Your short-term rental market property provides flexibility and opportunities for exceptional returns on your investment.
Knowing when demand fluctuates over a typical year helps set expectations around revenue and building a positive, transparent relationship with your property manager.
Understanding what dynamic pricing means and what our Luxury Escapes team does to ensure occupancy and protect revenue year-round contributes to landlord confidence.
Broadly speaking, landlords will see three revenue brackets for their short-stay properties, corresponding with low, mid and high season periods.
When are High, Mid, and Low Seasons?
If you’ve tried to find accommodation during the summer break in Europe or other popular holiday destinations, you’ve encountered the impacts of seasonal demand: limited availability and higher prices.
However, Dubai’s summer, from June to August, is the low season.
The UAE high season coincides with the return of glorious weather from November to April and an increase in visitors from other, wintery locations.
September, October, and May are mid-season months.
In all seasons, rates are adjusted for weekend and mid-week bookings. When a guest books for nights across both, the total price they pay will incorporate those variations.
Under dynamic pricing, the Landlord of a property attracting multiple night and longer bookings is not disadvantaged.
What About Special Events?
Cooler, high-season months in Dubai see demand increase because more conferences, concerts, sports, and other events occur.
If your short-term or vacation rental property manager mentions ‘blackout dates’, they are referring to public holidays, Christmas, New Year, and major events.
Demand is reliably high at these times, so the per-night price for the property is locked-in and the dynamic function disabled.
Your property manager will adjust prices to ensure occupancy during blackout periods only if needed.
At other times of the year, events like Dubai Summer Surprises and the Shopping Festival prompt some low-season increase in demand.
Culturally important periods like Eid, which may occur during the high, low, or mid-season in different years, also increase demand and higher rates.
Dynamic Detail
Dynamic pricing takes advantage of demand during the high season, increasing the average daily rate (ADR) for a property. It also achieves better occupancy rates in the low season, protecting landlord revenue.
Additionally, pricing is specific to the type of property and responsive to the dynamic demand for the neighbourhood where it is located.
Your property manager knows where your property is situated in its niche, when higher rates can be set and can share comparative information for properties like yours.
Protecting Low Season Revenue
An empty property produces no revenue.
For this reason, the manager of your short-term rental property pays attention to both daily rates and occupancy rates.
As well as ensuring competitive pricing of your property to increase occupancy, Luxury Escapes Vacation Homes protects landlord revenue in other ways.
One strategy, supported by the marketing team, includes contacting previous guests and inviting them to come back by offering summer pricing incentives.
This campaign is activated as Dubai enters the low season.
Dynamic Pricing Responds Promptly to Market Conditions
Your experienced Luxury Escapes Vacation Homes property manager draws on expert local market knowledge and uses dynamic pricing to achieve high ADR and high occupancy.
This protects landlord revenue and maximises the value of your investment.
If you have any questions about how dynamic pricing is used to achieve revenue from your property, speak to your property manager.