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How to Price Your Holiday Home

Feb 10, 2022
Guest Writer

Wondering how much rental income you could be earning from your second home? When renting out your holiday home to travelers from around the country, figuring out the ideal nightly rate can be difficult. You need to consider your market, the competition, and seasonality to name a few factors. Read on to learn what our team at Bachcare thinks you should consider when pricing your holiday rental.

Wondering how much rental income you could be earning from your second home?

When renting out your holiday home to travelers from around the country, figuring out the ideal nightly rate can be difficult. You need to consider your market, the competition, and seasonality to name a few factors.

Read below to learn what our team at Bachcare thinks you should consider when pricing your holiday rental.

1) Consider Your Home’s Location

The location of your holiday home has a strong influence over how much you can charge for the nightly rate. Not only the town in New Zealand, but also the home’s position within that town are important.

Most guests look for convenience on their holiday, so being close to a town centre where there are shops and restaurants will help sell your home before others. Similarly, guests want to be close to the popular activities in the area. If your property is walking distance to the beach or only a short drive to the ski fields, guests will be willing to pay a premium.

2) Research The Competition

A little research goes a long way. Knowing the pricing of surrounding accommodation is a surefire way to gauge how to price your home. Most accommodation websites have price comparison options, listing your competitors' entire range. 

High ranking holiday homes will give you the best idea of what you should be charging given these are usually the most popular. It’s also a way to look for ideas to improve your current offering, by comparing your holiday home against others.

3) Know Your Home’s Strengths

The number of bedrooms will certainly affect the amount you can charge for your holiday rental. However there are many other characteristics that can affect this. Guests will pay more to have their home comforts and they’ll also pay more for additional amenities that they may not have access to at home.

Wi-Fi is increasingly becoming a standard across all accommodation, however there are still many classic Kiwi baches without it. Although it won’t make you stand out, it is often a deciding factor when choosing between accommodation. It’s a feature which is more popular than ever, especially with the adoption of flexible, “work from anywhere” policies as a result of the pandemic. Other popular amenities which can allow you to charge more include pools and hot tubs.

Being pet-friendly is another money-earning feature. We’re a nation of dog lovers, so why not allow our furry friends to have a holiday too? Plus you’ll be able to charge an additional pets fee. Pet-friendly homes listed with Bachcare generate 23% more bookings than homes that don’t allow pets!

4) Keep Track Of The Calendar

Seasonality is key to pricing correctly. This will depend a lot on the location of your holiday home - whether you’re a summer or winter destination, or all year round.

On the whole, the summer months and school holiday periods are the most busy. Given the spike in demand around these periods, you can raise your nightly rate - your competition certainly will! Keep an eye on local events. Knowing what’s going on near your bach helps you understand demand for your place throughout the year.

In a similar vein, discounting your holiday home during the off-season is in your best interest.

Bachcare Makes Pricing Easy

Finding it difficult to price your holiday rental? We understand - there’s a lot to consider, research, and manage. 

That’s why, at Bachcare, we do it all for you. Our revenue management team takes into account market demand, supply, and other comparable holiday houses in your area before they set a base rate. Industry-leading software is then used to adapt your price based on seasonality and occupancy in the area to get you the most bookings possible.

So, we’re more than happy to take these decisions out of your hands. We know exactly what the market is doing and can manage everything on your behalf.


Get started by taking a look at our free income calculator tool to see the earning potential of a holiday home in your area.

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