Revenue management, answered

How far below the market's 25th percentile should a struggling listing go?

Drop to the floor of the 25th percentile first, hold for 48 to 72 hours, then step below it in small, deliberate decrements. Going straight to a distressed price signals desperation to the market and trains future guests to wait you out.

By Jack Murphy, Head of Revenue Management at UpRev. Running pricing for US vacation rental managers since 2017. Last updated August 25, 2026.

Step Down, Don't Collapse

Moving below the 25th percentile should happen in measured increments rather than a single aggressive cut. Each step needs time to register in search results and generate booking signals before you decide whether to go further. If you cut too fast, you lose the ability to read what the market is actually telling you about the listing's positioning problem versus a pure price problem.

Diagnose Before You Discount

A struggling listing below the 25th percentile is usually signaling a conversion issue, not just a rate issue. Check your photos, minimum stay requirements, cancellation policy, and review score before assuming rate alone is the lever. Cutting price into distressed territory while those friction points remain unsolved burns revenue without solving the root cause. Fix the listing quality issues in parallel with any rate adjustment.

Know When to Stop Discounting

There is a floor below which further cuts stop generating bookings and simply erode your owner's net operating income without improving occupancy. If the listing still does not convert after reaching the bottom of the comp set range, the conversation shifts to minimum stay strategy, length-of-stay adjustments, or a honest review of whether the property is priced correctly for acquisition relative to its market position. Continued discounting past that point is a management problem, not a pricing solution.