Peak seasons make you want to set that price tag high, right? But it’s more of an art than a number game. You want to maximize earnings, but you also want your place booked. There’s no perfect formula, but there are smart ways to get closer to the sweet spot. Let’s walk through how to think about peak pricing, without overcomplicating it.
1. Start With Local Data, but Don’t Rely on It Blindly
Look at what similar listings in your area are charging. That’s your baseline. Check for dates, amenities, and recent reviews. If they’re offering a hot tub or access to a private beach, and you don’t, expect your price to sit a bit lower.
Tracking competitors’ prices over a few weeks helps reveal booking patterns. When prices look too high or low compared to your place, adjust accordingly. Stand out by focusing on what makes your rental unique. Maybe your large backyard or fast check-in is a selling point you can mention.
2. Know Your Costs and Set a Break-even Point
Calculate all your monthly costs (mortgage, utilities, cleaning, maintenance). Divide by how many nights you expect to book in peak season to find your break-even rate. This number tells you the minimum nightly rate to avoid losing money.
After that, decide how much above break-even you can realistically charge. The market usually won’t support doubling your price overnight. Consider past booking rates or local demand trends. Prices that are too high can scare away potential guests, leaving your calendar empty.
3. Break Down Your Peak Season Calendar
Not every day in peak season has the same demand. Weekends, holidays, or local events usually draw higher interest than regular weekdays. Group dates into pricing tiers. For example, have a base peak rate, a higher rate for holidays, and a premium for weekends.
You don’t need too many price levels: two or three tiers are enough. This gives flexibility in capturing different demand spikes. It also helps fill gaps on less busy days by lowering prices slightly while charging more on hot days.
4. Be Flexible With Minimum Stay Rules
Many owners set strict minimum stays, like 7 nights during peak season. But this can turn away guests who want shorter trips. Offering shorter minimum stays closer to the date can help fill calendar gaps and increase revenue.
For example, if a guest wants 3 or 4 nights and is willing to pay a slightly higher nightly rate, accepting that can be better than leaving those nights empty. Shorter stays booked at a premium often bring in extra income without hurting overall earnings.
5. Use Promotions Carefully
Promotions like early booking discounts or last-minute deals can fill the calendar when demand slows. An early bird discount of 10% for bookings made 90 days ahead can attract guests planning early. Last-minute deals can fill unexpected vacancies, especially when demand dips.
That being said, don’t run discounts too often. If guests expect regular sales, they might hold off booking until prices drop. Keep promos targeted and limited in time so they don’t undermine your overall pricing strategy.
6. Track Your Results and Adjust
Pricing isn’t set-it-and-forget-it. Keep track of your occupancy rates and nightly prices. Use a simple system to note dates, rates, whether promos applied, and booking status. After a season, analyze what worked and what didn’t. Tools like PriceLabs can help you with that.
Maybe holidays booked quickly at a certain price, or some discount didn’t help at all. Use this information to make better pricing decisions next time. Some property owners use spreadsheets; others rely on tools built into rental platforms.
7. Show Guests Why Your Price is Fair
Pricing isn’t just about numbers. Guests decide based on value. If your rate is 20–30% higher than nearby rentals, explain why. Highlight extras like a spacious yard, high-speed Wi-Fi, or fast cleaning turnaround. Make sure photos and descriptions reflect the quality you’re charging for.
If you raise prices, point out new features or improvements. A small upgrade, like adding a hammock or new kitchen gear, can justify a price bump. Giving guests reasons to pick your place reduces sticker shock.
8. Keep an Eye on Competitor Pricing Throughout Peak Season
Peak season can last weeks or months. Competitors might change prices as demand shifts. Checking similar rentals every week or two helps you stay competitive.
If others drop prices because bookings slow, you might want to follow. Or if demand heats up and prices rise, consider matching that. Adjusting your prices throughout the season prevents losing bookings or leaving money on the table.
9. Understand What Peak Season Means for Your Location
Peak season varies by area. Beach towns usually peak in summer. Mountain cabins might peak in winter. Some places have more than one peak, like a ski resort with winter and summer seasons.
Study your region’s trends carefully. Some months might seem like peak season but have falling demand. Pricing accordingly for shoulder seasons can improve occupancy without losing too much revenue.
10. Review Your Pricing After Peak Season Ends
Once the busy season wraps up, take time to review how your pricing worked out. Look at what nights sold well and which didn’t. Did your rates bring in the bookings you expected? Were there days when a small price change might have filled empty dates?
Adjusting your strategy for the next peak season starts with honest reflection. Keeping records and learning from each season helps you improve over time. Pricing isn’t a one-time task; it’s a process you get better at with practice.
Ready to Price Your Rental for High Season?
Pricing for peak season isn’t just about raising rates. It’s about understanding your market, costs, and guests’ expectations. Using tools like Houfy makes adjusting and managing prices easier, so you don’t miss opportunities. With the right approach, you can make peak season your most profitable time while keeping your calendar full.
