How To Manage Discounts In Your Vacation Rental Business

Did you know that around 93% of customers use a coupon code throughout the year? Whether it be from newspapers to use at the supermarkets or finding exclusive deals when shopping online, they’re always looking for the best price.

When it comes to planning a vacation, more and more travelers are looking for a good deal these days. They research the best deals for flights, and will even change their travel dates according to lower prices. The same goes for car rentals, and you guessed it, accommodation.

We’re not encouraging you to lower your prices, but rather introduce coupon codes in your business to target more guests and increase your bookings. Travelers want what’s known as a “unique opportunity,”i.e. a good service at a lower price. They don’t want the cheapest vacation rental on the market, but the vacation rental of their dreams at a price they feel is fair and they are saving on.

Coronavirus Update

Due to the outbreak of the coronavirus, many vacation rental hosts have seen cancellations, however, there are still ways you can increase your bookings despite the outbreak. One of these ways is offering a discount to guests to use at a future date. For example, you can offer a promotional code for summer or later in the year. Let guests know that if they book now, they will have your rental secured at a lower price. It works in your favor too, as you may be getting an income right now.

How To Manage Discounts

There are many advantages to offering a discount. It appeals to travelers more, knowing they are getting a good deal, as well as you as a host getting ahead of your competition. So how do you manage and offer promotions? In this article, we’ll explain 6 ways how:

1. Analyze Your Guests

Do you have an idea of who your typical guests are or what kind of travelers are most interested in your property? If you know the needs of your guests, you will know what kind of discount or opportunity will interest them most. If they are couples who usually travel on weekends or like to spend a long weekend, a 3 for 2 nights may encourage them to end up booking your property. If they are millennials who tend to make last-minute decisions, an offer with an expiration date could win them over.

2. Make Your Own Discount Code

With Lodgify’s website builder, you can easily make your own coupon code for guests to use on your website. You can create these promotions based on length of stay, booking date and stay date.

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Once you’ve set up your promo code, you can send them to all your past guests through marketing emails. Let them know it was a pleasure having them at your rental, and they can book again with a special promo code. For example, you can offer guests 20% off their total rate if they book within the next 48 hours. Opportunities for past guests are very effective in building customer loyalty.

Special deals are also a great excuse to follow up inquiries that did not turn into bookings. You can also include these travelers on your mailing list when sending out your promo codes.

3. Share On Social Media

Now that you’ve got your discount code, it’s time to actually promote it. Social media is a very effective way of marketing, as it will get your business in front of prospective guests and reach an even further audience.

Nowadays a majority of travelers follow brands on social media to access promotions and discounts. So you can give your followers what they want by posting deals and special offers.

Facebook is a great way to get the word out quickly. So if you’re ready to offer a discounted rate, let your followers know. Post your offers on your own Facebook page, and share it in travel groups and groups in the local area. Instagram is also a great tool, as you can post stories and include your promo code there.

4. You Make The Rules

The discounts should not only help guests out guests, but they should also be beneficial to you and your business. Once you know what kind of promotions you wish to execute, and what kind of travelers you want to target, it’s time to make a strategic plan for yourself.

Create special offers, discounts, packages, and opportunities by calculating your profit margin. It’s important to understand your financial situation and make sure that discounts won’t leave you out of pocket. For example, don’t advertise any discounts that won’t let you maximize your profits. Remember that promo codes are a way of advertising your rental and increasing your occupancy, so don’t get carried away!

5. Showcase Your Property

You’re not only advertising a deal, but also your vacation rental property. Tell guests what they can enjoy if they book your rental, for example, a welcome basket with local products, a swimming pool where they can rest on their vacation, or any other amenities included in your rental.

6. Look For Opportunities In Your Calendar

Take advantage of the discounts and offer stays when you anticipate not having many bookings. For example, it’s a Thursday and you don’t have guests for the weekend? Announce a last-minute offer on all your channels.

Take holidays and seasonality into account, for example, the Fourth of July and plan discounts around them. The low-season is also a great time to offer added-value deals. If you’re finding it hard to fill the calendar out of season, create promotional codes for that specific time.

By offering your guests added-value deals such as three nights for the price of two, or a whole week for the price of four nights, you might find you’re able to fill much more of your calendar than you originally thought.

Now you know how to manage discounts on your vacation rental website and turn them into a beneficial opportunity for both you and your guests. Increase your bookings with these top 6 tips!

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