Assessing Your Property’s Performance Against Market Averages
In the fast-paced short-term rental market, understanding how your property stacks up against local competition is essential for sustained success. Competitive benchmarking uses data to compare your property’s key performance indicators (KPIs) with those of the broader market, revealing opportunities for improvement and growth.
Why Competitive Benchmarking Matters
Without clear benchmarks, property owners and managers risk overpricing, underperforming, or missing market shifts. Benchmarking provides clarity by:
- Measuring occupancy, pricing, and revenue against comparable listings
- Identifying performance gaps and strengths
- Informing data-driven decisions for pricing, marketing, and operations
- Enhancing competitiveness and profitability
Key Metrics to Benchmark
Using bnbapi.com data, you can focus on the following core KPIs:
- Occupancy Rate: Percentage of booked nights versus total available nights.
- Average Daily Rate (ADR): Average income per rented night.
- Revenue per Available Rental (RevPAR): Combines occupancy and ADR to measure revenue efficiency.
- Booking Lead Time: How far in advance bookings are made compared to competitors.
- Cancellation Rate: Frequency of booking cancellations, impacting net revenue.
How to Perform Competitive Benchmarking with bnbapi Data
1. Define Your Competitive Set
Identify properties similar to yours based on location, size, amenities, and target guest segments. bnbapi’s granular listing data allows precise filtering.
2. Gather Performance Data
Extract occupancy, ADR, and revenue metrics for both your property and your competitive set over a defined time period.
3. Calculate Market Averages
Compute average KPIs for your competitive set to establish benchmark values.
4. Compare and Analyze
- Occupancy Comparison: Is your property booking less frequently than similar listings?
- ADR Gap: Are your prices above or below market average? Are they aligned with occupancy?
- RevPAR Efficiency: Are you maximizing revenue given your occupancy and pricing?
- Lead Time Differences: Adjust pricing and promotions based on how early guests book compared to competitors.
- Cancellation Trends: Address factors that may cause higher cancellations.
5. Take Action Based on Insights
- Adjust pricing if you are underperforming in ADR or occupancy.
- Enhance marketing or guest experience to reduce cancellations.
- Optimize availability during high-demand periods identified from competitive data.
- Consider property upgrades if competitors offer more appealing amenities.
Benefits of Ongoing Benchmarking
Market conditions shift rapidly. Continuous benchmarking with bnbapi data ensures you stay competitive, spot trends early, and adapt pricing and operations proactively.