Hello and welcome to today's live. Today we are going to talk about how to determine your prices and your optimization strategy for the very next period, that of Christmas and the New Year. It is true that we still had quite a few adventures. Unfortunately recently between government announcements, re-containment; the fact that finally on the 15th, we will perhaps deconfine and I mean perhaps, because we are all a little in suspense and waiting for the result, for what the government will tell us.
So on this, we are all a little doubtful and the question we are asking ourselves, rightly, is what are we doing about our prices? Above all, how do we position ourselves? Do we say to ourselves that we must set high prices, do we say to ourselves that no, on the contrary, we must set low prices. Are we more optimistic or pessimistic? This is today's topic, so if you are also asking yourself these questions, stay with me. We're going to give you answers and I'm going to give you some ideas on what you can look at and do to have the best possible strategy.
So don't hesitate to say hello when you arrive, it's always a pleasure to see you or see you again Live. As you know, I do Live every day, from Sunday to Thursday. You can find the videos on YouTube, on I display Complete and I can read your comments which are posted from the YouTube channel and also from the I display Complete page. I read all your questions and answer them at the end of the Live or afterwards; so don't hesitate, don't hesitate to ask your questions afterwards.
So I asked the question on the J'poster Complet Facebook group which is called seasonal rental, prices and maximization of turnover. Besides, don’t hesitate to join him; if you register, you will receive the free bonus that we make with the seven mistakes not to make when making your prices. So really, don’t hesitate to join us. I asked the question to the community, so there were a lot more people who indicated being optimistic for this Christmas and New Year period and there was one person who said they were pessimistic for both and beyond a bit of everything, but overall everyone is relatively optimistic for these two periods. Tell me what you think about it, you who are with me on Live right away, tell me what you think about this Christmas period and the New Year. Are you optimistic?
There, the difficulty we encounter is that we are a little in suspense and waiting in relation to this December 15th. Are we actually going to be allowed to celebrate together? Overall, we obviously asked ourselves this question at J'poster Complet the day after the speech. We said to each other, war council! What do we do? What are we doing about our strategies? What do we do about our prices with the elements we have at our disposal now? What do we decide? Should we raise or lower prices? Are we optimistic, are we pessimistic?
There you go, so I'm going to give you some marbles. The first and most important thing to say is that in fact this debate only concerns you if usually the Christmas period and the New Year is an important period; that if in your seasonality, the end of year holidays are the opportunity to have real growth in turnover. If it's a fairly low or average time for you in your city or on your property, then all this debate doesn't really need to be made. Because there's no, I think, but no I don't particularly think of any reasons why you might typically have very little demand during the holidays and then all of a sudden a huge growth in demand. There could be one or a little additional boost but I don't think it's a double or double thing.
So if usually it is an important period of the season, and you therefore have either a strong demand, or very strong demand during the periods, during the end-of-year celebrations, at that time we talk about you and we talk about this situation to help you. So the first thing to do, to correctly answer this question of what strategy I should approach for Christmas and the New Year, the first thing to do, will be to go and look at the market. I talk about it often, it's true but it's one of the essentials. And we follow it on a daily basis, going in particular to airdna, on the part obviously it's the paying part.
Sometimes people say to me: but is it on the first page? No, because it's true that this first page is really extremely succinct. It's more the paid part, particularly in the tabs, you have a tab called pacing and in fact, on this tab you see filling estimates for the future and that is really extremely valuable. This is what we are looking at to allow you to currently see where the ads are being rented? What travelers are currently booking and we can obviously see it city by city, by type of property. So, by looking at this, we already have an idea of where things are going at the moment, where travelers who need to book are booking.
So the first point is that we don't have phenomenal trends either, it's not that. I won't hide from you that the question arose, we said to ourselves, the day after the president's speech, we are going to suddenly have an absolutely colossal jump in reservations, we are going to be completely flooded with requests and It's going to be massive. That's not what happened and I think for an excellent reason: because people are rightly waiting for December 15th. No one wants to repeat what we experienced in the spring. Everyone had booked their vacation and in fact there were lots of cancellation problems due to the lockdowns.
So people became extremely cautious. We still saw an increase in reservations the day after the speech, but it was not a sort of gold rush as we might have expected. So, in this situation, we don't have phenomenal movements but we do have movements. And to give you an idea of why it's interesting to look at your city on airdna, I've pulled out information on three different cities to show you that in fact, there is no absolute truth. It would be really stupid to say to yourself: “That’s it, for sure, the new one is going to be a hit. Double all your prices in half, because the French are fed up and will want to celebrate the New Year and rent Airbnbs. It would be stupid to tell you that, I'll give you the immediate illustration.
I looked at Marseille for example: in Marseille, we have a buzz about Christmas and the New Year to this day. I looked at Nantes: in Nantes, we don't have any more excitement than that, neither for Christmas nor for the New Year. That is to say that Nantes, as it is a very business city, currently, we have a few reservations and it remains relatively similar until the end of the month. There is not really an increase in bookings over Christmas and New Years. On burgundy, on the contrary, it is a third and even different scenario. And frankly, I didn't even choose them for that. I said to myself: come on, which city am I going to take? Marseille, Nantes, Bordeaux; three different scenarios. And in Bordeaux, we have a thrill over Christmas and we don't yet have a thrill over the New Year. You see, this shows how important it is to look at what is currently happening in your city precisely so that you can have the finest and most accurate information about there and what the Travelers are booking for this holiday season.
So as I said, point number one, follow the market and see when it moves where it moves. Point number two is don't act too quickly. So here, I am referring to what I just said. I killed the suspense a little but don't act too quickly. For what ? Because there we could say to ourselves that we will suddenly have reservations which will arrive little by little. It is very likely that for the moment, it remains relatively not platonic but moderate. We are going to say until this famous date of December 15 when the government is going to give everyone a great deal to be able to celebrate the end of year celebrations safely and definitively together with our loved ones and certainly with a certain number of people. rules to respect.
But as a result, as I said earlier, the French have become extremely vigilant and we will probably have... so no one has a crystal ball, but we can envisage this scenario in a rather realistic way, probably the same effect as this summer; that is to say that this summer after confinement, everyone was fed up with being confined. It took a little while to come but ultimately it was an explosive summer, which was really, really good.
So it's a scenario that could happen again, obviously it's conditional because as I tell you I have neither a crystal ball nor my entry into government unfortunately. But it could be the same kind of scenario, which means that for us as seasonal rental companies, we will have an extremely important challenge to keep a little bit of a cool head. It's not easy but it's part of our job to say to ourselves, I have different cards in hand which let me understand that I can calmly keep a cool head and by keep a cool head I mean not Don't panic about a potential lack of reservations by cutting prices.
In any case, we at J'poster Complet, it's not at all politics that we're talking about. Currently, we are really maintaining a pricing strategy which is more of a non-COVID nature to help you if you really need expert feedback on that, this is the strategy that we tries to say that for the moment perhaps given the trends, next week or the one after that we will change strategy. I don't know yet but to date we are approaching the same strategy for the end-of-year holidays as what we could expect outside of COVID and on that the last point to also have in mind and which will be a important vector of optimization is that we must not only think about the price.
On the price, it is possible that to date you will have reduction percentages applied to a longer duration of stay; if you have done this for example, do not potentially forget to withdraw it during this period. If you are sure that you are going to really have demand over Christmas and New Years, you could take a reservation for a week and actually see the price deteriorate due to this coefficient which has been placed over a long period. There is another point: a system with cancellation conditions. There, the French, as I told you, are careful so they will be more able to reserve properties with ads that have more flexible cancellation conditions, namely Airbnb at the moment, I don't know if you have received the e-mail, we saw it go by. Some of our Airbnb customers are campaigning for a drastic reduction in cancellation conditions for Christmas and New Years.
We had, in the situation encountered, we had goods which were under moderate cancellation conditions; so as a reminder moderate cancellation conditions it is a cancellation within five days and in fact on these cancellation conditions, Airbnb came to tell us that for them it was a good idea to go flexible. So on that note, Airbnb has every interest in the cancellation conditions being as flexible as possible because for them, it is more favorable then for us, in my opinion, it is not necessarily as clear as this. be favorable. For what ? Because the five-day cancellation condition is already very realistic compared to this date of December 15. From December 15, we will still have a certain number of days almost a week until Christmas to be able to decide.
So that gives people time to decide after having confirmation from the government that we will be able to travel. And then, what Airbnb said in its email which in my opinion somewhat undermined the credibility of their request, they said that they have 75% of reservations which are made under strict and moderate cancellation conditions; which means that in fact the moderate cancellation condition is entirely relevant from a business point of view and is not an error. There you have it, perhaps be vigilant on this point, Airbnb is campaigning a lot on this.
It is true and I agree with them 1000%, it is true that we cannot afford, even less at this period, to have strict cancellation conditions because at fourteen days it is more realistic that and It's actually scary to travel so that's out of the question and on that I agree with them 1000%. After moderate versus flexible cancellation conditions, moderate still seems relevant to me. So here is the answer on this point of what to do and how to manage your strategy during this Christmas and New Year period.
So I'll recap the points. The first: remember to follow the market, particularly with the help of airdna, to see what is happening. The third point is not to act too quickly, more than ever we will have to make sure we have a cool head during these periods. And the third thing is don't just think about the price. Also be vigilant about the promotions that you have in progress during this period to ensure that you are not going to have prices that will fall, we say fall at a price that is too low, reservations that will be made at a price that is too low. and also be sure of your cancellation conditions to ensure that they are sufficiently flexible but not too flexible so as to still protect you during this period which will be in demand.
Here again, don't hesitate to ask me your questions in the comments if you have ideas for videos and topics that you would like me to cover in the next videos per day, I also invite you to write down all these topics. in comments either on Facebook or on YouTube. I would be delighted to read all that, I would be delighted to respond to you as well. I'm providing the link so you can sign up for the private Facebook group and receive your free bonus. I would be happy to see you tomorrow for the next video. Here, take care of yourself and see you soon!
With the government's recent announcements, it's not easy to navigate and know how to position your prices for Christmas and New Years, should your cancellation conditions be changed? we talk about it.
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