Insight
In low season or with new portfolios, prioritizing occupancy is sensible to build bookings and reputation before raising rates.
ADR vs Occupancy: How to Optimize Pricing Performance
Summary
Optimizing vacation rental pricing requires balancing Average Daily Rate (ADR) and occupancy, not just maximizing one. Revenue Per Available Room (RevPAR) is key. Prioritize occupancy in low season/new listings, and ADR in high season/events. Watch for signs of imbalance like high occupancy with flat ADR.
Key takeaway