Revenue management, answered

Should two competing listings of different sizes in the same building be priced relative to each other, or independently?

Price them relative to each other, always. Two units in the same building compete directly for the same guest, so ignoring the relationship creates cannibalization, guest confusion, and rate integrity problems that hurt both listings over time.

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

Establish a Stable Size Premium

Set a consistent price relationship between the units, larger commanding a defined premium over the smaller, and hold that spread as a baseline discipline. When the spread collapses or inverts, guests book the larger unit as a value play and you leave money on the table. Review the relationship regularly and adjust the baseline seasonally, not reactively.

Manage Demand Signals Together

When one unit books, treat that as a demand signal for the other and move its rate accordingly. A booked smaller unit often means the larger is underpriced for that window, and vice versa. Looking at each listing in isolation means you are reacting to half the data available to you from that building.

Protect Length-of-Stay Positioning

Smaller units typically perform better on shorter stays, larger units on longer ones. Build minimum-stay rules and rate ladders that reinforce that natural split rather than letting the two listings compete for the same booking window. Consistent positioning across both units makes the property easier to sell and reduces guest objections at the point of inquiry.