Most of you will know the relationship between supply and demand and ‘charging what the market will bear’. Whilst this wasn’t much of a problem with most products and services, it becomes terribly risky with products or services that are unique or where supply is limited. Holiday accommodation costs are directly proportionate to supply and demand.

There are many properties on the market for $10,000+ per week (ridiculous prices) during peak periods. Likewise it is possible to rent a nice house for $300 - 500 per week during the quieter periods. Despite the vast number of accommodation options, vacancy rates during the peak periods can often be nil. That’s right - fully booked.

Accommodation pricing is roughly based on which season the booking is in:

• Peak or high
• Shoulder
• Low

Bear in mind the dates of these periods can and do vary from one accommodation provider to another so its always wise to check.

Lets have a look at when demand and therefore prices are the highest.

Peak season

School holidays 
Public holidays and long weekends
The warmer the weather the higher the demand
If you are booking during peak period, be prepared for the higher cost. No you don’t get anything extra and yes it will often seem cheaper to fly overseas. If you have to book during this period book well ahead of time to ensure you have a good selection of properties. If you are planning to return to the same accommodation the following year, book it in advance. Whichever way you look at it, you will be paying premium rates for the busiest time of the year. Level of price negotiation - limited to Nil.

Shoulder

This is the period leading up to and immediately following the peak period. Generally this is a great time to travel and you get all the benefits of the warmer climate with the high accommodation cost of peak periods. We prefer to travel in shoulder season because it offers much better value for money and we also get a chance to experience many destinations without the crowds. 

Low

This is the balance of the year where demand is lower. Yes it may be winter, although temperatures are still around the high teens and the water temperature is warmer than what the southern states experience.  Level of price negotiation - fair to good.

Your accomodation search will normally entail three or more phone calls regarding a particular property. Ask for the same person each time and build a relationship with them. In the early discussions, only give a rough idea of what you are budgetting for.

1. Check out the rates on the website for all periods in the year
2. Set yourself a budget and stick to it
3. Compare the rates of other properties to identify relative value for money
4. Spend time talking to the accomodation provider - get answers for your checklist/questions
5. Talk about pricing last (remember they want a quick easy transaction, as they will have numerous other people also looking for accomodation)
6. Ask for their best weekly rate for the period you are interested in
7. Show interest and project the fact you are genuinely interested and not a ‘time waster’
8. Ask for the rate of the next lowest season and start negotiating from there
9. Once you cannot move any further with the price, request that they speak to the owner and check to see if a lower rate is available. Tell them if the rate is acceptable, that you are happy to provide a deposit right there and then (by make sure you are absolutely ready to do this)
10. Most accommodation providers are happy to check with the owner - you may just get a great deal.
11. Do the deal, but do not pay any money until all your questions have been answered to your satisfaction.

If you are unable or not ready to do the transaction, ask for a tentative booking or to simply ‘hold to booking’. If they hold the booking and dont get back to you quickly, this gives you an indication of the demand for the property and how much negotiation power you have. Tentative bookings can range from one day to several weeks depending on the season.

Remember you may only have one opportunity to negotiate the price, avoid renegotiating after the property has been held for you as you wont appear serious and credible.

Last Minute Specials

If you are flexible with your dates, always ask if there are any last minutes specials. these can occur through cancellations or ‘no-shows’. The more the last minute, the better your chances of getting a better rate. Remember your advantage - you can either take it or leave it and from their side it will be vacant or not, so negotiate hard. If you get the price you’re after book it (but remember to ask all those questions you have in the back of your mind).

- Special thanks to Bill Soo for this article.