Rate Optimization Tool

Understanding Rate Optimization

Rate optimization for extended stays involves balancing two key goals: maximizing revenue during high-demand periods and securing stable, long-term tenants. A dynamic rate strategy helps achieve both.

Occupancy-Based Adjustments: This is a core principle of revenue management. As your property fills up (higher occupancy), the perceived value of your remaining units increases. By automatically raising your rates at set occupancy thresholds, you capitalize on this high demand and maximize revenue from last-minute bookings.

Long-Stay Discounts: While it seems counterintuitive to offer discounts, securing a guest for 3, 6, or 12 months is incredibly valuable. It guarantees revenue, eliminates vacancy periods, and drastically reduces turnover costs (marketing, cleaning, administrative). Offering a small discount is a powerful incentive for guests to commit to a longer, more profitable tenancy.