August has the highest rates of the year, which is why every empty night costs more than at any other time. When gaps remain just a few days ahead, the usual reaction is to slash the price. It is almost never the best decision.
The problem with short gaps
Between two long bookings there are often spaces of two or three nights that nobody can take if the listing requires a minimum stay of five or seven. Those gaps are not sold by lowering the price but by allowing someone to book them. Reviewing the calendar every week and relaxing the minimum stay only on those specific dates recovers income that would otherwise be lost.
Lowering the price is not the only lever
Before touching the rate, it is worth exhausting other options that do not reduce the perceived value of the property:
- Minimum stay: reduce it in the gaps between bookings.
- Booking notice: allow same-day or next-day bookings if operations permit.
- Arrival days: remove the requirement to arrive on a Saturday.
- Visibility: update the main photo and title to highlight what people look for in August, such as the pool or air conditioning.
When adjusting the rate does make sense
If the date is still free a week ahead and similar properties are available nearby, a gradual adjustment makes sense. The key is to do it in steps and with a defined floor: a price below which letting is not worthwhile once cleaning, utilities and wear are deducted. A night sold at any price is not always a profitable night.
"The goal is not one hundred per cent occupancy but the highest total income. Sometimes that is achieved with one night fewer and a better rate."
With an eye on September
While the last gaps in August are being filled, searches for September and October are already under way. Now is the time to review shoulder-season rates, which many owners leave at summer prices or, worse still, at winter ones.
Daily review, not monthly
At Vellum Costa we review prices and availability daily throughout the summer, comparing each property with its direct competition. You receive a clear summary of what has been adjusted and why.
Do you still have free dates this summer?
We analyse your calendar and your rates with no obligation and tell you how much room for improvement your property has.
Speak to an Adviser