Earn More / Starting Out

The Ideal Pricing Strategy for Rental Properties in the French Alps

Whether you’re looking for a high return on investment or just to see the bills and rental costs covered, OVO Network works with a range of pricing strategies to ensure financial targets are achieved.

Having worked with many owners since 2010, we know that different pricing strategies suit different owners. The decision on which approach is better depends on a mix of factors including…

  • Level of risk aversion
  • Individual owner experience
  • Property management team logistics

In this post, we’re going to cover the deciding factors, the principle pricing strategies and how OVO Network develops the ideal solution for each owner…

Before deciding on a strategy, consider the following…

Pricing strategies can change from the time the property launches on our website, and they can vary from one year to another. The factors which influence the choice of strategy include…

  • If it is the first year of rental
  • Whether the property was launched several years ago
  • The number of weeks retained for owner use (in particular peak week retention has a big impact on potential income)
  • Whether the property is available for renters year-round
  • if the calendar allows short stays and any day arrival all year long (which also depends on chalet team availability)

What are the main pricing strategies for my rental property?

1. A pricing strategy to maximise occupancy all year round

There is an easy way to maximise year-round occupancy, which is to market with reasonable prices. This means either at market price or slightly under the market price. As well as this, offering attractive short stay rates in the low season. 

With this strategy, the focus is on selling all weeks at the market price to maximise the rental income owners can achieve.

At OVO Network, we monitor the booking calendar and recommend price reductions when necessary in order to secure bookings.

By looking at annual revenue/profit as a whole, we can help to maximise profit through accumulated bookings.

Is it right for you?

At OVO Network we often launch with this strategy to help establish the property, build its profile and generate testimonials.

Newly launched properties are often incomplete as they miss the alternate season exterior photography (ie the opposite season to the one the site was launched in), which can make it harder to attract bookings.

As the property becomes more established we can progressively increase prices as seasons go by.

2. A pricing strategy to maximise the profit margin

This is a more risky strategy. It includes pricing weeks higher than the market, risking generating fewer bookings, but at a higher rate. 

We don’t usually recommend this strategy at the launch of a new property. This is because it doesn’t help the property gain strong online visibility, plus it can be more stressful for the owner.

It is considerably more difficult to achieve out of season bookings using this strategy. The property can suffer because there are fewer guest testimonials, so there are fewer opportunities for word of mouth referrals and recommendations.

Is it right for you?

“We only want to sell the property at high-prices or not at all.”

Most of the owners who use this strategy are worried about wear and tear, and they would prefer to not rent rather than renting for a small profit.

This “high-margin” strategy makes it very difficult to attract low season bookings (which will have an impact on annual revenue).

It can also be difficult to have a loyal manager and cleaning team due to an irregular spread of work year-round.

To optimise revenue with this strategy, it is very important for owners to not book peak weeks for their own use.

3. Hybrid pricing strategies

In addition to the two core pricing strategies above, there are a number of variants which combine different elements such as…

  1.  High margin in high season, then very competitive rates off-season.
  1. Very high occupancy in the high season thanks to reasonable rates, but only accepting off-season bookings that are really worth the costs (for example, pricing at the same rate no matter the length of stay).

Subscribe to our Monthly Newsletter

Insights on running a holiday rental property, expert opinions and the latest industry news all sent straight to your inbox