Insight
A high ADR (Average Daily Rate) can be misleading if occupancy is below market or if a large share of revenue comes through channels with higher commissions.
Revenue Management vs Dynamic Pricing
Summary
Distinguish between revenue management and dynamic pricing for STR success. Revenue management is a holistic strategy encompassing pricing, distribution, and segmentation, while dynamic pricing focuses solely on rate adjustments based on market conditions. This distinction is crucial for scaling and explaining portfolio performance to owners.
Key takeaway