Market Performance: When comparing the first half of 2023 to the same period in 2022, the revenue per listing is down 28% across the 1600 short-term rentals on average in Santa Cruz County.
Let's put this into simple terms and a concrete example. A home that was paid out $16,000 in July 2022 should anticipate a payout of $11,500 in July 2023, based on the change in market performance.
OVR Performance: OVR has not been immune to the market conditions, but we have successfully mitigated this downturn and outperformed the market in both occupancy and revenue. Overall, OVR is outperforming the market average nightly rate and occupancy.
Lead Times - In the past few years, travelers were booking their vacation on average 60-90 days in advance (booking window) of their check-in date. In 2023 that is down to 28 days. That means we now expect most bookings to come in just 28 days before check-in.
Pricing - Since the booking lead times are shorter, we are avoiding panic and strategically holding our prices high for longer. Competitors are misjudging occupancy trends and are discounting rates, while we have been holding out for top-dollar bookings and closely monitoring this year's data.
Constantly Adapting - OVR is committed to reviewing real-time analytics, adapting to market changes, and setting appropriate market rates to maximize occupancy at the highest nightly rate.
Focused on Outcomes - OVR closely monitors guest reviews, quickly addresses repairs and maintenance, responds to guests' needs, and continues to offer a differentiated level of service to ensure sustainable performance.
The OVR Difference
To capture the most bookings, at the highest price, we are constantly optimizing around each booking platform's algorithm. Ultimately, the most important variables are Reach, Conversion and Guest Experience. This results in 30% higher Occupancy Rates coupled with higher Nightly Rates than the competition.
Step #1 Get in front of the travelers (Reach)
Market on the platforms where travelers are looking most
Understand the marketing platform algorithms and how to rank high
Step #2 Turn those views into bookings (Conversion)
Continuous review of all data points in the conversion funnel
Ongoing competitive analysis
High touch optimizations to maximize booking conversion
Step #3 Earn 5-star reviews (Guest Experience)
Absolutely critical for the long-term success of the rental
Ensuring alignment between offering and target guests
Listening to the customer and constantly striving to improve their experience