finding an STR daily rate sweet spot with pricelabs

[Stuart Penman]

Hi 

Facts / context: 

- 1 bed 1 bath, renovated to be a tiny bit nicer than the rest of the market - most desirable location in my market

- Using pricelabs for dynamic pricing and tweaking rates down to ensure unbooked days book 1-5 days out. 

- Leveraging multiday discounts

- Gradual discount of 30% applied over 14 days from booking day.

- Leveraging far-out booking discounts 

- Allowing 1-night stays

- Market is seasonal (summer peak), 1st year in the market, currently going into the peak. 

- New listing, will have superhost in a few days. 

- We are beyond the initial boost AIrbnb gives, but remain on the front page about 60% of the time.

Questions: 

- Our occupancy is almost 100% - the market is closer to 60% - comps in our building are between 60-80%. We are priced at the 78% percentile (about, maybe a bit lower with my manual discounting) should I raise base price or stop reducing closer to day-of so frequently to get to 100%? - I suspect I need to raise my prices but I'm not sure of the best approach, or how much and what a target occupancy should be. Basically attempting to find a sweetspot where Occupancy and Daily rate balance to provide the highest possible revenue. Any advice is welcome new to STR and this is our first rental.

[Sarah Kensinger]

Sounds like you need to raise your price and probably stop giving so many discounts out. From what you wrote, I think your leaving money on the table.