You’re Probably Comparing Your Performance to the Wrong Market
Summary
This article emphasizes the importance of carefully defining your market when comparing your short-term rental performance. Instead of relying on a generic 'market' benchmark, hosts should create multiple market views based on factors like location, quality, and performance to make informed pricing and strategy decisions.
Key Insights
- •A useful comparison framework looks at the market from multiple angles: physical, qualitative, performance, and strategic.
- •Comparing your performance to 'the market' is often flawed because the market isn't well-defined. Depending on the definition, the same portfolio can appear to outperform, underperform, or stagnate.
- •The best operators build multiple views of the same market and don’t rely on a single comp set.
Action Items
- ✓Instead of asking "How do we compare to the market?", ask "Which version of the market should we compare ourselves to — and why?"Effort: lowImpact: medium
Common Mistakes
- ⚠Copying a price without context is copying an answer without seeing the question. Price matching without understanding constraints or performance of the competitor is risky and could lead to revenue leakage.
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Curated by Learn STR by GoStudioM