STR with flexible accommodations and rate based on size of the group

STR with flexible accommodations and rate based on size of the group

Brusly, LA · Member since 2017 · 44 posts · 36 votes

I am interested in learning from anyone that has an STR business model that is flexible or adaptive to the size of the group of guest they are hosting. This would be a property with an upstairs area that can be closed off, a mother in-law suite, or an ADU for example. The secondary space would not be accessible to a couple or smaller group that does not need the space and they would pay based the nominal rate of a similar small size accommodation. For example if there is a primary small cabin on a property that is perfect for a couple, but there may be a bunk house, ADU, or other quarters which would make expanding the accommodations for a larger group or family, then that area would be included in the higher rate and the entire property would be accessible for their use. Under this scenario the property would never be occupied by two different groups or reservations. If there is someone doing this I would be interested in knowing if there is any confusion created within the reservation system, how well guest abide by the maximum number of guest for the smaller/primary portion of the property and or any other conflicts this could create including loss of revenue if the smaller accommodation is reserved when there is the potential for reserving the entire property at a higher rate to someone else. Perhaps my idea to cast a wider net with one property would become a disadvantage, there could be advantages too. I have not seen this type of arrangement discussed here in the forums. Where there are possibilities, there is money to be made. Let's talk about it.

Thanks and well wishes,

Brady

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  • Member since 2022 · 1k+ posts · 1k+ votes
    3y

    If there are 2 separate stand alone units, such as a primary house with a basement/carriage house/detached garage with it's own kitchen and bathroom, then I would simply list them as 2 separate units on the OTAs. I would be transparent about this and post the link for the other extra unit in the listing for each and sell it up as a benefit for larger groups. Big groups will be more than willing to book both. Otherwise, be sure that each unit is private enough in regards to noise control, access, parking, private outdoor space, etc so that separate groups are not forced to co-mingle if they don't want to. You would probably not want to have a huge spread in guest numbers between them, because a 8-12+ guest place is probably going to make too much noise for a mellow couple in the ADU, unless the units are far enough away to essentially be different properties.

    Otherwise, I have thought about the exact scenario above for a 2 bedroom with 2 masters suites. Give 1-2 guest parties the option of renting a single room and keeping the other guest area locked via smart locks, then unlock the other bedroom with 3 guests for more and charge more for it. Could be a great idea and would allow you to have a lower cleaning fee to be more competitive. I think that this could be doable with the recent push by AirBnb to upgrade their single room offerings. 

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