Analytics Always Drive Revenue…
Whether it is beating your friends in your fantasy football league, succeeding in the stock market, or making the most revenue out of your vacation rental, using analytics effectively will consistently will give you the best chance to win. But what analytics should we be looking at and how do we apply them? Let’s go over our top 2 metrics and how we apply them in order to maximize your vacation rental revenue.
RevPAR
Revenue Per Available Rental or RevPAR is a factor of average daily rates and occupancy rates and is the most important metric in the success of a vacation rental. It is a key indicator of the overall health of your market and lets you know the median revenue per day that you can expect from your rental. This number can be filtered down to factor in bedrooms/ bathrooms, amenities, or more specific location (distance to beach, lake, festival, etc.) in order to get a more accurate picture. RevPAR, along with historical data, allows you to accurately forecast your annual revenue and is why it is such an important data point for any vacation rental.
Booking Lead Time
Booking lead time is simply the number of days between when a guest makes a reservation and the actual check-in date. The longer the booking lead time, the higher the demand and the greater the opportunity to increase rates. This is most commonly seen with seasonality or special events. Examples would be holidays or festivals where people are planning far in advance, but we do see seemingly random weeks or weekends spike in booking lead time. These are the opportunities that are missed if you are not constantly paying attention to booking lead time.
In general, an increase in RevPAR or Booking Lead Time equates to opportunity to increase your revenue. If you are not looking at these data points on a daily basis, chances are you are leaving money on the table.
If you have any questions about how to gather this information, how to apply the metrics, or what these metrics look like for your home, send us a message and we can show you the ropes!
-V Vibes Team