The festive season in Lagos is not just a busier version of the rest of the year. December is full of returning Nigerians, international visitors, weddings, concerts, end-of-year parties and corporate events. Demand is concentrated in a few weeks, traffic, power costs, cleaning and security expenses increase. For short-let operators the prize is huge, but only if they are disciplined on price.
The main mistake is seeing December as a long peak. Demand builds slowly, peaks at major events and falls off after the new year. A single festive tariff leaves money on the table on the strongest nights and can make a property uncompetitive during the shoulder periods.
A better approach starts with three numbers: occupancy, average daily rate and revenue per available night. The last measure is the most important. A flat rate of ₦150,000 at 50% occupancy generates less revenue than a well-managed ₦220,000 rate at 75% occupancy. But an exorbitant price will drive guests to alternatives.
Operators should set a baseline based on their own booking history, then look at comparable listings based on neighborhood, bedrooms, amenities and cancelation policies. Lekki, Victoria Island, Ikoyi and Ikeja should not be priced the same. Proximity to beaches, business districts, airports, event venues and reliable infrastructure is a major factor affecting willingness to pay. You should do price comparisons at least weekly during October and November and daily during the busiest weeks.
A working calendar may have 3 bands:
– Shoulder season: Early December and first week of January, moderate increases.
– High season: Christmas to New Year with increased rates and minimum stays.
– Event nights: concerts, festivals and major conferences, priced separately where demand is verified as justifying.
Minimum stays can help reduce cleaning and vacancy costs, but shouldn’t be applied blindly. This might also prevent a lucrative two-night booking when demand is low. A four-night rule can protect a high-demand weekend. Cut the price and loosen restrictions as the date gets close. A last minute two-night booking is often better than an empty calendar.
Dynamic pricing must also respond to the realities of Lagos operations. Linen, fuel, maintenance and staffing costs are affected by inflation and currency volatility in Nigeria. The rates should therefore be reviewed in Naira and with clear terms for deposits, refunds, power usage and extra guests. If the international platforms display conversions in foreign currency, the host still needs to state the actual amount of the settlement unambiguously.
Transparency is essential. Sudden, unexplained increases invite poor reviews and reputational damage. Hosts should avoid using emergencies, outages or artificial scarcity to justify extreme pricing. They should also confirm applicable Lagos State requirements, taxes, building permissions, safety standards and platform rules before accepting festive bookings.