How do we define accommodation prices at Omar do Rio?

When we talk about vacation rentals, one of the most common questions among owners is: how do you set daily rates in a competitive and profitable way? At Omar do Rio, we have a strategic and proven methodology that combines cutting-edge technology, market analysis and our experience accumulated over the years to ensure that each property reaches its maximum profitability potential.

In this article, we'll share with you how our pricing strategy works and what influences rates over time.

1. it all starts with the base price

Each property we manage has what we call a “Base Price”, which is the starting point for all the dynamic adjustments we make. This value is carefully defined based on four main factors:

Typology

Characteristics such as the number of rooms, bathrooms, total guest capacity and differentials (swimming pool, balcony, jacuzzi, among others) are decisive. Every detail counts, from the basic structure to the elements that make the stay more special.

Aesthetics

Well-decorated properties with quality furniture, good lighting and professional photographs have greater appeal for guests. A good presentation has a direct impact on the perception of value and the price we can charge.

Geolocation

Location is one of the most decisive factors. We take into account the proximity of tourist attractions, beaches, shopping centers, transport and even the safety of the neighborhood. In addition, we evaluate the profile of the destination: places geared towards leisure travel are priced differently from those geared towards corporate tourism.

Comp Set Analysis

We carry out detailed monitoring of direct competitors (what we call “Comp Set”). This includes similar properties in the same region and hotels, analyzing prices, occupancy and strategies. This analysis allows us to position each property strategically in the market.

2. After the Property is Active: Dynamic Adjustments and Strategies

Once the listing is live, the work continues. To ensure that the property remains competitive and maximally profitable, we apply a series of dynamic adjustments based on the market, occupancy and guest behavior. Here are the main factors that influence rates:

Prices for last-minute bookings

“The day that's gone by will never come back.” That's why we offer strategic discounts to fill last-minute vacancies, optimizing the calendar and avoiding revenue losses.

Prices for distant bookings

Rates adjusted to encourage early bookings, ensuring predictability for both the owner and our management.

Prices for orphan days

Gaps of a few nights between bookings, known as “orphan days”, receive specific strategies to minimize vacancy. We consider the profile and location of the property to create customized solutions.

Adjustments based on occupancy

Rates are dynamically adjusted according to performance:

When occupancy is low, prices drop to attract more bookings.

When occupancy is high, we increase rates to maximize profitability.

Minimum stay

We make the minimum number of nights flexible depending on how far in advance you book. For periods of high demand, such as public holidays, we require longer stays. For gaps in the calendar, we reduce the minimum to fill vacancies.

Check-in and Check-out

During strategic periods, such as New Year's Eve or Carnival, we restrict check-ins and check-outs to specific dates to encourage longer packages and ensure greater profitability.

Sensitivity to demand factors

We use artificial intelligence to monitor market fluctuations and adjust rates as necessary. We also follow relevant news and trends that could impact the flow of tourists, such as local events, climate change or news in the tourism sector.

Seasonality and personalized seasonal profile

Each region has its own behavior throughout the year. We base our adjustments on historical data, taking into account high and low season periods and events specific to the location.

Weekends vs. weekdays

Demand varies between weekends and weekdays. In leisure destinations, weekends have higher rates. In locations aimed at the corporate public, weekdays are more valued.

Adjacency factor

Once a booking has been confirmed, we adjust rates and minimum stays for upcoming dates, encouraging the filling of orphan days.

Prices based on length of stay

We offer progressive discounts for longer stays, especially in periods of low demand, encouraging longer bookings.

Neighborhood profile

We constantly monitor the rates and occupancies of competing properties in the area, ensuring that your accommodation is always competitive.

3. Our Key Metric: Annual Profitability

Our goal is to maximize RevPAR (Revenue per Available Room), a metric that combines the occupancy rate with the average daily rate. RevPAR reflects the overall performance of the accommodation, ensuring that the property is generating revenue consistently throughout the year.

Occupancy rate: In the beginning, it can be high to attract engagement and generate reviews.

Average daily rate: Adjusted over time as the property gains positioning.

Total profit: Optimized RevPAR translates directly into accumulated annual profitability, which is the true indicator of success.

Why is this important to you?

Our methodology ensures that every pricing decision is aligned with the goal of maximizing your property's results. At Omar do Rio, we work to ensure that your accommodation achieves the perfect balance between competitiveness and profitability, delivering the best possible performance throughout the year.

If you'd like to learn more about our management, we're always happy to talk!

Let's work together to turn your accommodation into a benchmark in the vacation rental market!