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How to Maximize Rental Incomes Over the Summer in Dubai?


Staff member
Feb 16, 2024
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We all know that Dubai’s summer months can be a bit of a double-edged sword for vacation rental hosts. On the one hand, you’ve got the scorching heat; on the other, low occupancy rates can dent your RevPar (Revenue Per Available Room). But fear not! With the right strategies and tools at your disposal, you can turn those challenging summer months into a golden opportunity to boost your earnings and maximize rental incomes over the summer in Dubai.

In this blog, we’re diving deep into the booking trends that shape Dubai’s summer rental market. We’ll uncover how you can navigate through low occupancy like a pro. And here’s the cherry on top: we’ll introduce you to a game-changer – PriceLabs. This powerful tool is your secret weapon for maximizing revenue even when the temperatures are soaring.

Understanding Booking Trends in Dubai During Summers​

In Dubai, summer starts around May and continues till October. The United Arab Emirates as a whole experienced low Occupancy and RevPar during these months. You can see it in the graph below, taken from PriceLabs’ World STR Index showcasing occupancy rates, RevPAR, and available listings in the UAE from the year 2020 to 2024.

maximize rental incomes over the summer in Dubai.

World STR Index

Decline in Occupancy in Dubai during Summers​

Using PriceLabs Market Dashboard, we crafted custom compsets to capture the nuances of the Dubai vacation rental market. Analysis of the data for 2023 revealed a discernible pattern in occupancy rates, particularly noticeable from April onwards. The occupancy rate declined gradually during this period, signaling a seasonal shift in demand dynamics.

  • By the peak summer month of June, occupancy had dropped to its lowest point at 38%, indicating the challenges of Dubai’s sweltering summer climate.
  • Throughout the summer months, occupancy remained relatively stagnant within the range of 38% to 43%, reflecting the sustained impact of seasonal factors on booking the activity.
  • However, as the summer season waned and transitioned into October, there was a notable uptick in occupancy, suggesting a resurgence in traveler interest and a return to more favorable conditions for vacation rental hosts in Dubai.

This analysis underscores the importance of leveraging data-driven insights to navigate market fluctuations and optimize revenue strategies effectively throughout the year.

Average Occupancy in Dubai

Average Occupancy in Dubai

Reservation Trends in Summers​

The data also shed light on the booking patterns in Dubai. Notably, a significant portion of occupancy stemmed from longer-term bookings.

  • Over the season, 35% of bookings lasted 29 days or more, indicating a notable preference for extended stays among visitors.
  • Following closely behind, 23% of bookings fell within the 7-14 day range, suggesting a moderate demand for mid-length stays.
  • Similarly, 14-28-day bookings accounted for 18% of occupancy, reflecting a substantial segment of guests seeking slightly longer durations.
  • Interestingly, shorter stays lasting less than 7 days contributed to only 24% of the overall occupancy, signifying a lesser reliance on short-term bookings during summer.

These insights into booking durations provide valuable guidance for rental hosts in Dubai, enabling them to tailor their strategies to accommodate the prevalent preferences and capitalize on the prevailing trends effectively.

Length of Stay by Stay Date

Length of Stay by Stay Date

Increased Median Length of Stay in Dubai​

Starting in April, there was a noticeable uptick in the median length of stay (LOS) among guests in Dubai.

  • During this month, the median LOS stood at 13 days, marking the beginning of a gradual increase.
  • This trend continued to escalate, reaching its peak at 17 days in July, indicating a significant preference for longer stays during the peak summer months.
  • However, as the summer season waned and transitioned into October, the median LOS began to decline, dropping back down to 10 days.

This fluctuation in the median LOS over the course of the summer reflects the evolving patterns in visitor behavior. It highlights the importance of rental hosts adapting their strategies accordingly to maximize their occupancy and revenue throughout the year.

Median Length of Stay

Median Length of Stay

Booking Window during Summer Months in Dubai​

  • In April, the booking window, representing the number of days before a booking was made, was 7 days.
  • Subsequently, this timeframe decreased, reaching its lowest point at 3 days in July, August, and September. A shorter booking window implies that guests are making their reservations closer to their intended arrival dates, possibly indicating a trend towards more spontaneous travel or a heightened sense of urgency among travelers during these months.
  • However, as October approached, the booking window expanded again to 5 days, suggesting a slight shift in booking behavior.
  • By November, the booking window had further extended to 8 days. This increase implies that guests are planning their trips further in advance, potentially influenced by factors such as seasonal changes, upcoming holidays, or other external events.

Overall, monitoring changes in the booking window can provide valuable insights into shifts in traveler behavior and help rental hosts tailor their marketing and pricing strategies accordingly to maximize occupancy and revenue.

Median Booking Window

Median Booking Window

How Can PriceLabs Help You Maximize Rental Incomes Over the Summer in Dubai?​

Maximizing rental incomes during the summer months in Dubai can present unique challenges. Still, with PriceLabs, you have a powerful tool at your disposal to optimize your pricing strategy and attract more guests. Here’s how PriceLabs can help:

Seasonal Pricing Profile​

PriceLabs offers a “Pricing Profile” feature tailored for seasonal markets like Dubai. This allows you to create custom configurations of pricing customizations. You can create a pricing profile for the summer months in Dubai to optimize your revenue. Once you create a pricing profile, make sure to:

  1. Remove far-out premiums on bookings to accommodate last-minute bookings.
  2. Set lower seasonal minimum prices to attract more guests during slower periods.
Seasonal Pricing Profile

Seasonal Pricing Profile

Attract Longer Bookings​

Encourage longer stays by adding amenities and offering discounts for extended reservations. PriceLabs can help you identify market insights through its Market Dashboard, allowing you to adjust your offerings to cater to guest preferences. You can set weekly and monthly discounts using PriceLabs to attract longer bookings.

According to the PriceLabs Market Dashboard created for Dubai, guests prefer room darkening shades, extra pillows and blankets, and cribs for their babies, suggesting families book the rental and rentals that allow long-term stays. You can provide the desired amenities in your vacation rental and increase the chances of getting booked.

maximize rental incomes over the summer in Dubai

Amenities graph in PriceLabs Market Dashboard

Dynamic Pricing​

Utilize dynamic pricing to stay competitive in the market. PriceLabs’ Dynamic Pricing Tool offers a strategic solution to increase revenue during the summer months in Dubai by continuously analyzing market trends, demand fluctuations, and competitive pricing data.

By fine-tuning pricing strategies based on factors such as booking window trends, length of stay preferences, and desirable amenities, PriceLabs ensures that rental properties remain competitive in the market, attracting more guests and generating higher revenues during the summer season in Dubai.

PriceLabs Dynamic Pricing Tool

PriceLabs Dynamic Pricing Tool

Minimum Stay Restrictions​

When reviewing minimum stay restrictions for rental properties, it’s essential to strike a balance that effectively accommodates longer-term guests and last-minute bookings. It is the prevalent trend in Dubai during summers, as shown in the graph above.

One strategy is maintaining minimum stay requirements for reservations longer than 7 days, ensuring that the property attracts guests seeking extended stays. However, it’s also prudent to adjust orphan and adjacent day restrictions to accommodate shorter bookings in between, allowing for flexibility in the booking calendar.

Customizing minimum stay restrictions for last-minute bookings can further optimize occupancy rates. By allowing minimum stay restrictions to drop to 2 days for bookings made at the eleventh hour, properties can capitalize on short-stay opportunities and maximize revenue potential, especially during low-demand periods such as the summer months in Dubai. This approach ensures that rental properties remain competitive and adaptable to varying guest preferences and booking patterns throughout the year.

Minimum Stay Restrictions Customizations

Minimum Stay Restrictions Customizations

Optimize Listing Titles and Descriptions​

Enhance your listing titles and descriptions to highlight especially attractive features during the summer months and appeal to guests seeking long-term stays. Utilize insights from the Market Dashboard to understand guest preferences and highlight those features in the description and listing title. It will help you put your property in the forefront when booking.

You can use PriceLabs Airbnb Description Generator to write an appealing title and listing description.


Occupancy-Based Adjustments​

Occupancy-Based adjustment is a powerful customization feature offered by our system. It enables dynamic rate adjustments based on the horizontal occupancy of your listing. This innovative approach goes beyond traditional market analyses, incorporating your property’s performance to tailor pricing recommendations effectively. It is a great tool to maximize rental income over the summer in Dubai.

By evaluating occupancy levels, Occupancy-Based Adjustment ensures that your property’s specific demand dynamics apply discounts or premiums. For your vacation rentals in Dubai, you can adjust to an aggressive profile, resulting in higher discounts during periods of low occupancy and optimizing pricing to attract more guests.

Conversely, when occupancy levels are favorable, the system automatically reduces discounting, maintaining competitiveness while maximizing revenue potential. This intelligent mechanism provides a safe and strategic way to adjust pricing, enhancing your property’s profitability while staying responsive to market fluctuations and guest demand.

Occupancy Based Adjustment

Occupancy Based Adjustment

Key Takeaways​

  • Dubai’s summer months pose challenges for vacation rental hosts due to high temperatures and low occupancy rates, impacting revenue.
  • PriceLabs’ advanced data analytics and pricing tools offer solutions to maximize rental incomes over the summer in Dubai.
  • Understanding booking trends, such as declining occupancy and shorter booking windows, is crucial for effective pricing strategies.
  • PriceLabs’ dynamic pricing adjusts rates based on market conditions and property performance, optimizing revenue potential.
  • Customizing minimum stay restrictions and adjusting pricing profiles for seasonal demand can attract more guests and increase bookings.
  • Enhancing listing titles and descriptions with summer-specific features and amenities can improve visibility and attract long-term stays.
  • Occupancy-Based Adjustment provides a dynamic pricing strategy tailored to property demand, ensuring competitive rates and maximizing revenue.

About PriceLabs​

PriceLabs is a revenue management solution for the short-term rental and hospitality industry, founded in 2014 and headquartered in Chicago, IL. Our platform helps individual hosts and hospitality professionals optimize their pricing and revenue management, adapting to changing market trends and occupancy levels.

With dynamic pricing, automation rules, and customizations, we manage pricing and minimum-stay restrictions for any portfolio size, with prices automatically uploaded to preferred channels such as Airbnb, Vrbo, and 100+ property management and channel integrations.

Every day, we price over 300,000+ listings globally across 135+ countries, offering world-class tools like the Base Price Help and Minimum Stay Recommendation Engine. Choose PriceLabs to increase revenue and streamline pricing and revenue management. Sign up for a free trial at pricelabs.co today.

The post How to Maximize Rental Incomes Over the Summer in Dubai? appeared first on PriceLabs .
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