Setting Cape Town Self Catering Rates & Other – Michael Farr – Sun International
Setting Cape Town self catering accommodation rates.
This is a skill. But a skill is useless if you if your ego runs wild.
I have come across many owners who want the high rate without understanding supply and demand.
I don’t care how you prove your rates; if you have poor occupancy you have nothing to bank.
So show me your bank statement during winter, don’t show me your high rates.
But let me get back to my point…..
As you may know Michael Farr is one of the main dudes at Sun International and he was asked a few questions by Francois Williams – Burger.
The interview focused on hotels, tourism, the rand and visas.
Francois asked if 5 star hotels can still survive after the over-supply during the World Cup 2010?
The answer is relevant to us in the self-catering market:
The fear is unfounded as long as rates are set at what local clients can afford.
My opinion is that self catering rates have increased a lot.
And with Cape Town’s popularity, it will still increase over December, January and February.
But then from April to end October the over-supply of self catering homes will dictate who banks money and who brags about their high rates.
The not so popular months are the months where you compete on rates and if your local clients cannot afford it you’ll suffer.
Let me qualify; it’s not only affordability. No!
Airbnb and others have made it easy for every Koos and Annie to bring their lovely home to our clients.
And everyone fights for attention.
They get attention with low rates. (I am comparing two similar homes in the same suburb).
So. Know your rates.
If your twin sister with the same house has lower rates than you during winter she will bank money and you will continue to dream.
Read also Why You Should Be Making Love to Airbnb?
How do you feel about rates? Why not leave a comment below?