Revenue management, answered

How low is too low - will cutting my price damage my perceived value or attract the wrong kind of guest?

Price floors matter more than discounts. Set a hard minimum that covers your cost basis and protects positioning, then discount only within a defined band above that floor. Deep cuts below your comp set signal desperation, not value, and do attract lower-quality bookings.

By Jack Murphy, Head of Revenue Management at UpRev. Running pricing for US vacation rental managers since 2017. Last updated September 1, 2026.

Define Your Floor Before You Touch Discounts

Every property in your portfolio needs a calculated minimum rate based on owner costs, market positioning, and your management margin. Discounting below that floor is never a revenue strategy, it is a liability. Train your team to treat the floor as non-negotiable regardless of vacancy pressure. Properties that hold their floor consistently maintain stronger review profiles over time because the guests who book at those rates generally respect the asset.

How Deep Cuts Change Who Books

When you price a premium property at budget-tier rates, you shift your booking pool toward guests who prioritize price over fit. That mismatch shows up in damage incidents, noise complaints, and reviews that hurt future revenue more than one vacant night would have. A controlled last-minute discount of a modest amount within your defined band is a legitimate tool. Dropping to fill calendars at any cost is not revenue management, it is panic pricing, and it compounds over a season.

Perceived Value Is Set by Your Rate History, Not Just Today's Price

OTA platforms surface your historical pricing to repeat searchers, and guests draw conclusions about a property's tier based on the rates they have seen before. If a property swings wildly between a high rack rate and a deeply discounted floor, guests learn to wait for the low. Consistent, disciplined pricing within a tighter band trains the market to book earlier at fair rates. That booking behavior is far more profitable across a full portfolio than chasing occupancy with aggressive cuts.