Seasonality Secrets: Maximizing Revenue in Your Short-Term Rental Business
In this episode of the Vacation Rental Revolution Podcast, Shawn Moore dives deep into one of the most critical—yet often overlooked—aspects of vacation home investing: understanding and optimizing seasonality. If you’re on the journey toward lifestyle and financial freedom through vacation home investing, grasping seasonality can mean the difference between average returns and outstanding profits.
The Impact of Seasonality on Short-Term Rentals
Every market experiences fluctuations—there are peak seasons, shoulder seasons, and off-peak periods. Recognizing these cycles and planning accordingly is essential for maximizing both occupancy and nightly rates. As Shawn discusses, most short-term rental owners make the bulk of their profits during peak season, but many also leave substantial money on the table by not optimizing their pricing and marketing strategies.
Three Phases of Pricing for Maximum Success
Shawn breaks down the process into three actionable phases:
- Launch Phase: When introducing a new property to the market, your approach should focus on filling the calendar quickly to gain traction, reviews, and algorithmic favor on booking platforms. This may mean competitive pricing or value adds, but the goal is momentum.
- Optimize Phase: Once your property is established, shift to stabilizing your rates. Analyze booking trends, competitor pricing, and guest feedback to determine your property’s sweet spot. During this phase, your aim is to balance occupancy with increasing average daily rates.
- Maximize Phase: In peak season, it’s time to push rates and maximize returns. However, Shawn warns against the temptation to book out your calendar too quickly at suboptimal prices. Instead, leverage data to slowly push rates higher as demand builds and booking windows shorten.
Pro Tips for Profiting in Peak Season
- Know Your Lead Times: Study how far in advance guests book in your market. If bookings come in last minute, avoid discounting too early—premium bookings may still be on the horizon.
- Dynamic Pricing: Use smart pricing tools or manual adjustments to respond to demand in real time. Don’t set-it-and-forget-it; review and tweak rates weekly or even daily.
- Longer Stays: Consider minimum night requirements or special offers for longer stays during shoulder or off-peak seasons to boost occupancy and reduce turnover costs.
- Constantly Monitor the Market: Stay on top of local events, school holidays, and other demand drivers. Adjust your calendar and prices proactively to capture last-minute surges.
Building a Business You Don’t Need a Vacation From
Shawn emphasizes that thriving in the short-term rental business is about more than chasing bookings. It’s about building a life and a business that you love—one that brings you more freedom, not just another job. This means being proactive, staying informed, and leveraging the right strategies at the right time.
Action Steps for Short-Term Rental Owners
- Audit Your Pricing Strategy: Are you treating each phase (launch, optimize, maximize) differently? If not, map out your current pricing and adjust accordingly.
- Review Your Booking Patterns: Look back at your last year of reservations. When did most bookings come in? When did you get your highest rates?
- Experiment with Length-of-Stay Discounts: Try offering discounts for week-long or month-long stays in slower seasons to increase occupancy.
- Stay Educated: The short-term rental industry evolves rapidly. Join masterminds, listen to expert podcasts, and tap into communities like Vodyssey to keep your edge sharp.
Why Being Proactive Pays Off
Shawn’s message is clear: The owners who win big are those who take action. They don’t just hope for high occupancy—they engineer it by understanding their market, using data, and having the courage to adjust as seasons change. The goal? To build a business—and a lifestyle—that you never want to take a vacation from.
Join the Movement Toward Lifestyle Freedom
If you’re ready to elevate your short-term rental game and set yourself on the path to true lifestyle and financial freedom, Vodyssey is here to guide you. Our community, systems, and coaching are engineered to help you achieve your version of the summit—without unnecessary detours or pitfalls.
Ready to take the next step? Schedule a call here and let’s start building your future together!