Spring break is upon us! If you’re like me, you have waited all winter long for the temperatures and ADRs to start to rise. And if your diet and exercise plans are also like mine, then spring break is taking you by surprise this year. Have no fear, however, as we are here to walk you through how dynamic pricing can get you the perfect set of ADRs for any market!
No place does Spring Break quite like the Florida Panhandle, so that’s where we’ll start, specifically with Rosemary Beach. First, when reviewing forward-looking occupancy, it’s important to get the time period exactly right.
From Friday, March 12th, to Saturday, March 13th, occupancy jumps 26% points as the festivities begin. The party lasts until around April 9-10, when it reverses, dropping 34% points.
Getting these days right is incredibly important to tone those ADRs. Having elevated rates over to the adjacent days that don’t have high demand will not only cause you to undersell those nights, but over-price the whole reservation, which could mean key dates go unbooked.
Next on our workout to-do list is to focus on traditional weak areas (for me, that’s always been baked goods). For Rosemary Beach as a region, the weak point is the week between March 20th - 26th, where we’ve traditionally seen low occupancy.
While having a week that is 10% points lower than the surrounding weeks may be fine for the market, we want every week of yours to look and feel its best. In the chart below, we can see that for the Rosemary area, not only is the average posted price not increasing for the week before March 20th—when we see an increase in demand—but the rate isn’t dropping when it should be.
On the other hand, more advanced pricing algorithms that are always monitoring forward-looking occupancy in close knit comp sets turn this data into the correct pricing at the correct time. In fact, Beyond Pricing listings in the area have 7% higher revenue for that week than comparative listings due to our trim ADRs.
Just as it’s never too late to think about Spring Break, it’s also never too early to think about it either. Don’t be afraid to get ahead of the curve for 2022 - check the dates that it will fall in your area now to begin thinking about how demand may change year over year.
If you want a health check as we prepare to enter Spring Break season, come take a few minutes on behalf of your ADRs (and occupancy) and see how you’re doing with us in Insights for free.