Making the Most of Concerts and Events in Short-Term Rentals

Your favorite band just announced a massive concert in town. Fans are scrambling for tickets, hotels are sold out and suddenly, your short-term rental is the hottest spot in town. You’re thinking, “Is this my lucky break?”

Big events like concerts and festivals can send your short-term rental’s demand and rates through the roof. Discover how to capitalize on these high-demand moments and why dynamic pricing is your key to maximizing profits.

How Events Shake Up Your Short-Term Rental

Big events like music festivals, sports championships or major conventions can really shake up the short-term rental (STR) market. When a major event hits your city, demand for accommodations often skyrockets, leading to a significant boost in bookings and nightly rates for your STR.

Hotels usually fill up fast during big events, sometimes reaching full capacity weeks or even months in advance. This leaves a huge number of event-goers scrambling for alternative places to stay, making STRs a hot commodity. 

Lavanda reports that big events can drive STR bookings up by 10-20% during peak times. Take Coachella, for example — last year, demand for short-term rentals jumped to over 70,000 nights, with average daily rates (ADR) skyrocketing by nearly 60%.

The best part about these events? Higher rates and bigger profits. With so many people hunting for a place to stay, it’s the perfect chance to bump up your pricing. 

Dynamic pricing tools are key here. These tools automatically tweak your rates based on demand spikes, so you don’t miss out on extra cash. For instance, during Taylor Swift’s Eras Tour, hosts across the U.K. saw a revenue boost of over £12 million, with short-term rental rates rising significantly due to the influx of concert-goers.

Events often attract short-term guests, which means more last-minute bookings and shorter stays. Instead of the typical week-long reservation, you might see guests booking for just one or two nights. While this can lead to more frequent turnovers, it also helps you maximize occupancy during high-demand periods.

Why You Need Dynamic Pricing

If you’ve been managing a short-term rental for a while, you know how quickly demand can change, especially with major events in town. Suddenly, your inbox is flooded with booking requests.

Fun fact: Over 40% of rental pros now use AI to set dynamic and optimized prices, making it the top AI/ML tool in the short-term rental industry — and for good reason. 

Dynamic pricing tools like Hostaway automatically adjust your prices based on what's happening around you. Whether it’s a surge in demand, a holiday or just a random event, it makes sure your prices match what people are willing to pay. 

But what exactly makes dynamic pricing a must? Let’s dive in.

Adjust prices in real-time

With dynamic pricing, you can change your rates instantly based on demand. 

So when a big concert is coming up and demand is through the roof, you can bump up your prices to match the hype. Once the event’s over, drop them back down to keep bookings rolling.

Boost your earnings

Events are basically money-makers if you play your cards right. When there’s a big event, like a sports game or a convention, demand goes through the roof — and so can your rates. 

Dynamic pricing ensures you don’t miss out on extra cash when demand spikes. It’s all about making the most of those peak times!

Stay competitive

You don’t want to be the only host who’s undercharging when everyone else is cashing in, right?

Dynamic pricing tools let you see what other STRs in your area are charging and help you stay in the game. That way, you’re not left behind, guessing your rates while your neighbors are making bank.

Less manual work

Forget spending hours manually updating your prices every time there’s an event or a seasonal change. Dynamic pricing tools do the hard work for you, automatically adjusting rates based on local demand, the time of year and any events happening nearby. 

Plus, it’s easy to set specific pricing rules, like minimum prices or stays, so you’re always in control. Less stress for you with more earnings on autopilot.

How to Nail Dynamic Pricing for Big Events

Want to make the most of big events? Here’s how:

Keep an eye on local events

Always be aware of what’s happening in your city — concerts, conventions, festivals, you name it. Knowing when demand will spike gives you time to prepare and tweak your rates accordingly.

Use data to your advantage

Past events can give you a good idea of how to price your property. If you’ve hosted similar events before, use that data to set the right price. See what worked before and fine-tune your prices based on those trends.

Set up alerts

Some dynamic pricing tools can alert you when demand spikes. This way, if you forget about that huge concert, your pricing tool won’t — and it’ll make sure your rates go up in time.

Learn and improve

After the event’s over, review how your pricing strategy played out. Did you hit full occupancy? Could you have charged more? Learn from each event to improve your approach for next time. 

Big Events, Big Opportunities!

In a nutshell, big events are gold mines for short-term rental hosts, but only if you’re ready to seize the moment. Music festivals, sports games and conventions drive up demand, so why not capitalize on it?

With dynamic pricing tools, you can effortlessly adjust your rates to match the hype, ensuring you make the most of these high-demand periods. Keep an eye on local events, use past data and set up alerts to stay ahead of the game.

So, gear up for those big events, tweak your rates smartly and watch those bookings roll in.