Marketing for a vacations rental website

Prices for the German family market

27  November  2020

This is a practical example of how to set the rates for a vacation rental, located in a spot from the Mediterranean basin, such as Mallorca and aimed at the German market, segmented by families with children, for 2022.

The factors, which will determine the seasons, with their price ranges, will be:

  1. The climate

  2. School holidays; In this page; schulferien.org, we find the information about school holidays and public holidays, of the different states.

These are the seasons, to define the base prices;

  • Low season: April, May and October.

  • Mid season: June and September.

  • High season: July and August.

In winter, the vacation home in this example will be closed, but if we wanted to open it, we would have to define a fourth season, for the winter months.

The months of April and May

The month of April with the arrival of spring and good weather, is when we can expect the first guests. Most regions start the Easter school holidays on Monday, April 11th, lasting two weeks. On the first days of April, we will adjust the price for the low season downwards, until Saturday the 9th, which we will be able to adjust upwards again, for the first week of the school holidays.

After Easter, the demand decreases, since it is not yet hot in summer, to enjoy the sea and in the month of May, there are no school holidays. Therefore, from Monday, April 18th, we will adjust the price for the season downward, until the end of the month.

Corpus Christi and the month of June

Corpus Christi Monday, June 6th, 2022, is a public holiday throughout Germany and some regions, among the most populated such as Bayern, begin a school vacation of almost two weeks. Also, in others, on Friday May 27th, there is no class.

For all these reasons, the price of the average season in June can be advanced to Saturday, May 28th and the Corpus Christi long weekend, which in 2022 runs from June 4th to 6th, the prices of the mid season on the rise. Recovering the base price of the season until the last week of June, when they can be adjusted up again, until Friday, July 1st, since the weather is very good and also the state of Nordrhein-Westfalen, one of the most populated, begins its summer school holidays on Monday, June 27th.

The months of September and October

The first week of September, the weather is still good and in addition, some states like Bayern, have not finished the summer school holidays yet. Therefore, the price of the mid-season can be adjusted upwards, until Friday the 9th.

The price for the mid-season can be kept until Monday, October 3rd, which is a public holiday throughout Germany, to celebrate reunification (Tag der Deutschen Einheit).

Autumn school holidays

During the month of October, schoolchildren enjoy the autumn holidays for two weeks. During this period, or at least the first week, the price of the low season can be adjusted upwards. Although in 2022, most states will start this vacation the last week of October, which is already a bit late, because the weather is no longer so good. Therefore, we will leave the base price of the season.

Dynamic pricing

Analysing the reservation history, we see that the average number of days between the reservation date and arrival is 50 days, while during high season, many reservations are confirmed more than 4 months in advance. In addition, we see that reservations confirmed less than 30 days in advance, are an exception.

With these references, if we have some days available and offers had to be made, they will have to be published more than 30 days in advance, to the arrival date, especially if they are not in low season. In the same way, we will be attentive to demand, to raise prices. For example, if on January 10th for the high season, we only have the first week available, we could adjust the price upwards.


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