Revenue management, answered

Why do prices fall as the stay date gets closer, and is that normal?

Prices fall close-in because unsold nights become worthless at checkout, so the market discounts to fill them. It is normal in most markets, but unmanaged last-minute drops are often steeper than they need to be and leave real money behind.

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

Why It Happens and When It Is Acceptable

Demand thins as the booking window shrinks because most planners have already committed elsewhere. A controlled, modest price reduction in the final one to two weeks is standard revenue-management practice. The problem is when properties drop aggressively weeks out, signaling poor baseline pricing rather than smart late-demand capture.

How to Keep Last-Minute Discounts from Eroding Your Portfolio

Set a floor price per property and hold it unless occupancy is critically low inside a defined short window, typically seven to ten days out. Review close-in pace weekly across your portfolio and distinguish between units that always soften late versus those with a specific gap. Chronic last-minute discounting usually points to a pricing or positioning problem earlier in the booking curve, not a demand problem.

The Practical Discipline Behind Close-In Pricing

Strong close-in yield management means resisting the instinct to slash rates the moment a calendar shows gaps. Evaluate the remaining demand in that market, the day-of-week composition of the open nights, and your minimum acceptable revenue for those nights. Selective, targeted reductions on the weakest nights while holding rate on stronger nights in the same window is how professional managers protect RevPAR.