Revenue management, answered

How wide an area should my comp set cover, and where do I draw the boundary?

Draw your comp set around traveler decision-making geography, not city limits. If a guest searching your market would realistically consider a property as an alternative to yours, it belongs in scope. That radius shifts by market density and property type.

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

Start With the Traveler's Substitution Logic

Your boundary should reflect where a guest stops comparing and commits. In a dense urban market that might be a two-mile radius; in a mountain or lake market it could span an entire corridor or lake shore. Segment by property type first, then by geography, because a cabin guest and a condo guest are not shopping the same set even if the properties share a zip code.

Tighten or Expand Based on Supply Behavior

If nearby properties consistently move in price lockstep with yours during compression events, they belong in your comp set regardless of distance. If properties five miles away show no correlated demand patterns, exclude them even if they look similar on paper. Review comp set boundaries at least seasonally, because new supply and shifting traveler patterns change substitution dynamics over time.

Watch for Boundary Errors That Distort Pricing

Too wide a boundary dilutes your signal with irrelevant supply and pushes your reads toward average rather than competitive. Too narrow and you miss the properties guests are actually choosing over yours. When you inherit a new portfolio, audit the existing comp logic on day one before you make any rate moves.