Most vacation rental markets have at least 3 seasons (peak season, shoulder season, and off-season); however, some can have up to 6 or 7 distinct seasons and others have just one year-round rate. If you've rented your home for a while, you're likely all-too-familiar with the ebbs and flows of your particular market.
On the other hand, if you're fairly new to renting, your best bet for determining the right rental seasons for your home is to research other vacation rental properties in your area. When perusing vacation rental websites like HomeAway.com, VRBO.com, or VacationRentals.com, note which specific dates other owners in your area are charging which rate, paying specific attention to holiday rates and minimum stay requirements. |
| Peak Season
Most vacation markets have a peak season of at least 10-12 weeks. You can typically count on booking all of your peak weeks and can charge top-dollar. Since this period is in such high demand, you can also likely require a minimum stay of 1 week.
Typical rental rate: Your highest weekly rate
Minimum stay: 1 week
Shoulder Season
The shoulder season tends to run right before and right after the peak season. These weeks can be a little bit harder to book than the peak season, but will be easier than the off-season. Your shoulder weeks may warrant a lower rental rate than your peak weeks (60-75% of the peak week rate). For example, if you charge $1000/week during the peak season, you might charge $600-$750/week during the shoulder season. Consider lowering your minimum stay during the shoulder season to 3 nights to accommodate travelers seeking long weekend vacations.
Typical rental rate: 60-75% of your peak season rate
Minimum stay: 3 nights
Off-Season
The off-season or slower season tends to be the time of year when the weather is less-than-ideal for your market's main outdoor attraction (skiing, beachcombing, etc.). Travelers who vacation in your market during the slower season likely stay for either a few days (weekend getaways) or a few months (snowbirds), so be sure to display your nightly, weekly, and monthly rates. Your off-season rate is usually considerably lower than your peak or shoulder season rates. For example, if you charge $1000/week during the peak season, you might charge $250-$300/week during the shoulder season. The slower season is also the best time to experiment with special offers and to reach out to past guests.
Typical rental rate: 25-30% of your peak season rate
Minimum stay: 3 nights
Holidays and Events
Many travelers plan trips around major holidays to work around school calendars. The most popular weeks tend to be around Spring Break, Fourth of July, Thanksgiving, Christmas, and New Year's. Since these weeks are in such high demand, you charge a bit more for them and require a longer minimum stay in many markets. For example, ski properties in Colorado can sometimes fetch up to 200% of their peak season rates for the weeks surrounding Christmas. However, the same properties couldn't charge such a high rate for the week of Fourth of July. On the flip side, many beach properties charge up to 200% of their peak rate for the Fourth of July week, but only 25-30% of their peak rate for Thanksgiving and Christmas.
Typical rental rate: 25-200% of your peak season rate
Minimum stay: 3 nights-1 week
Before setting your rates for 2009, sketch out a rough calendar for the year that includes:
Major holiday weeks. In many markets, you can charge a little bit more for high-demand holiday weeks like Christmas, New Year's, Thanksgiving, and Fourth of July.
Bank holidays. Take note of all bank holidays since many travelers may get these days off from work and plan a 3-day getaway. US bank holidays for 2009 include: Martin Luther King, Jr. Day (1/19), Presidents Day (2/16), Memorial Day (5/25), Labor Day (9/7), Columbus Day (10/12), and Veteran's Day (11/11).
Religious holidays. Be cognizant of religious holidays as well. Click here for a 2009 calendar.
Other holidays. Don't forget other holidays like Valentine's Day (2/14), St. Patrick's Day (3/17), Mother's Day (5/10), Father's Day (6/21).
School breaks. Check the school calendars for metro cities within driving distance to your home (or if you're in a fly-to market, where many of your travelers come from). Specifically determine when the schools adjourn for the summer, when they start up again in the fall, and for any breaks of a week or longer (spring break, fall break, holidays, etc.).
Annual events in your market. If your market hosts an annual event that brings hordes of tourists into town, be sure to take note of it. If the event is large enough, you may even be able to charge an inflated rate due the scarcity of lodging available.
The Bottom Line: Don't make the mistake of underselling your vacation home (and losing potential income) by choosing the wrong rental seasons for your market.
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