Running a successful holiday rental is about more than filling your calendar. While increasing bookings matters, the real goal is maximising revenue and boosting profits.
This article shares practical strategies holiday rental owners can use to achieve both. From smart pricing and minimum stay strategies to offering extra services, optimising insurance, and embracing eco-friendly upgrades, each approach is designed to grow your business.
You will also find tips on encouraging direct bookings and repeat stays. These methods help you earn more while making your guests’ experience better and smoother.
Equipping Your Holiday Rental and Improving Its Appeal
You can’t expect to charge premium rates if your holiday rental doesn’t deliver premium experiences.
When your property offers more than the basics, think hot tubs, gourmet kitchens, themed dccor, or other in demand features, you can start raising your nightly rates confidently.
AirDNA research shows that luxury vacation rentals with specialised amenities like golf simulators or themed decor can achieve nightly rates between $1,000 and $2,400, well above local averages.
It’s like negotiating a salary. If your CV doesn’t showcase specialist skills or experience, you can’t realistically ask for more. The same applies to your rental.
Take a good look at your property, research your target audience, understand your holiday rental’s unique selling proposition and value proposition, and brainstorm what you could add. Could a small room be transformed into an Instagrammable space? A VR room? Or perhaps there’s space outside for a hot tub?
Unique or luxury amenities aren’t just nice extras. They’re your ticket to charging higher rates and standing out in a crowded market.
Offering Concierge and Additional Services
Adding concierge or extra services is a simple way to increase revenue without changing the property itself. Guests are willing to pay for convenience, unique experiences, or just a little luxury while they stay.
According to industry data, properties offering comprehensive concierge services achieve occupancy rates 15–20% higher than comparable properties without these services .
This could be anything from arranging airport transfers, private chefs, or guided tours, to offering in stay spa treatments, grocery delivery, or early check in and late check out. Even small touches like providing picnic baskets, wine, or local craft hampers can make a difference.
Think about your target audience and what would make their stay easier or more memorable. Then make it easy for them to book. A clear list of available services, prices, and optional extras on your website or in your booking portal turns every stay into a potential revenue opportunity.
Referral Schemes with Local Businesses
Referral schemes are a smart way to monetise local connections while improving the guest experience. By recommending services, experiences, or attractions, you can earn a commission or referral fee for every booking made through your property.
This could include restaurants, guided tours, adventure activities, spa treatments, or transport. For example, if a guest books a sailing trip, cooking class, or horseback ride on your recommendation, you could receive a percentage of the booking.
It’s a win-win: guests get trusted recommendations, local businesses get more customers, and you generate extra income with minimal effort. Some owners go further, building mutually beneficial relationships where local businesses also promote the property, adding value on both sides.
Set Up a Shop Inside Your Rental
Some holiday rental owners have successfully added an in-house shop, offering either products they make themselves or branded items sourced online.
With a simple wireless payment device, guests can easily purchase these items during their stay. This not only adds an extra special touch to their experience but can also boost brand awareness and encourage repeat or referral bookings.
Examples could include small branded items like string wristbands, locally made crafts, packets of sweets, artisanal candles, or mini bottles of local wine. Even modest products can leave a lasting impression and generate additional income.
Let Guests Take a Piece Home
You can take the idea of an in-house shop a step further with shoppable holiday rentals. Unlike the make-do shop we just mentioned, shoppable rentals let guests purchase the furniture, décor, or products they see during their stay.
If your rental has a distinct style or unique items, this works especially well. Guests can buy items through QR codes, a digital catalog, or a simple sales system you set up.
A platform like Minoan can help you turn your property into a shoppable space, offering access to over 150 premium brands and even earning commissions on sales.
It’s a clever way to generate extra income while giving guests a memorable experience. They leave with more than memories..
Dynamic Pricing
You can’t just set a fixed rate and hope for the best. The holiday rental market is constantly shifting with seasons, local events, and competitor activity. Dynamic pricing tools like Beyond Pricing, PriceLabs, or Wheelhouse take the guesswork out of it.
These platforms analyse market data, local demand, and booking trends to automatically adjust your nightly rates. During peak periods or popular events, your rates go up. When demand is lower, they adjust downward to keep your property competitive.
Properties using dynamic pricing often see revenue increases up to 40% compared with static rates. For example, a 2025 study found a 36% revenue boost per listing.
It’s similar to a stock market for your rental: pricing intelligently ensures you’re maximising income without turning away bookings.
Minimum Stay Strategies
Adjusting your minimum nights based on demand can help you maximise both occupancy and revenue.
For example, you might set a 2-night minimum in the low season to attract weekend getaways, and a 5-night minimum during peak events to lock in longer, more profitable bookings.
Beyond Pricing highlights that requiring longer stays during peak seasons, then reducing minimums closer to check-in, helps fill gaps and boost occupancy. A clear example: hosts see 11.6% longer stays and a +3% increase in RevPAN when using search-powered minimum stay strategies.
For a deeper dive into strategies to boost occupancy, check out our guide on increasing holiday rental occupancy rates.
Maximising Income Through Additional Fees
Charging for extras like early check-in, late check-out, additional guests, or premium amenities can be a simple yet effective way to boost your rental income. These fees not only cover the extra time, resources, and wear-and-tear on your property, but they also give guests the flexibility to tailor their stay.
Think beyond the basics. Consider pet fees, parking charges, luggage storage, or even an exclusive cleaning fee for guests hosting small gatherings. According to Frontdesk, effective upselling strategies like these can increase host revenue by 10 to 30 percent on average.
The key is transparency. Always make sure fees are clearly displayed in your listing to avoid surprises. When handled well, these additional charges can enhance the guest experience while steadily increasing your profits.
Focusing On Direct Bookings
Relying too heavily on online travel agencies can eat into your profits through high commission fees. By building up your direct booking channel, you keep more of each reservation and gain full control over the guest experience from the moment they enquire.
A well-designed direct booking website, paired with a simple and secure payment process, is the foundation. Support this with consistent marketing through social media, email newsletters, and search engine optimisation to attract repeat guests and new enquiries alike.
Holiday rentals with strong direct booking strategies can save up to 25 percent per reservation in commission costs. Over the course of a year, that can mean thousands in extra profit.
Investing in direct bookings is not just about cutting costs. It strengthens guest relationships, builds loyalty, and allows you to tailor offers or packages that you might not be able to promote through third-party platforms.
Discover our guide to advertising your holiday rental online.
Encouraging Repeat Bookings
Returning guests are some of the most valuable for any holiday rental business. Acquiring new customers can cost five times more than retaining current ones.
Returning guests already know your property, trust your service, and are more likely to book directly, reducing reliance on third-party platforms.
Simple repeat booking strategies can make a big difference. Offer loyalty discounts for repeat stays, personalised welcome messages, or small gifts to make returning guests feel appreciated. Follow up after a stay with a thank-you email and an incentive to book again, such as a discount for off-peak dates.
Optimising Your Holiday Rental Insurance
Insurance is not just a legal requirement it can also affect your profits. Reviewing your policy and comparing quotes ensures you are not overpaying while staying fully protected. Look for policies tailored for short term rentals covering accidental damage, liability, and lost income.
Bundling with other property policies or having safety measures like smoke alarms and cameras can lower premiums. To explore different options and see if you can save, check out Compare the Market.
Utility Management
Keeping utility costs under control can have a big impact on your bottom line. Monitor electricity, water, and gas usage and look for ways to reduce waste without affecting the guest experience.
Smart meters, programmable thermostats, and energy efficient appliances can lower bills while keeping your property comfortable.
Encourage guests to be mindful with gentle reminders about turning off lights or heating when not in use. Comparing providers and switching to more competitive rates can also save money over time.
Energy Efficiency and Smart Home Tech
Making your holiday rental energy efficient does more than reduce bills it also attracts guests who prioritise eco friendly stays.
Simple changes like LED lighting, water saving devices, and smart thermostats can reduce energy consumption by up to 15% and lower electricity bills. Installing solar panels can further cut costs and appeal to environmentally conscious travellers.
Smart home technology adds convenience and control. Keyless entry, smart locks, and smart plugs let you monitor energy use and provide a seamless experience for guests.
Energy efficiency combined with smart tech can make your property more appealing while boosting profitability and reducing operational costs.
Utilising Technology and Automation
Technology is a powerful way to streamline operations, reduce errors, and enhance the guest experience in your holiday rental.
Automated systems can handle routine communication, from check in instructions to welcome messages and check out reminders, ensuring nothing is missed.
Booking and channel management software keeps calendars synchronised across platforms, preventing double bookings and maximising occupancy. Smart devices like locks, thermostats, and lighting can adjust automatically based on guest presence, improving convenience while saving energy. Even simple automations, such as maintenance alerts or scheduled cleaning reminders, help your property run smoothly.
Using technology thoughtfully frees up time, reduces operational headaches, and creates a seamless experience for guests, ultimately supporting higher revenue and better occupancy rates.
For a list of recommended automation tools for holiday rentals, see Vacation Rental Automation Tools.
Accommodation for Special Interests and Passions
Catering to guests’ hobbies and passions can make your property stand out and justify higher rates. Think beyond the standard holiday rental experience and tailor your space to specific interests.
For example, you could offer a writer’s retreat with quiet workspaces and inspiring décor, a yoga or wellness-focused stay with mats and meditation corners, or a cycling getaway with secure bike storage and local route guides.
These specialised stays attract niche audiences who are willing to pay a premium for an experience tailored to them. They also provide substantial material for marketing campaigns, as targeting these special interest guests has been shown to generate on average four times more enquiries and bookings compared to generic tourism campaigns.
Highlighting these offerings in your listings can increase bookings and build a loyal following of enthusiasts.
Listing on OTAs
Listing your holiday rental on online travel agencies helps you reach a wider pool of potential guests. A diverse range of OTAs, including both large mainstream platforms and smaller niche sites, can maximise visibility and booking opportunities.
Niche OTAs are particularly valuable for attracting guests with specific needs or interests. For example, platforms that specialise in pet friendly stays, wellness retreats, or adventure holidays connect your property with travellers actively looking for those experiences.
By using a mix of OTAs, you can reduce reliance on any single platform while reaching different types of guests. This strategy can lead to higher occupancy and more consistent bookings throughout the year.
Conclusion
Boosting revenue and profits in your holiday rental is about more than pricing and efficiency. It is about creating memorable, personalised experiences that guests are willing to pay for. Every strategic decision, from curated experiences to eco friendly upgrades, can transform your property into a destination in its own right.
The real power lies in combining these strategies thoughtfully, attracting niche travellers, encouraging repeat bookings, and leveraging technology to work smarter, not harder. When you align operational excellence with guest satisfaction, your rental becomes a sustainable, profitable, and standout choice in a competitive market.
Ultimately, the most successful hosts do not just fill beds, they create experiences guests cannot wait to return to and share.
Curious what you could earn by raising rates and cutting maintenance costs? Use Smooth Rentals’ holiday let income calculator to see your potential earnings.
