Occupancy Increase of 191%
Occupancy increase of 191% and gross earnings increase of 80% with our management services
We study the short term market in Happy Valley. In order to maximize the profits for our clients we monitor local events and general traffic to the area to determine the best rates for each home for each day. We then adjust the pricing daily to reflect the market trends. What’s happening in mid-February here in State College? Nothing (except some snow and ice). Therefore, why price your home at a premium when very few guests are looking for places to stay?
The average Happy Valley short term rental owner does not monitor their pricing as closely as we do and as such, misses opportunities. The profile of the average home in Happy Valley is the following:
| Jul ’18 – Jun ’19 | Average AirBnB Home | Managed Home | Impact |
|---|---|---|---|
| Occupancy | 22% | 64% | 191% Higher |
| Average Nightly Rate | $208 | $130 | 63% Cheaper |
| Annual Gross | $16,676 | $30,368 | 82% More Profit |
One figure that immediately jumps out to us is the lower average nightly rate our homes have compared to the average home. This is simply because the average home is fully utilized during the very high demand dates such as graduation weekend and football weekends, but the average home sits vacant much of the rest of the time.
If we examine the second quarter of 2019 which includes April, a relatively slow month, May, with graduation and June, the start of local summer camps, we can see that our hospitality services drive bookings and revenue to our clients.
| April 1 – June 30, ’19 | Managed Average Home | Average Air BnB |
|---|---|---|
| Nights Rented | 59 | 17 |
| Occupancy | 65% | 19% |
| Average Nightly Rate | $146 | $154 |
| Gross Earnings | $8,651 | $2,663 |
Even though our average nightly rate is lower for the second quarter, our earnings were 325% higher for the second quarter. This was all accomplished with very little input from our clients.
Get in touch – we’d love to help you
Please call us now at 814 876 5034 or click HERE to email us.
