In the hospitality world rates vary with seasonality and occupancy rates.
Hotels and vacation rental owners usually take into account client’s demand to establish their rates, the busiest the season the higher the price. This way of establishing rates is known as revenue management or yield revenue management. Most hotels are actively using yield revenue management practices changing their rates up to every week to optimize revenues.
Owners of vacation homes in the Bahamas are rarely that sophisticated; some establish the same rate for the whole year, others establish a low medium and a high season rate while others engage in a dynamic pricing strategy like hotels. It is not uncommon for dynamic owners to have up to 12 different rates throughout the year and for them to modify them once a month. The same house could be rented at $ 4 000 a night during low season to $ 20 000 during high season. The house is the same, the service is the same, smart bargain hunters are specialists to secure great properties at a discounted rate.
