Revenue management, answered

Why aren't we dropping prices faster instead of inching them down gradually?

Gradual reductions protect rate integrity and keep you from cannibalizing your own future demand. Sharp drops signal distress to the market, train repeat bookers to wait for panic pricing, and are nearly impossible to walk back without losing credibility.

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

Steep Cuts Create a Price Floor Problem

When you slash rates aggressively, you reset guest expectations for that property and that comp set. Bookers who saw the high price and the low price will anchor to the bottom number next time they shop. Incremental reductions let you test demand response at each step without permanently re-positioning the property in the market.

Pacing and Lead Time Dictate the Right Cadence

The correct reduction speed depends on how far out the dates are and how your current pace compares to the same point last year. A property that is two weeks out and twenty percent behind pace warrants faster movement than one that is six weeks out and only slightly soft. We track both metrics together before adjusting, so each move is deliberate rather than reactive.

Protecting the Owners You Manage

Your clients hired you to maximize their returns, not just fill nights. A booked calendar at deeply discounted rates often nets less than a partially booked one at healthy rates, once you account for cleaning costs, wear, and owner perception of your performance. Showing controlled, reasoned adjustments also builds the trust that keeps owner contracts renewing.