In the often over-supply of short-term rentals (STR’s), Breckenridge Colorado stands out for its Rocky Mountain landscapes, abundant recreational opportunities but also for its dynamic rental market. With high demand in both the winter and summer, with a laid-back vibe there is ample rental traffic to warrant the elevation of your rental.
Whether it’s the adrenaline-pumping ski slopes with the highest lift in North America (best December – April) or the insanely beautiful and abundant natural hiking trails in the summer (typically late June – early October), Breck'(enridge) attracts a diverse range of visitors. The Breckenridge Tourism Office reported a 71.4% lodging occupancy rate from December 22 – January 7 of 2023, which comparing to the national average of 63.7% shows demand is up as 2022 it was 67%.
But who are these high-end clients willing to pay a premium for an exceptional STR experience? Understanding this demographic is crucial for customizing your offerings and maximizing profitability. The Breckenridge Tourism Office notes the usual top areas, such as Texas, Florida, Illinois & California. Secondly noting high numbers from nearby states such as Kansas and Missouri.
That’s where this post comes in! I’ve researched the market to bring you the current information to target your ideal clients. If you’re looking for inspiration or to try out something new to attract these clients, then this post is for you!
Identifying High-End Clients
If you have a rental management company, be sure to request your unit’s year over year performance summary. Or if you manage it yourself, be sure to calculate your average daily rate (ADR) (Gross rent/# of night rented), occupancy rate (# of nights booked/# of nights available) and your Rent Per Available Night (PAN), (Gross Rent/Nights Available) in comparison to year-over -year (YoY) data. Check your data points, do revenue and amenity comparison with competing units.
1. Analyze Seasonal Trends and Preferences
Winter Appeals: Breckenridge’s unique seasonal attractions cater to different visitor profiles. Winter attracts ski and snowboard enthusiasts who are paying $241 a day for a weekend day lift ticket or $193 a day for a weekday lift ticket in 2024. Often families or corporate groups looking for luxurious lodgings as close to the lifts as they can afford. Winter vacation rental occupancy is outpacing last year, up 7% year over year, in Summit County according to Key Data. Enthusiasts demographically are 60% male, 71% skiers, 88% white, median age continues to climb to 38 in the Rocky Mountains. 27.5% are 17 & under, and 60% of the beginner skiers are female.
Summer Appeals: Summer draws nature lovers and outdoor adventurers interested in premium accommodations that offer comfort after a day of hiking, wildflowers galore, fly fishing, mountain biking or just getting away from the heat. A high-alpine climate, Breckenridge remains 20 degrees cooler on average than the Denver area. The summer in Breckenridge brings plenty of sunshine, breathtaking bluebird skies and beautiful scenery. Typically described as warm (70), dry days with cool evenings (50) with little to no humidity. Airconditioning is therefore and uncommon amenity to provide as opening windows each night is free. Overall, the Summit Daily Newspaper reported Breckenridge as having 1.5 million visitors this past summer season as well.
Event-Based Appeal: Consider special events such as the Breckenridge Film Festival or the ever-popular Ullr Fest and my favorite the International Snow Sculpture Championships, which attract culturally inclined visitors likely to appreciate higher-end accommodations. I highly recommend tracking these even if you have a management company on GoBreck.com!
2. Utilize Local and Industry Data
- Breckenridge Tourism Office Insights: The Breckenridge Tourism Office provides valuable data on visitor demographics and trends. For instance, understanding that visitors commonly come from regions like Texas, Florida, Illinois, and California can help tailor your marketing strategies. Follow their Blog! See the results from one of the latest studies showing the value of STR’s. Notably STR’s generated 1.7B in visitor spending, $607 is the average spend per stay, & STR’s offer accommodations options that cater to different budgets, group sizes & travel styles.
“A 10-year road map to accomplish a shared vision for a more balanced long-term future. ” BTO
- Rental Performance Data: Insights from platforms such as Key Data or free online tools like AirDNA, which tracks rental performance metrics in Summit County, reveal that while overall occupancy rates might fluctuate & have reduced from 4.4 nights average stay to 4.3 nights, there is a steady demand for high-quality rentals. The data indicates significant booking increases during peak seasons like Thanksgiving, Christmas, New Year’s, and Spring Break with 2023 numbers beating out 2022’s by 4%. While short-term rental bookings have declined slightly across the U.S. so far in 2023, Summit County continues to outperform the nation overall, according to Melanie Brown, the executive director of data insights at Key Data.
True ski-in / ski-out properties typically are noted by not having to take a shuttle or car to get to the slopes, as the slope should be right in front of you. The closer the residence is to being directly on the ski-slope the higher dollar to purchase and / or to rent it. Breckenridge ski-in/ ski-outs sell at a high price; I track all the market action with Altos Research Market Reports.
3. Leverage Technology for Targeted Marketing
- Advanced Booking Trends: According to the Summit Daily article from November of 2023, there has been a switch back to more spontaneous behaviors with bookings. With visitors booking closer to their arrival dates by 8 days, thus using dynamic pricing models can help maximize revenue. Tailoring your rates and promotions around these shorter decision windows can attract high-end clients making last-minute plans.
- Online Presence and Reviews: High-end clients often research extensively before booking. A strong online presence with high-quality images, detailed descriptions of your property’s luxury amenities, and positive reviews on platforms like TripAdvisor, AirBnB, and VRBO can significantly influence their choice.
Summit County currently has restrictions on vacation rental properties and therefore monitors online activities and requires licenses to be placed in all 4500 legal units advertising.
Crafting the Ultimate High-End Experience
1. Emphasize Unique Selling Points
- Premium Amenities: Highlight exclusive features such as Smart Home Technology: (1) Keyless Entry on front doors & (2) garages with Schlage Locks and MyQ, (3) a Moen U shower to control water temperature, turn on with phone or Alexa, (4) Nest thermostats that ensure comfort and convenience, (5) online guestbooks & surveys delivered thru frames, digital frames and /or an Alexa.
- Local Authenticity: Incorporate elements of local culture and art. Offer guides to hidden gems and exclusive experiences that resonate with culturally savvy travelers. Like Information on blockbusters that have been filmed in Breckenridge, like Dumb and Dumber and Christmas Vacation. Directions to SouthPark the homes of series and a local Art Legend that creates Giant Trolls.
If you like my emphasis, give this one a shot!
2. Focus on Personalization and Sustainability
- Customized Experiences: Offer personalized services, such as private chefs, grocery store runs or customized outdoor adventure tours, which are particularly appealing to high-end clients. Provide personalized games like Puzzles with local scenes, custom Spotify playlists, personalized home information in books, Alexa and digital frames, custom trivia for Breck in Alexa, etc.
- Eco-friendly Practices: Promote sustainability through eco-friendly operations, which are increasingly important to today’s travelers. Highlight your property’s energy-efficient features and your commitment to preserving the natural beauty of Breckenridge. Like energy-efficient lighting, low-flow water fixtures, encouraging recycling, providing re-useable shopping bags, promoting sustainability by noting transit passes, or bus schedules.
5. Build Strong Local Partnerships
- Collaborations with High-End Businesses: Establish partnerships with local high-end restaurants, boutiques, and private event organizers to offer exclusive deals and packages.
Things To Consider
Breckenridge’s STR market offers tremendous potential to tap into a high-end clientele looking for an unforgettable experience.
By leveraging detailed market insights, emphasizing unique amenities, and focusing on personalized and sustainable tourism, you can attract discerning travelers willing to pay a premium.
Remember, in the competitive landscape of STRs, understanding your client is of the utmost importance. You must provide quality guest experiences to sustain profitability, enhancing guest experiences should not be left up to chance.
Hopefully I’ve given you one or two new ideas to try out inside this post. And if so, let me know how – I’d love to hear back from you! Perhaps you could use a dose of fresh inspiration to try something new.