Begin with comparable accommodations
Compare the same resort when possible, then similar nearby accommodations. Match dates, unit type, occupancy, amenities, cancellation terms, and mandatory fees. A hotel room is not a direct comparison for a two-bedroom villa with a kitchen.
Measure demand for the exact dates
Holidays, school breaks, festivals, sporting events, conventions, and seasonal weather can materially affect demand. A well-known destination can still have low-demand weeks.
Account for booking lead time
Pricing should change as arrival approaches. Early in the booking cycle, test a rate supported by demand and comparables. Later, weigh the value of waiting against the risk of an unrented stay.
Separate owner cost from market value
Maintenance fees help measure the owner’s economics, but guests price against available alternatives. Market value may be above or below the owner’s cost for a particular reservation.
Use a planned pricing range
- Initial market-supported rate
- Dates for reviewing booking activity
- Pre-approved adjustment range
- Minimum acceptable owner proceeds
- Last-date decision for discounting or personal use