Vacation Rental Glossary
Vacation rental metrics or key performance indicators are critical measurable aspects of your business that you can lean on to understand and manage your business better. From occupancy rates to referrals your vacation rental is getting, it can be helpful to track these metrics. “You can’t improve what you don’t measure!”
If you understand the business metrics, you and/or the vacation rentals’ manager will be able to analyze the return on your investment and return on revenue more accurately to improve your operations.
How does it help you?
Before we move to analyze the various KPIs, let’s dive deeper into understanding your vacation rental.
There are also terms that are specific to PriceLabs that you might need to understand to utilize our solution to its maximum potential.
PriceLabs Terms specific to our different offerings:
Accessible tourism is a conscious effort to provide an all-inclusive travel experience. It essentially means that tourist destinations, services, stays, and products are accessible to all people regardless of their physical or intellectual limitations, disabilities and/or age.
Active dates indicate the number of days your listing was open for reservations. If you block your calendar for about two months - then your active dates for the year would be 300 days.
Active listing is a listing that is live on the Channel Manager or OTA. It might have also been live in the last 15 days.
Airbnb plus is a program by Airbnb that incentivises hosts for their exceptional guest experience. These properties receive benefits such as higher visibility, improved reputation, and added services. It is a selection of the highest quality homes with hosts known for great reviews and attention to detail. Every home is verified through in-person quality inspection to ensure quality and design.
Airbnb superhost is a host who prioritizes guest experiences and ensures that every one has a great stay in their Airbnb. Airbnb evaluates hosts quarterly and will automatically adjust your status if you meet their qualifications. You can get up to 22% more bookings by becoming a Airbnb superhost. Read More
Alternative accommodations are used to refer to non-hotel accommodation offerings. These are private rental accommodations that have been popularized by platforms like Airbnb.
Sometimes also called resort fee. Extra amount that guests pay on top of the nightly price to access certain amenities of the vacation rental like swimming pools, tennis courts, barbeque nights, etc.
API is an acronym for Application Programming Interface. It is a software intermediary that allows two or more applications to communicate with each other. You can create an integration between two software platforms that allow data sharing.
Average Booking Window
It is calculated as the average number of days between the day of reservation and check-in.
Average Daily Rate
It is the total rent divided by the number of nights within a given time period. An indicator of the average price of a vacation rental, it is calculated by dividing the total revenue generated in a vacation rental by the number of nights the vacation rental was booked. It is essentially the booked rate, and does not include the prices for open nights. Read More
Average Length of Stay
It is used to calculate the number of nights the average guest has booked in the property. It is calculated by dividing the total number of nights the vacation rental is booked by the total number of reservations. This is a vital metric to track because an increase in short-term stays can increase maintenance and operation costs in your vacation rental property. Read More
Base price is the average rate that a property manager charges across the year. All market factors, demand patterns, and customisations are applied to the base price. This rate will fluctuate based on the quality of your listing.
Every listing in the market dashboard is, by default, grouped by the number of bedrooms they have advertised on Airbnb. A ‘room’, ' studio’, and ‘RBHK’ category groups all listings with 0 or 1 bedroom advertised as a shared, private, or hotel room.
These are specific dates where vacation rental managers do not accept any reservations. This can be because the vacation rental is booked for personal reasons or even for maintenance.
A tool that visually represents the number of reservations booked over a certain period. This tool can analyze your booking trends, such as when people are booking reservations on your property.
Fees that agencies, channels, or websites charge guests for booking through them. It is the administrative fee channels, agencies, or websites charge on top of your daily rate.
The rate at which bookings are made in a vacation rental during a set time.
It is the point when the monthly rental income is enough to pay all operating expenses.
Fees that guests have to pay if they cancel after the cancellation deadline has expired. These can be a flat amount withheld from the refund. They can also be a full forfeiture of the deposit paid. Deposits are often a percentage of the total cost, for example, 30% or 50%. These are usually non-refundable. The US always includes it in the rental agreement or contract.
It is the percentage of reservations that have been canceled during a specified period.
Specific days of the week that vacation rental managers dedicate for bookings to begin and end. It essentially is the check-in and check-out date.
Fees that agencies, channels, or websites charge owners or vacation rental managers for booking through them. In the case of Airbnb, it is charged to the guests as a service fee and a percent commission to the owner or property manager.
A channel manager is a software tool that allows you to simultaneously sell rooms on several connected booking sites (channels). The software automatically updates your availability across sites when a booking is made. Essentially, it is the technological equivalent of having a 24/7 global sales and reservations department.
Channels are places where people list their property, and guests can book slots. For example, TripAdvisor, booking.com, etc. You can list your property, book slots for guests, and automatically send bookings to the property management system or channel manager through channels.
A one-time charge by hosts to guests for cleaning the vacation rentals. The cleaning happens in the window between guests’ check-out and other guests’ check-in. This can be effective for guests’ who have booked longer stays. Read more
A ‘Comp set’ or competitive set is a list of other competing properties within a specific market that potential customers compare against your listing when choosing to book a property. It is a group you put together when creating your competitive study based on relevant, specific selection criteria compared to your property.
This tracks the number of home improvements that impact the property’s visual appeal. Home improvements can be anything from a simple painting being hung in your lobby to a complete makeover of your property.
We recommend the best data-driven prices for your listings. However, at times, you might want to customize certain aspects of your pricing based on your preferences or your observations of the market. For example, for last-minute bookings, we apply last-minute discounts by default. You, on the other hand, might not want any discounts. In these cases, you can customize your last-minute settings to ensure you control your pricing. Read more
Also known as a security deposit, is a refundable amount that a vacation rental owner collects from their guests. This guarantees that guests will return the vacation rentals in the same condition. If there are any damages to the property, the host can make deductions from the damage deposit.
Day of the week adjustments
A few days might be performing better than other days on your property. For the majority of the properties, the weekend works better. However, if you have corporate housing accommodation in the city, you might have more bookings during the weekday than on the weekend. We give you the liberty to make adjustments per the trends you observe in your listing. Read more
Depth of inventory
It is the number of similar vacation rentals that are available in the specified area.
Dynamic pricing utilizes variables rather than fixed prices to continuously adjust your prices in response to real-time supply and demand. This allows businesses to maximize revenue with automatic pricing adjustments instead of manual adjustments. Read more
Gross Booking Revenue
The total revenue that a vacation rental earns from bookings including taxes and fees.
Inquiry to Booking Conversion Rate
It is calculated by multiplying the number of inquiries received by the total number of bookings for the property.
Last synced gives an indication of when the listing has been last updated. New listings will show as ‘Not Synced’.
Last-minute adjustments are added to help get bookings for dates that are close-in and have a reduced chance of getting booked. This can either be a premium or a discount. You are in full control of your last-minute prices. Read more
Length of stay and booking window trends
With the length of stay and booking window trends, you can analyze how many nights get booked from reservations with different booking windows and different stay lengths. These can be used to optimize your minimum stay customizations. For example, if you see many long bookings happening at least three months in advance, you can change your minimum and max prices accordingly.
A vacation rental that is open for bookings. For example, if you are renting multiple rooms within one apartment, then each room you have made available for booking is a listing.
Listing health is the indicator of your property’s performance against your property and the market in any specified period. You can set any period that you want to analyze. For example, if your property has been booked for 15 out of 30 days, your listing occupancy would be 15%. You can compare this with that of the market (average market listing health) and understand how close to or far from the market occupancy your listing is.
Listing level metrics
The listing level metrics scatter plot helps you identify the performance of each listing in your portfolio. By default, we display the next 30 days' occupancy on the y-axis and the number of days since the last booking on the x-axis. Both of the axes are configurable for your convenience.
Your listing name is imported from channels/OTAs; this can not be changed on PriceLabs. However, you can use tags to nickname your listing to easily identify them. With the listing name, the channel/PMS and the account the listing belongs to are mentioned. This hyperlink will take you to the listing page or calendar in your PMS or channel listing page.
Market dashboards are fully automated personalized dashboards that help you to track vacation rental data anywhere in the world. You can analyze your property's various KPIs to make informed decisions while setting up your pricing strategies to maximize revenue. It helps you have a better look at other markets whenever you decide to expand your portfolio. Read more
Max price is the maximum price a property manager sets for their listing. Even with multiple customizations on your base price, the pricing will not exceed the max price.
Minimum far out price
Minimum far-out price can be used to ensure prices for dates beyond a certain amount do not fall below the desired amount. Setting this price below the listing’s minimum price will not have any effect as PriceLabs prices will not go below the minimum price. Read more
Min price is the lowest price a property manager sets for their listing. Even if you add multiple customizations, the price will not go below the minimum price set for your listing. If you add a date-specific override, then your minimum price will be the override. For example, if you have a minimum price of $70 and you set a date-specific override of $50, then your minimum price will be $50. (You will also be shown a pop-up or warning about the change, once you confirm it, the change will happen)
Minimum weekend price
Minimum weekend price can be used to set a different minimum price for the weekend, even if the weekend might be last-minute in the low season. In this case, your existing minimum price will be used for the weekdays. Setting this price below the listing’s lowest price will not have any effect as PriceLabs prices will not go below the minimum price. Read more
Net Operating Income (NOI)
It is used to analyze the profitability of a vacation rental calculated by subtracting all necessary operating expenses from the sum of the revenue from the property.
Nightly Price or Daily Rate
The price per night is advertised to the consumer by the vacation rental manager or the channel. It is essentially the price your potential customers pay to stay in your vacation rental. This is always rent-only or could also include external fees depending on the channel.
It is the occupancy that a vacation rental is expected to book within a specific period.
Online Travel Agencies (OTA)
OTAs are places where people can book hotels, short-term rentals, cars, and tours. You can list your service, book slots for guests, and automatically send bookings to the property management system or channel manager through channels.
Orphan day Prices
By default, the Pricelabs algorithm applies a 20% discount to gaps of 1 or 2 open nights between bookings. There are two options - a percentage-based adjustment or a fixed price for orphan gaps. This can either be a premium or a discount. You are in full control of your last-minute prices. Read more
An orphan gap occurs when some nights are left unbookable due to minimum requirements set in the length of stay. For example, if you require a 7-night minimum and bookings leave less than 7 nights open between the last checkout and next check-in. Read more
OTA ranking is the method to rank vacation rental properties based on the quality and completeness of their visual and textual content. It is influenced by: photos and text descriptions, reviews, commission, conversion, and quality of content.
Preparation Time Before Arrival (PTBA)
It is the minimum number of days required to prepare the vacation rentals for the booking.
Property management System
Property management systems (PMS) are designed to take care of the day-to-day operations of vacation rentals. They integrate with various other systems offering a wider range of operations management tools such as storing and tracking availability of all accommodations, coordinating cleaning & maintenance activities, guest messaging, and sending availability and rate information to the channel manager.
Return on Investment (ROI)
It is used to evaluate the efficiency of investment by dividing the profit from the vacation rentals by the cost of the property.
Return on Revenue (ROR)
It is used to measure the profitability of the vacation rentals by comparing the net income generated for each revenue.
RevPAR can effectively predict your ADR’s success at filling available rooms. This, therefore, provides a constructive view of your property’s operational performance. It is the balance between the occupancy rate and ADR; that is, it is the occupancy rate multiplied by the average daily rate. Read more
Sync prices toggle shows the current status of the property. Prices get updated every night if the switch is ON and green. If the switch is OFF and gray then we will not change prices.
Trends by booking creation date
The trends by booking creation date show the number of bookings made on any particular date. With this data, you would be able to analyze when you get the maximum number of bookings and optimize your pricing strategy accordingly.
Trends by stay date
Trends by stay date show various trends by stay dates which can be summarized by the month, week, day, or even by the day of the week to easily compare year-over-year metrics.
Vacation Rental Management Cost
Also, short-term management costs. Total expenses in managing a vacation rental property. The expenses that you may come across are cleaning fees, maintenance costs, broadband costs, etc.