Along the coast of Florida’s Gulf of Mexico region, we are rarely without a tourist season. Families come during the summer while the kids are off from school, leading to a busy set of months despite the fact that this is also our rainiest season and even the beginning of hurricane season. In the winter, we get throngs of people from colder states in the north and the Midwest. A lot of Canadian neighbors flock to our area, too, soaking up the sun and the warm temperatures and delighting in the fact that winter coats and snow boots can be left at home. We’re busy during spring break. Even the holiday weeks are packed, with families, friends, and tourists coming together to spend those holidays together near the beach and the nature and all of the other attractions that are offered in this part of the sunshine state.
Local tourism is strong. It’s always going to be, as far as we can tell.
What does this mean for pricing? We know that supply and demand drives what you can charge for a vacation rental, so with a constant influx of people looking for a place to stay around Bradenton, Anna Maria Island, and other local hotspots, are prices stable or do they tend to fluctuate?
The answer is: it depends.
Our vacation rental market is moving quickly, and pricing might surprise you. The nightly rates around here are not necessarily dependent on season; it’s more about how many people are here, how many other accommodations are booked (including hotels), and what your unique property has to offer.
There are several things you need to accurately and profitably price your vacation property. Good technology helps, especially with dynamic pricing models becoming the norm for vacation property owners. An understanding of the local market, its visitors, and its tourism is also important.
Let’s look at local tourism on Florida’s Gulf Coast so you can understand why it matters and how it impacts your pricing strategies.
Understanding Local Tourism Trends
Florida welcomes around 140 million visitors a year, according to stats from the VISIT FLORIDA organization, and those millions are non-residents. Floridians are known to make traveling around their own state a big part of their planning. So, in our Gulf Coast region, we might also welcome visitors from Miami and south Florida, Jacksonville, and northern communities Ike Gainesville and Tallahassee.
Add that to the 140 million, and you can see why vacation properties are in such high demand around here.
Local tourism trends encompass various factors, including seasonal visitor patterns, local events, economic conditions, and marketing efforts by tourism boards. These trends can cause fluctuations in demand for vacation rentals, directly influencing how you should price your property.
Local Tourism and Choosing Vacation Rentals Over Hotels
Florida is pretty much a known entity. Most of the local tourists who stay here have a general sense of where they are, so they don’t need a large hotel with a front desk staff ready to make dinner reservations and recommend beaches or places to see. Even tourists who have never been here before know why they’re coming, and this is a big reason that vacationers choose a private rental home rather than a hotel.
This inclination drives demand and impacts pricing. People prefer your vacation rental over a local hotel or a major chain because:
- It provides more space. Instead of just a room or a suite, they have an entire house or a condo. There’s a living room and outdoor space.
- It provides more privacy. That outdoor space is private, and so is the television.
- It’s more convenient. Guests can do laundry if they want. They can cook meals.
You need to understand the demand in order to leverage that demand in your vacation pricing.
Local Tourism Driving Demand and Pricing
Here’s what you’ll need to understand as you establish your vacation pricing and put together a plan for what you’ll charge per-night, per week, or for longer.
- Seasonal Visitor Patterns
Tourism is often seasonal, and while we acknowledged earlier that Florida doesn’t exactly have a low season, there are still peak times bringing higher demand. For instance, beach destinations are always going to see a surge during summer, while those vacation homes closer to art museums and hiking trails and wilderness areas might see more interest outside of the summer. By understanding these patterns, you can adjust your pricing to attract bookings during different times of the year.
- Local Events and Festivals
Local events, festivals, and conventions are likely to drive your vacation pricing more than any other factor. This is where demand is its strongest. Local tourism trends are immediately impacted by whatever is going on at a given time, and this can create temporary spikes in demand for accommodation. For example, a music festival or a major sports event can draw a large crowd, leading to increased demand for vacation rentals. For example, Gasparilla in Tampa is a pirate festival that happens every February. Tampa vacation rentals can expect to be at capacity. During spring training in Bradenton and Sarasota, you can expect incoming bookings from baseball fans. Keeping track of the local event calendar allows you to adjust your prices accordingly and capitalize on these opportunities.
- Local Economic Conditions
Economic factors such as employment rates, disposable income, and consumer confidence can influence travel behavior and local tourism. During economic downturns, people may opt for shorter vacations or choose destinations closer to home. Conversely, a booming economy can lead to increased travel and higher demand for vacation rentals. Follow economic trends so you can anticipate changes in demand and adjust your pricing strategy.
Follow Marketing Efforts by Local Tourism Boards
Local tourism boards often run marketing campaigns to attract visitors to their region. These campaigns can significantly impact the number of tourists visiting your area. For instance, a successful campaign promoting your destination’s attractions can lead to a surge in bookings. Monitoring these efforts and aligning your pricing strategy with anticipated increases in demand can help you optimize your revenue.
Whether we’re talking about the Bradenton Area Convention and Visitors Bureau or Manatee County’s Tourism Advisory Board, developing relationships with local marketing teams that support this area can help you with your pricing. You’ll have better information on what’s happening in the area, and you can also work together on sharing the properties you have available for rent.
How Local Tourism Trends Affect Pricing
Let’s talk about how local tourism trends directly impact vacation rental pricing.
- Demand
High demand can drive up the price you can charge for your rental. This is not unique to the vacation rental market, but the demand in this market moves quite differently than it does in the long-term rental market.
- Competition
Local tourism trends also affect the competition among vacation rental owners. During high-demand periods, more properties may be listed, increasing competition. Make sure you know how to stand out, whether it’s offering something special like a pool, providing a discount for stays of more than a week, or incorporating something special with a booking, such as bikes or kayaks or a surf lesson.
- Guest Expectations
Understanding tourism trends helps you meet guest expectations. For example, those spring training baseball tourists will appreciate your understanding of why they’re in town. Highlight relevant restaurants near the stadium or create themed packages that resonate with your baseball audience. Meeting guest expectations can lead to positive reviews and repeat bookings.
- Long-term Planning
By keeping track of tourism trends, you can plan for long-term success. Anticipating busy seasons and potential slow periods allows you to manage your finances better and make informed decisions about property upgrades or marketing investments.
Actionable Insights for Vacation Rental Owners
Stay informed about local tourism trends by working with a local property management partner and following tourism board announcements, local news, and industry reports. You might also want to consider learning more about the tools and resources the vacation rental industry is embracing. For example, dynamic pricing is being implemented in a number of places. This allows you to adjust your rates based on real-time demand. Many owners have found they can optimize occupancy and revenue by automatically increasing prices during high-demand periods and offering discounts during low-demand periods.
You should also explore partnerships with local businesses to create attractive packages for your guests. For example, you can offer discounts on local tours, restaurant vouchers, or transportation services. Collaborations can enhance the guest experience and make your rental more appealing.
Encourage guests to provide feedback and reviews. Positive reviews can boost your property’s reputation and attract more bookings. Address any issues promptly and use guest feedback to improve your offerings.
We are always collecting data, studying analytics, and making decisions around pricing based on the information we collect and our presence in the local market. Tourism tourism trends play a crucial role in shaping vacation rental pricing strategies, and you don’t want to miss out on opportunities or under-priced your property simply because you don’t have the right information.
Partner with us for the best results. Please contact us at Anchor Down Real Estate & Rentals.
