STR Revenue Maximization

[Julia Bykhovskaia]

A question to experienced hosts with urban locations: how do you fine tune your pricing and what occupancy do you target? I’ve been targeting 100% occupancy and I get close (93%) but I realize it’s probably not the best revenue maximizing strategy. I will probably be making more money with higher prices and lower occupancy. The big unknown - is the elasticity of demand and how much will it fall if you move prices up. Probably a trial and error exercise, I don’t see any other way to do it. Any thoughts/insights/experiences to share? Thank you very much in advance!

[Eric Sullivan]

@Julia Bykhovskaia I’ve tested this a lot and I’d agree in the 90% range is a good target. The other thing to be wary of is people who are looking for the lower priced deal I tend to find 9 times out of 10 complain a lot more. Better to price those people out of the equation as well.