The Bahamas vacation market has seen tremendous growth and is now stabilizing. Three years ago, it was easy to get bookings, and once you had your place ready to host and you set your price, you wouldn't need to do much to get bookings.
However, the market has become more competitive today. With over 4000 inventory in the Bahamas, bookings have now begun to slow down, and challenges are more prominent than they were half a decade ago.
Here are five reasons why this is so:
1/ Your price is too high
This is the most common mistake a homeowner can make. Most of the time, we tend to think that lower prices would attract the wrong type of guest and end up getting our place damaged. It could also be that we have invested so much time and money that we have a benchmark price for the homes to be.
There are several reasons for overpricing, but you should consider lowering your price instead. First of all, you need to understand your market and compare your rental to others. This will give you an idea of how much you can ask, and help you with setting prices.
Secondly, you need to understand who your typical guest is. Do you have a five-bedroom apartment for a family, or do you have a studio on the beach for surfers? Understand who they are and how much they are willing to pay for what you offer. If you are considering getting into a vacation rental, do your due diligence before you spend a cent. Software such as AirDna and Beyond Pricing can be very helpful in setting up your pricing.
2/ You don't have a brand
In a competitive market, setting yourself apart is vital, and you should know that branding is the basis of it all. Understanding things such as who you yare, your typical guests, what they like, how they want to feel, and what they are looking for when on vacation will help you put together your branding.
Also, your listing P2P websites, and even your website itself, will describe what differentiates you from your competition. Your photos will show your potential guests that you are a fit for them.
So, work on your branding, make sure you describe your rental in the best way possible and get your place some beautiful photos that show the perfect home away from home for your future guests. Tell the story that will make them choose you over your competition.
3/ You are on too many P2P websites
You might think that advertising on 50 different P2P websites will help you get more bookings, but it might be the opposite. P2P websites work on algorithms, and to get on the first page, one of the main factors is your calendar availability.
Having your calendar blocked because of other website bookings will affect your ranking. The best option is to focus on one website and get a second as a backup, so you can master the algorithm and keep high rankings at any time. Choose your P2P website carefully and stick to it!
4/ You don't understand the algorithm
Let's talk in more detail about the algorithm. To get a high ranking on the first page, the P2P websites have specific rules that push the listings that are respecting the criteria. These are the listings that get higher chances of being booked. Remember that they get paid per booking, so they will push listings that they believe will be, the more likely to get booked.
Calendar availability, pricing update, listing update, listing search, listing wording, and reviews are only a few of the criteria used to identify these listings and push their ranking. To understand how each of these criteria can affect the ranking of your listing, you need to start changing things within your listing and spend some time updating your listing daily.
5/ You don't have a smooth process for check-in, check-out, and guest communication
You talked about the algorithm and how it can affect your ranking on the P2P website you are listing your property on, reviews can affect your position. Most of the potential guests look first at the photos; then, they check the reviews. They value the reviews more than the descriptions themselves. So, making sure you have the best reviews possible will all come down to your guest experience!
You can be on the most beautiful rental with a big basket of whatever local product you have for them, but if you don't perfectly orchestrate your check-in and out and your communication, your review will still be negatively affected. Make sure you are always in close contact with your guests before their arrival, and that they understand your process to make it as smooth as possible!
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