As a vacation rental host, your goal is to maximize your earnings. A common misconception is that higher occupancy equals higher revenue. In reality, lowering your prices to achieve full occupancy often leaves money on the table, while increasing the wear and tear on your property.
The key metric to focus on is Revenue per Available Room (RevPAR or RevPAN for "Night"). This is calculated by dividing your total revenue by the number of nights your property was available, which is typically measured monthly. Unlike occupancy, RevPAR accounts for availability fluctuations, taking into account owner stays or maintenance downtime, and ensures you're not sacrificing profitability for the sake of fully booked nights.
To optimize RevPAR, you need to strike the right balance between occupancy and nightly rates. While manual pricing adjustments are an option, they can be time-consuming, inefficient, and difficult to calculate. Airbnb’s Smart Pricing is another alternative, but it primarily serves Airbnb’s interests—encouraging lower prices to increase bookings and market share, often at the expense of your revenue.
A more effective solution is using a dynamic pricing software. These tools leverage hundreds of data points to adjust your rates dynamically, factoring in:
- Seasonality
- Local events
- Competitor pricing
- Last-minute bookings
- Day-of-the-week trends
- Orphan nights
- Etc.
We integrate with the popular dynamic pricing software providers, ensuring that your rates are automatically updated across all your booking channels. These tools estimate the optimal price, while our tool applies the correct markup for each platform.
Explore our dynamic pricing software and our integrated partners below and find the best fit for your rental business.
