Anchoring to the Past? Why That’s a Problem in 2025
Summary
Using historical data for pricing can be a mistake in the volatile STR market. This article warns against relying on past performance and encourages hosts to use real-time data and predictive analytics for better pricing strategies and increased revenue.
Key Insights
- •Historical anchoring, tying pricing to past booking performance, can lead to overpriced listings and underperformance.
- •Overuse of customizations in dynamic pricing tools is a sign of a bad algorithm, potentially leading to underperforming against competitors.
Action Items
- ✓Critically assess your dynamic pricing tool – is it saving you time to focus on other revenue-generating tasks?Effort: lowImpact: medium
- ✓Focus on using real-time data and predictive analytics to align your pricing strategies with what guests want today.Effort: mediumImpact: high
Tools & Resources
- →Beyond Pricing: The article is from Beyond Pricing.(beyondpricing.com)
Common Mistakes
- ⚠Anchoring your pricing strategy to past data does not reflect current market conditions and can leave you falling behind competitors.
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Curated by Learn STR by GoStudioM