EP235: Time for Change
Summary
This article discusses revenue management strategies for STR hosts, emphasizing the importance of scheduled pricing routines, analyzing booking behavior, and understanding the unique challenges STRs face compared to hotels. Hosts should schedule daily and weekly pricing reviews, and pay close attention to booking windows and demand signals to optimize their revenue.
Key Insights
- •Smaller markets like Kansas City, Boston, Seattle, and Philadelphia may outperform larger cities during the FIFA World Cup.
- •The article emphasizes that STR pricing is dramatically harder than hotel pricing due to product uniqueness, fragmented demand, and operational constraints.
- •Early bookings can indicate underpricing or upcoming events, and last-minute inventory reveals demand and visibility.
Action Items
- ✓Review every booking to reveal pricing and demand signals.Effort: lowImpact: medium
- ✓Make small daily price changes to increase exposure on OTAs.Effort: lowImpact: medium
- ✓Review pacing on a weekly basis using Market Penetration Index (MPI).Effort: lowImpact: medium
Tools & Resources
- →Freewyld Foundry: Learn more about Freewyld Foundry.(https://www.freewyldfoundry.com)
Common Mistakes
- ⚠Most hosts underperform not because they lack tools, but because they don’t know what to look at, when to look at it, or how to interpret booking behavior once it shows up.
More from Pricing & Profitability
A host reported earning $2,300 monthly on Airbnb with almost constant bookings, only to quit due to difficult guests. This highlights the financial potential of STR hosting but also emphasizes the importance of guest screening and managing guest behavior. Balancing profitability with a positive hosting experience is crucial.
This article discusses Kansas City's high occupancy rates compared to other World Cup host cities, raising questions about the effectiveness of efforts to increase short-term rental availability. It implicitly touches on market trends and the impact of major events on the STR market. The article likely explores whether increased rental supply can meet demand while analyzing the city's approach to STRs.
Realtor.com's report on best mountain towns for Airbnb returns reveals key locations for STR investment. The analysis likely includes data on occupancy rates, ADR, and RevPAR to identify profitable markets. Understanding these trends helps hosts optimize pricing strategies and choose lucrative destinations.
Curated by Learn STR by GoStudioM