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Summary
This article discusses revenue management strategies for STRs, emphasizing the importance of scheduled routines, analyzing booking behavior, and understanding the nuances of different markets. Hosts should focus on daily and weekly pricing reviews, considering factors like booking windows and last-minute adjustments to maximize revenue. The article highlights that STR pricing is harder than hotel pricing, requiring careful consideration of product uniqueness, operational constraints, and distribution channels.
Key Insights
- •Small daily price changes can increase exposure on OTAs.
- •STR pricing is dramatically harder than hotel pricing due to product uniqueness, hyper-fragmented demand curves, and operational constraints.
- •Booking windows shape revenue strategy differently in STRs compared to hotels.
Action Items
- ✓Review every booking to reveal pricing and demand signals.Effort: lowImpact: medium
- ✓Schedule revenue management, rather than reacting to demand.Effort: lowImpact: medium
Tools & Resources
- →Freewyld Foundry: Learn more about Freewyld Foundry
Watch Out For
- ⚠Underperforming because hosts don’t know what to look at, when to look at it, or how to interpret booking behavior.
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