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How to Handle Inquiries from Bargain Hunters
Thanks in part to increasing gas prices and food costs, many of you may be getting more inquiries from bargain hunters than in past years.
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We've recently heard from many vacation rental owners lamenting the onslaught of inquiries from travelers looking for discounts.
Thanks in part to increasing gas prices and food costs, many of you may be getting more inquiries from bargain hunters* than in past years.
However, it's not just the slumping economy that has facilitated hordes of bargain hunters into the vacation rental realm.
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This year, the press has taken notice of vacation rentals as a great alternative to hotels and, in turn, many travelers who have stayed in hotels in the past are now trying out vacation rentals. A lot of these travelers are used to comparison shopping on websites like Expedia or Hotels.com, or even naming their own rate at Priceline.com.
The key to handling these bargain hunters is to stay firm on your rental rates and instead convince them of the value of your home versus the local hotels. Be familiar with the hotel rates in your area and be armed and ready to use the numbers. For example, a family of four vacationing for a week in Myrtle Beach could spend $150/night to stay in a 400 sq. ft hotel ($1050 for the week) or could rent your two bedroom 900 sq. ft. condo with a full kitchen for $1100.
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If your home is booking slower this year than in the past, don't jump the gun and give a discount too early. Your home is worth the posted rate, especially in the peak season. Now if you have a week open that's just a week away and you get a prospective renter asking for a discount, you might consider knocking something off your rental rate to secure the booking. But whatever you do, don't give your home away.
Many bargain hunters travel in the off-season to get lower airfare and to avoid the crowds. If you get a bargain hunter knocking on your door for a week or weekend that you don't typically book, consider their offer, but again don't give your place away.
*Now, it's important to denote the difference between a bargain hunter and a bottom feeder. Bargain hunters are looking for the best value for their money and are willing to spend a little extra time to make sure that they get the best deal. They're typically reasonable folks who, in the end, turn out to be decent renters. Bottom feeders, on the other hand, want a drastic discount and act like they're doing you a favor by renting your home. This type of inquirer tends to be more trouble than they're worth. Try to determine which type you're dealing with before moving forward with a booking. 
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How do you handle inquiries from bargain hunters?
"I ask them where they live. If they are traveling from a long distance or ask about a bargain I immediately offer to pay for their parking pass (15.00 value). I don't make them beg for a bargain and I won't give my place away. I have found this to be very effective. This small gesture saves me a lot of time on the phone with bargain hunters. They are usually happy and I end up with the rental rate that I need. Another suggestion, find out what is going on with the surrounding properties. Maybe that brand new resort has just filed bankruptcy. If the bargain hunters want to stay somewhere that is Brand NEW but suspiciously cheap. At least in our case the condo development is established in PCB and won't have a chain on the door when they arrive for their vacation." -Kimberly, Panama City Beach, FL (VRBO #184083)
"I stay firm on my rates and explain that I am also affected by the increase in prices of everything. Thus, I can't afford to discount my home unless it is one week prior and still available!" -Anonymous homeowner
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© Copyright 2008 HomeAway, Inc. Updated 9/4/08 by Kristin Dorsett.
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