In this episode of The Vacation Rental Show, host Lynell Gordon speaks with RevMax co-founders Desiree Garcia and Maureen Shilling, who bring over 40 years of combined revenue management expertise. They discuss the evolving vacation rental marketplace in 2025, sharing insights on adapting to market changes and maximizing revenue through strategic approaches beyond pricing.
Setting Clear and Achievable Goals
Desiree Garcia emphasizes the importance of setting specific, measurable goals for occupancy: “If my oceanfronts are supposed to be 80%, then my goal should be 80%,” she explains. “You can’t just say ‘it’ll come.’ If you aim for 90% occupancy this year, but you’re stuck at 70% without doing anything different, you need to reconsider your strategy.”
Understanding your goalposts and making adjustments based on demand and market conditions is crucial for staying on track. Garcia cautions against vague goals and encourages property managers to be proactive in setting clear, achievable targets. Without measurable objectives, it becomes difficult to optimize performance.
The Power of Tangible Value in Driving Bookings
Traditional discounts are losing their appeal. As Desiree notes from a recent test comparing 25% discounts to tangible value-adds like cleaning fee credits, “The cleaning fee credit drove significantly more bookings than the 25% off offer.” Customers are increasingly savvy and may view discounts as an attempt to make prices seem artificially high. Offering tangible value, like cleaning fee credits or added amenities, provides a real incentive that drives conversions.
Testing different value propositions, such as adding pool heat or providing credits, has proven to be a more effective strategy than relying solely on percentage-based discounts. By giving guests something they can immediately recognize as a real benefit, you stand out from the competition and build trust.
Leveraging Data for Smarter Revenue Decisions
Data-driven decision making is key to success in today’s vacation rental market. “I see people making assumptions instead of looking at the data,” says Maureen Shilling. Emotional reactions to market shifts can lead to misguided decisions. Property managers should focus on analyzing key data points to guide their strategies, such as:
- Weekly booking patterns
- Performance of different inventory segments
- Changes in booking windows
- Geographic source markets
By closely tracking and interpreting these trends, you can make more informed decisions that enhance occupancy rates and maximize revenue.
Strategic Inventory Segmentation
Garcia recommends segmenting your inventory by factors like bedroom count, location, amenities, and historical performance. This approach allows you to tailor your strategy based on specific property types. For example, some properties may need early discounts to drive bookings, while others can maintain premium pricing and attract higher-paying guests.
Segmenting inventory also enables more targeted decision-making on promotional strategies, and value-add offerings. With this approach, property managers can be more agile and responsive to market changes, optimizing revenue while reducing reliance on last-minute price cuts.
Tapping Into Your Database for Direct Marketing
Maureen highlights the untapped potential of your guest database: “Now is really the time to start being creative and dusting off that list.” With years of operational data accumulated, property managers can segment their guest list based on factors like:
- Spending patterns
- Travel preferences (time of year, property type)
- Geographic location
By using this data to create highly targeted marketing campaigns, you can engage past guests with personalized offers, such as early booking incentives, return guest promotions, and property-specific discounts. Maureen stresses the importance of reaching out to guests before they start shopping on third-party platforms like VRBO, making it easier for them to book directly with you.
Action Plan for Property Managers
1. Immediate Actions:
- Audit your booking policies and barriers
- Segment your inventory based on key factors
- Organize and clean your guest database for marketing purposes
2. Short-Term Strategy:
- Test tangible value-adds versus discounts to see what drives bookings
- Launch targeted marketing campaigns for past guests
- Tailor your revenue management strategies based on inventory segments, including adjusting pricing and promotional tactics
3. Long-term Investment:
- Develop a comprehensive marketing strategy
- Build robust data analysis capabilities
- Create flexible booking policies that protect revenue
Looking Ahead
The vacation rental industry continues to evolve rapidly. Success requires staying flexible, embracing data-driven decisions, and thinking creatively about revenue optimization. As Desiree Garcia concludes, “Pricing is ultimately the last thing that you have to adjust if you’re doing everything else in your revenue management ecosystem.”
Property managers who adapt to this new reality – moving beyond simple pricing adjustments to embrace comprehensive revenue management strategies – will be best positioned to thrive in the changing marketplace.
Remember: The goal isn’t just to fill properties; it’s to optimize revenue while building a sustainable, resilient business model that can weather future market changes.
To hear the full conversation between Lynell, Desiree, and Maureen on The Vacation Rental Show, follow the links below: