5 Tips to Grow Your Holiday Rental Business

November 2024

Are you ready to expand your holiday rental business? The best landlords never stop looking for ways to improve and grow — and here are a few of our favourite tips. Try implementing these recommendations to see big results.

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1) Find your niche

The holiday rental business is increasingly crowded. If you want to be successful, your properties have to stand out — and that means figuring out what sets you apart from the rest.

Spend some time brainstorming your unique selling point (USP). Have a look at your competitors in the same location and decide what makes you different. Perhaps your property is more luxurious, or it’s in a quirky setting like an old lighthouse or a log cabin. Maybe you’re targeting a particular audience, such as families, eco-conscious travellers, the honeymoon market, or people who need full accessibility.

Once you’ve settled on your niche, make sure your branding reflects it. You should have a clear brand that remains consistent across your own holiday rental website, your social media profiles, and wherever you advertise your holiday home online. Celebrate your niche because it will help you enhance your holiday rental business.

2) Optimise your pricing

Setting the right price can be tricky for landlords. You’ve probably already done your market research, checking out the prices of comparable properties in the area — but are you doing all that you can to grow your real estate rental business?

If you’re not hitting your occupancy targets, then something is off with your pricing. Consider introducing the following strategies:

• Be honest. Check the prices of comparable properties near you, then frankly assess whether your holiday rental is worth the same price. If your property is a simple one-bedroom flat with limited views, but you’re charging the same amount as a nearby house with a garden and swimming pool, guests are likely overlooking your listing.
• On the other hand, don’t charge too little. Got a luxury property? Charge what it’s worth. Travellers are often suspicious of very low prices and will assume that there’s something wrong with the property.
• Use dynamic pricing based on high and low season. You can charge more during peak times and less at quieter times of the year.
• Use dynamic pricing based on the days of the week. Most rentals are more popular at the weekend, and you may be struggling to fill your property mid-week. Try offering lower prices to encourage occupancy.
• Incorporate special deals. For example, you might give guests a discount if they stay for 2 weeks or more.
• Try a loyalty deal with a discount for returning customers.

Remember, pricing doesn’t need to be set in stone. This is an area where you can experiment and try different things to see what works best for you.

3) Build cross-selling partnerships with local businesses

Want to know how to grow a rental business? As always, networking can really help. Make connections with other local hospitality and tourism businesses to offer your guests better experiences.

Ideally, you’ll want to create a situation where guests arrive at your rental to find a book full of experiences they can choose from. Cross-selling deals might include meals at local restaurants and treatments at nearby spas, as well as fun holiday activities. Cooking classes, craft workshops, tours and guided walks are all great ideas.

If you can turn your holiday home into a one-stop shop where guests can easily find numerous experiences to try, you’ll soon enjoy bigger profits.

4) Incorporate cross-platform marketing strategies

The internet is a big place, and if you’re not advertising in multiple places, you’re missing a trick. An effective cross-platform marketing strategy might include Google Ads, Facebook, Instagram, TikTok and more.

Think about the kind of guests you’re trying to attract. For example, Gen Z holidaymakers are more likely to use platforms like TikTok, while older, family-oriented clients will be on Facebook. For a really effective campaign, try tailoring your ads to suit different demographics; the ad that inspires a couple with kids to book a holiday is not the same as the one that appeals to young singletons.

Once you’ve got your ads down, make sure that you have a great website, too. After all, you’ll be driving traffic here. A decent, professional website is essential if you want good results.

You should also consider listing your property on several holiday rental portals. Just focusing on one or two means you’re missing out on huge numbers of potential guests. That’s particularly true as large platforms like Airbnb have become quite controversial in recent years, and more and more travellers are looking for alternatives. Make sure your property is listed where they can see it.

5) Give your property a makeover

Finally, think about your property itself. You can optimise pricing, develop great marketing strategies and have a great online presence — but it’ll all end in tears if your property isn’t up to scratch.

You should refresh your holiday rental on a regular basis. From time to time, consider investing in big improvements; hot tubs, barbecue pits and eco-friendly upgrades like solar panels and heat pumps can help your property command a higher price.

Even if you’re not ready to splash out on a big investment, you can always refresh your property. Keep an eye on the latest decor trends, and make sure your holiday rental doesn’t look too outdated. You don’t need to give it a full-on makeover every year, but you’ll usually find something you can do to spruce it up. A fresh coat of paint at the start of a new peak season is always a welcome touch. Replacing tired old cushions, bedding and so on can also help to jazz up your holiday rental.

Think about the kind of extra details you can add — personalised toiletries, special local produce in the kitchen and so on. Often it’s the small touches that can really make a big difference to your customers. Remember, word of mouth is the best advertising. When it comes to growing your business, happy guests are worth their weight in gold.

These tips should help you develop and grow your business, but they’re just the starting point. As a holiday rental landlord, make sure you’re always paying attention to the surrounding industry. This is a fast-changing field, and it’s essential to stay ahead of the game — new trends in marketing, decor and guest expectations can all make a difference. Keep looking for new ways to enhance your business for ongoing success year after year.

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