Introducing REVMAX |
How does Revenue Management set pricing for different units?
It is important to begin by saying that effective pricing is market based, not cost based. The consumer has a threshold for how high they will go, based on the value of a given complex, and the demand for a particular period. It's our job to make sure we are not selling your product for less than the consumer is willing to pay. This is referred to as 'Revenue Dilution'. When setting rates, we take a number of factors into consideration, including historical performance, weather patterns, competition and the economy.
We look at each day of the year and set rates as high as the value of the complex and demand for the period will allow. If demand for a particular period is low, it may be necessary to discount in order to stimulate bookings. Discounting is especially important during the summer months, non-holiday winter season, and many midweek periods. Please take into consideration that this is all variable depending on complex and unit type. Some unit types have high demand all week long, while others are high demand only on the weekend or during peak periods.
How does Revenue Management forecast occupancy patterns?
Occupancy patterns are forecasted using a number of tools; the first being what the occupancy was the year prior during a specific period of time. Next we look at the market trends in the area; are there generally more people coming to the resort this year than the prior year, are more people traveling this year? This is analyzed through different research reports, and by looking at the different demand patterns measuring call volume and website activity. Finally we look at special events, and large conventions and conferences that would potentially attract people to the resort in a different pattern. For example if a large convention or conference occurred then we would expect a higher occupancy during a similar event the following year.
How do demand patterns affect the pricing for my condominium?
Rental rates for individual condominiums fluctuate up and down based on consumer demand. In times of low demand, it's important to keep rates consistent with our direct competitors to avoid losing market share. During times of high demand, the Christmas Holidays for example, we set rates higher and length of stay restrictions longer so that we are saving our product for the best customer. This may mean turning away certain guests who are not willing to pay higher prices, but because demand is high, we are saving your unit to be rented by the guest who is willing to pay the price we are asking.
How can I best maximize the rental income from my vacation home?
For the 2007/2008 ski season you can stay abreast of peak demand time periods and communicate any room night reductions or cancellations by using our peak demand calendar. The peak demand calendar will become available this summer. In the meantime, please contact Homeowner Relations at 304-572-6973.
Where can I access peak demand dates for my condominium?
There are several locations:
The peak demand calendar is being created to address this issue. It will become available later this summer. In the meantime contact Homeowner Relations at ownerservices@snowshoemtn.com or call 304-572-6973.
