendees. Emphasize proximity to event venues, transport links, and any event-specific amenities you offer. While you’re at it, make sure that your listing is up to par to ensure you get seen and stand out from the competition. Here are some tips on optimizing your listing. - Leverage technology
Property management or vacation rental management software like Guesty lets you analyze booking patterns and adjust your strategy in real time. Additionally, they offer dynamic pricing tools, like Guesty PriceOptimizer, which are useful for shifting your prices before, during, and after a specific event.
For more tips and information on this topic, check out this article on revenue management and pricing strategy.
The work doesn’t end when the event is over
Optimizing stays and booking patterns during big events requires a delicate balance between meeting guest preferences and achieving business objectives. But your work doesn’t end with a single event. Although guests may only book for 3 nights (or fewer if the event is short), you need to research and reuse your strategy over and over with multiple events to boost your revenue. It may seem daunting at first, but once you find your rhythm, you’ll be surprised by how seamless it becomes – just as seamless in fact, as using vacation rental management software like Guesty.