How should I price my vacation rental?
Updated June 1, 2026 · Category: Pricing
Key facts
| Metric | Healthy range |
|---|---|
| Occupancy | 60–75% |
| ADR vs comp median | +5% to +15% |
| RevPAR vs market | +10% or better |
| Length-of-stay discount, 7 nights | 10% |
| Length-of-stay discount, 28 nights | 25% |
Step-by-step
- 1
Find five comps
Same city, bedroom count, similar reviews and amenities.
- 2
Set base = median × 1.10
Listings priced slightly above the median rank higher in direct booking discovery.
- 3
Turn on dynamic pricing
PriceLabs, Wheelhouse, or Beyond auto-adjusts for demand, weather, and events.
- 4
Add weekly and monthly discounts
10% at 7 nights, 25% at 28 nights opens the long-stay market.
- 5
Review revenue weekly
Track RevPAR vs market. If you're below market, lower min stay before lowering rate.
Comparison
| Tool | Pricing | Best for |
|---|---|---|
| PriceLabs | $19.99 / listing | Power users, deep customization |
| Wheelhouse | 1% of booked revenue | New hosts who want hand-holding |
| Beyond Pricing | 1% of booked revenue | Mid-size portfolios |
| StayFlow Auto-Price | Included | Hosts already on StayFlow |
Pros and cons
Pros
- ✓ 15–40% revenue lift typical
- ✓ Frees hosts from manual rate changes
- ✓ Captures event spikes (concerts, sports)
Cons
- ✗ Bad caps = giveaway nights
- ✗ Algorithms lag during sudden demand shocks
- ✗ Adds monthly cost unless bundled
Common mistakes to avoid
⚠ Setting rates and forgetting them
Static pricing leaves 15–40% of revenue on the table.
⚠ Min rate too low
Algorithm sells out shoulder dates at unprofitable prices.
⚠ Ignoring length-of-stay discounts
Long stays cost less to clean and reduce turnover risk.
Frequently asked questions
- What occupancy should I target?
- 60–75%. Higher is usually a sign of under-pricing.
- Should weekends cost more?
- Yes, typically 15–25% more Fri/Sat. Dynamic pricing does this automatically.
- How often should I review pricing?
- Weekly at minimum. Daily during peak season.
Related answers
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