It’s the million dollar question... As a host, how much money is my place worth as a short-term rental on Campfly?
In general, about 60% of your potential income comes from the intrinsic value of your property, location, and amenities. The other 40% is dependent upon implementing an effective Campfly pricing strategy.
Your strategy should take into account the fluctuating demand for your property throughout the year. Campfly allows you to set different prices for any given day. In order to maximize your revenue, you want to take advantage of this flexibility.
Let’s start by determining the value of your listing.
In determining the market value of your property, you can estimate your property’s market value the old fashioned way. The following is a step-by-step system to assess your listing’s optimum Campfly price.
Until Campfly has a vast range of properties, it is best to start using google to search for current campsites and what they are offering and how they are priced. However, in time we can use the standard Campfly listing search tool to look for similar properties in your area. Limit your search to listings near you (within an hour drive) with very similar feel and amenities. For example if you are offering a rustic campsite with mountain views and activities such as fishing, trail hikes and 4 x 4 try to look for a property with similar amenities.
Remember, if a property is already booked it will not show in your results. So search for dates 3-6 months in the future. Make the length of your stay at least two to three days (as that is the average camping length).
Centre the map on your property and zoom all the way in. Now slowly expand the map until you have between 5 and 10 properties showing.
Select 3 or 4 properties that are most comparable in terms of size and quality. Also try to focus on listings that have the most reviews.
Investigate the calendar for each property. Determine the price and estimated occupancy rate of each listing.
Note: if a date is unavailable, then this can be for one of two reasons. Either the property is booked OR the host has manually blocked the date. Some hosts rent out their property on a part-time basis. These hosts manually block out the dates that their listing is unavailable. This makes it difficult for you to establish the true occupancy rate for a given property. For this reason, we recommend looking for properties with limited short-term availability that also have at least 2 reviews per month. The combination of these two factors indicates a high occupancy rate.
Finally make some additional mental notes about your shortlisted properties. For example:
Create a table to compare the prices of each property using the information you’ve just gathered.
Use this table to create an estimate of the maximum revenue per unit.
For property rustic, let’s assume that peak season and off-season are both six months, or 26 weeks. Use the following formula to estimate the most that property can make in the year.
Maximum Annual Revenue Rustic = ((125*5)+(175*2)+(100*5)+(120*2))*26 = R44,590
Maximum Annual Revenue Glamping = ((220*5)+(300*2)+(170*5)+(230*2))*26 = R78,260
Note: Remember if your land is big enough you can have multiple campsites so this number could be multiplied by 3 or 4.
The next step is to understand what will your occupancy rates be. This will take time. Spent 6-12 months using this as guidance, adjust if you feel it necessary. Post this you will begin to understand that if in the last 6 months you have been occupied 70% of the time you can use this as a guide. Therefore your estimated actual revenue is approximately:
70% x R44,590 = R31,213
70% x R78,260 = R54,782
Now let’s look at some additional Campfly price tips to help you further increase your revenue.
If you are a new Campfly host, we recommend you discount your nightly rate. Price your place 20% under your estimated market value. Then slowly increase your rate as your listing starts to receive positive reviews.
Special events bring the potential for big bucks. If there’s a music festival, marathon, or sporting event in your area, you may be able to charge up to 3x your average daily rate. At peak times, people start looking for bargains early. Make sure you don’t miss out on the opportunity to earn more money from the influx of tourists with deep pockets.
Find out what other properties in your area are charging for big weekends. But don’t assume they have as much foresight as you. Hold your prices high later than usual.
Lastly, make an effort to research special events at the beginning of each year and price these in to your calendar.
The advertised rate is the rate Campfly publishes on the main page of the search results along with your lead photograph.
Trick: Make your base rate LOW, about 20% off your actual rate. This is the price that’s displayed until someone selects your listing and dates. When a user selects your place and specifies travel dates, the actual price for those days will be calculated. If your listing is a bit more than they wanted to spend, but they LOVE it... they will still book it.