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Guide
Pricing Strategy
Smart pricing is the difference between an empty calendar and consistent income. Learn how to maximize revenue without sacrificing occupancy.
Setting your base price
- Research 10-15 comparable listings in your area — similar size, amenities, and location
- Price 10-15% below the average when starting out to attract your first bookings and reviews
- Factor in all your costs: mortgage/rent, utilities, cleaning, supplies, platform fees, and taxes
- Consider your unique selling points — a great view, pool, or premium location justifies higher pricing
- Update your base price quarterly as you gain reviews and understand your market
Seasonal adjustments
- Identify your peak season (summer, ski season, holidays) and increase prices 20-40%
- During shoulder season (transitions between peak and off-peak), price 10-15% above base
- Lower prices 15-25% during off-peak periods to maintain steady bookings
- Research local events (festivals, conventions, sports) and raise prices for those specific dates
- Set holiday premiums (New Year's Eve, July 4th, Christmas) at 30-50% above base price
Weekend & day-of-week pricing
- Weekend nights (Friday-Saturday) typically command 15-30% premiums in urban areas
- Sunday-Thursday nights may benefit from a 10-15% discount to attract business travelers
- Monitor your booking patterns — if weeknights fill easily, you may be underpriced
- Consider a "gap filler" discount for single-night openings between bookings
- Holiday weekends should be priced as peak season regardless of the actual season
Discount strategies
- Weekly discount (7+ nights): Offer 10-15% off to attract longer stays and reduce turnover
- Monthly discount (28+ nights): Offer 25-40% off to attract digital nomads and relocators
- Last-minute discount: Reduce price for unbooked nights within the next 3-7 days
- Early bird discount: Offer 5-10% off for bookings made 60+ days in advance
- New listing promotion: Start with a 20% discount for your first 3-5 bookings
Additional fees
- Cleaning fee: Set this based on your actual cleaning costs — $50-$150 is typical
- Extra guest fee: Charge $10-$25 per additional guest beyond your base occupancy
- Pet fee: If you allow pets, a $25-$75 per-stay fee covers extra cleaning
- Keep total fees transparent — high hidden fees lead to booking abandonment
- Consider bundling cleaning into your nightly rate for shorter stays to look more competitive
Monitoring & optimization
- Track your occupancy rate — aim for 70-80% for optimal revenue
- If occupancy exceeds 85%, your price is likely too low — raise it 5-10%
- If occupancy falls below 60%, reduce your price or offer limited-time discounts
- Compare your revenue per available night (RevPAN) month-over-month
- Review competitor pricing monthly and adjust to stay competitive
Pricing Cheat Sheet
Quick reference for common pricing adjustments relative to your base price.
| Scenario | Adjustment | Note |
|---|---|---|
| New listing launch | -15 to -20% | Attract first reviews |
| Peak season | +20 to +40% | Summer, holidays, events |
| Off-peak season | -15 to -25% | Maintain occupancy |
| Weekend nights | +15 to +30% | Fri-Sat premium |
| Weekly stays (7+) | -10 to -15% | Reduce turnover |
| Monthly stays (28+) | -25 to -40% | Stable income |
| Last-minute (3-7 days) | -10 to -20% | Fill gaps |
| Major local event | +30 to +50% | High demand |