Revenue management, answered

Why is my Airbnb revenue down this year compared to last year?

Revenue is down because supply in most markets has outpaced demand growth, compressing both occupancy and ADR simultaneously. Combine that with guests booking shorter stays and later windows, and portfolios that haven't adjusted positioning are taking the hit.

By Jack Murphy, Head of Revenue Management at UpRev. Running pricing for US vacation rental managers since 2017. Last updated October 19, 2026.

Supply Pressure Is the Primary Driver

Most markets saw significant new STR inventory come online over the past two years, and that supply hasn't normalized yet. When your comp set grows faster than traveler demand, you're competing for a smaller share of nights per listing. Managers who haven't audited their competitive set recently are often pricing against a market that no longer reflects their actual competition.

Booking Window and Length-of-Stay Shifts

Guests are booking later and staying shorter, which changes how you need to structure your calendar and rate ladder. If your minimum night requirements and gap-night pricing haven't been adjusted to reflect that behavior, you're leaving nights vacant that a flexible strategy would capture. Review your booking pace data month-over-month and compare lead times against the same period last year before drawing conclusions about demand.

Rate Strategy May Have Drifted Out of Position

Portfolios that held rates too high coming out of the peak demand years are now seeing occupancy erosion, while those that dropped rates reactively are protecting occupancy but losing revenue per available night. The goal is positioning each property at the right price relative to its comp set for each specific demand window. Pull your RevPAR by property, not just ADR, and identify where the drag is actually coming from before making broad rate moves.