{"id":170264,"date":"2024-04-05T14:30:26","date_gmt":"2024-04-05T20:30:26","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=170264"},"modified":"2024-06-20T04:06:54","modified_gmt":"2024-06-20T10:06:54","slug":"short-term-rental-demand-surge-pricing","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/short-term-rental-demand-surge-pricing","title":{"rendered":"Surge Pricing: How You Can Reap the Benefits of High Short-Term Rental Demand"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC8859445511\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">During much of the year,&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.vrbo.com\/451018\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">this short-term, two-bedroom rental<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;in Indio, California, a lovely, quiet, desert town about 35 minutes past Palm Springs, hovers around $172 a night. That is, until mid-April every year when thousands of revelers descend on the world-famous Coachella music festival, the listing says it is a 17-minute walk away.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">During those weeks, this very same rental commands $808 a night. That\u2019s more than a 369% increase, and it\u2019s the same for every rental in the area, in every price range\u2014for example, $410 goes to $756; $2,300 goes to $6,386, etc.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">My primary residence is in a bucolic residential suburb of New York City, where there isn\u2019t much of an&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/guides\/the-ultimate-guide-to-short-term-rental-properties\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">STR market<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;to speak of\u2014that is, until July 2026, when the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.fifa.com\/fifaplus\/en\/tournaments\/mens\/worldcup\/canadamexicousa2026\/articles\/new-york-new-jersey-stadium-host-world-cup-2026-final\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">FIFA World Cup Final comes to MetLife Stadium<\/span><\/a><span data-preserver-spaces=\"true\">, five miles from my house. I have never rented my primary home a day that I\u2019ve owned it. Will I consider putting it up on VRBO or Airbnb to capitalize on this once-in-a-lifetime event? You betcha.&nbsp;&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">To that point, there\u2019s seasonal pricing, and then there\u2019s event or surge pricing\u2014like when the Super Bowl comes to town or&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/taylor-swift-eras-tour-brings-in-27-million-dollars-for-airbnb-hosts\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Taylor Swift adds an extra night to her tour<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;near you. You\u2019ll want to take advantage of&nbsp;<\/span><em><span data-preserver-spaces=\"true\">any<\/span><\/em><span data-preserver-spaces=\"true\">&nbsp;event that drives demand, or you\u2019ll be leaving money on the table.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">So, what\u2019s the difference between dynamic pricing and surge pricing, and how do you get the best STR rate and experience for your situation?<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What Is Dynamic Pricing?<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Dynamic pricing is where you change the per-night cost of your rental based on the season, day of the week, availability of other rentals in your area, and tons of other factors. You can do this manually, or many of the short-term rental sites (including VRBO and Airbnb) offer an algorithm that will do this for you. You can opt to accept their recommendations or stick to your own devices.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">There are also software platforms that specialize in dynamic short-term rental pricing like&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/hello.pricelabs.co\/dynamic-pricing\/?utm_source=google&amp;utm_medium=cpc&amp;utm_campaign=dynamic_pricing_us&amp;utm_term=dynamic+pricing+for+vacation+rentals&amp;utm_content=pm_vacation_rental_tof&amp;gad_source=1&amp;gclid=CjwKCAjwkuqvBhAQEiwA65XxQHl8OUC_bZxs8Tyo1Pg2CsAEKJ582SAzD-pl2n6yPq4UrFfxgWdLDRoCTFYQAvD_BwE\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">PriceLabs<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;or&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.beyondpricing.com\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">Beyond<\/span><\/a><span data-preserver-spaces=\"true\">\u2014many of which API into your preferred booking platform, so they\u2019re easy to use.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What Is Surge Pricing?<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Surge pricing is a subset of dynamic pricing and works just like your Uber fees\u2014when there is very high demand, your ride home from a work dinner can go up 50% from one day to the next. People will pay more during these times of high demand, and you want to be ready when it happens.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Events that might warrant surge pricing<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong><span data-preserver-spaces=\"true\">Sporting events:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;National or college games<\/span>.<\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Entertainment events:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;Big music festivals or artists on tour.&nbsp;<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Hyperlocal cultural events:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;Festivals, conferences, or shows.&nbsp;<\/span><\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Natural occurrences:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;Leaf-peeping, cherry blossom season, or the&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.beyondpricing.com\/blog\/2024-eclipse-vacation-rental-market-trends-and-hosting-strategies\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">total eclipse on April 8<\/span><\/a>.<\/li>\n\n\n\n<li><strong><span data-preserver-spaces=\"true\">Back to school, graduation, or parent weekends:<\/span><\/strong><span data-preserver-spaces=\"true\">&nbsp;If you live near a college, hotels will often sell out during these peak weekends when families come to town<\/span>.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">What to charge<\/span><\/h3>\n\n\n\n<p><span data-preserver-spaces=\"true\">The algorithms on the rental platforms will have suggestions, but you\u2019ll also want to check out the competition yourself. Historically, towns with more modest prices the rest of the year&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/priceonomics.com\/how-much-do-home-rental-prices-surge-during-big\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">tend to go up the most<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;(percentage-wise) when there is an event.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But everything is local, and everything changes. This year\u2019s Vegas Super Bowl caused short-term prices to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/skift.com\/2024\/02\/07\/super-bowl-and-short-term-rentals-rates-surge-for-the-big-game\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">increase about 180%<\/span><\/a><span data-preserver-spaces=\"true\">&nbsp;on average, but the right amount for you really depends on rates and demand in your market.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Other Ways to Optimize<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Make sure you\u2019re ready for the higher interest and demand around these surge moments\u2014that means you may be receiving more guest messages than usual, and you may want to update your profile with your distance to the event.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Think about ways your listing can stand out relative to the event. When I list my house for the World Cup, you can bet I\u2019m going to take a picture of my huge backyard with the already-set-up soccer goals and let potential guests know we are ready for them to get their kicks in between matches!<\/span><\/p>\n\n\n\n<div class=\"wp-block-group has-slate-200-background-color has-background\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h2 class=\"wp-block-heading has-text-align-center has-theme-slate-dark-color has-text-color\"><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-theme-blue-color\">Exclusive Breakdown and Data Analysis of the Hottest Region for Investors<\/mark> <\/h2>\n\n\n\n<div class=\"wp-block-media-text has-media-on-the-right is-stacked-on-mobile is-vertically-aligned-center\" style=\"grid-template-columns:auto 34%\"><div class=\"wp-block-media-text__content\">\n<p>It&#8217;s no secret the Sunbelt has been a primary focus of investors for years due to appreciation and rent growth. But which markets offer the best opportunities for cash flow?<\/p>\n\n\n\n<p>Download our <strong>Sunbelt Market worksheet<\/strong> for a synopsis of the most popular metros and states for investors, and get the <strong>full data for all states and markets<\/strong> in our accompanying Sunbelt Market Intel spreadsheet.<\/p>\n\n\n\n<div x-data=\"frictionlessSignupForm()\" class=\"button-account-type alignleft\">\n\n  \n\n  <!-- Guest Button -->\n      <template x-if=\"!$store.wp.isMember()\">              <button x-on:click=\"$store.wp.displaySignupPrompt()\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\">Sign Up to Download<\/button>\n          <\/template>  \n  <!-- Free Member Button -->\n      <template x-if=\"$store.wp.isMember() &#038;&#038; !$store.wp.isPaidMember()\">              <a href=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/04\/Sunbelt-Markets.zip\" target=\"_blank\" x-on:click=\"window.analytics.track(&#039;Blog | Market Intelligence | Sunbelt&#039;, {\n            referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/short-term-rental-demand-surge-pricing&#039;,\n            account_type: &#039;free&#039;,\n          });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\">Download the Data Worksheet<\/a>\n          <\/template>  \n  <!-- Pro Member Button -->\n      <template x-if=\"$store.wp.isPaidMember()\">      <a href=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/04\/Sunbelt-Markets.zip\" target=\"_blank\" x-on:click=\"window.analytics.track(&#039;Blog | Market Intelligence | Sunbelt&#039;, {\n          referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/short-term-rental-demand-surge-pricing&#039;,\n          account_type: &#039;pro&#039;,\n        });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\">Download the Data Worksheet<\/a>\n    <\/template>  \n  <!-- Frictionless Popup -->\n  <\/div>\n<\/div><figure class=\"wp-block-media-text__media\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"1000\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/04\/MI-April24_Blog-Thumbnail.jpg\" alt=\"sunbelt markets market intelligence\" class=\"wp-image-170016 size-full\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/04\/MI-April24_Blog-Thumbnail.jpg 1000w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/04\/MI-April24_Blog-Thumbnail-300x300.jpg 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/04\/MI-April24_Blog-Thumbnail-150x150.jpg 150w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/04\/MI-April24_Blog-Thumbnail-768x768.jpg 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2024\/04\/MI-April24_Blog-Thumbnail-200x200.jpg 200w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><\/figure><\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>During much of the year,&nbsp;this short-term, two-bedroom rental&nbsp;in Indio, California, a lovely, quiet, desert town about 35 minutes past Palm Springs, hovers around $172 a night. That is, until mid-April [&hellip;]<\/p>\n","protected":false},"author":613680,"featured_media":170267,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7271,7119],"tags":[],"class_list":["post-170264","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-short-term-rentals","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/170264","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613680"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=170264"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/170264\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/170267"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=170264"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=170264"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=170264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}