top of page
You Don’t Need a Big Team to Scale Big

If Your STR Occupancy Is at 100%, You’re Probably Doing It Wrong

The 100% Occupancy Illusion


In STR circles, 100% occupancy often feels like a trophy. It looks like:

  • No gaps on the calendar

  • Steady check-ins

  • Consistent reviews


But here’s the reality:

If you’re always booked, your prices are likely too low.

You’re leaving money on the table.


The Power of Raising Prices and Leaving Gaps


Let’s break it down:

  • 100% occupancy at £150/night = 30 nights × £150 = £4,500

  • 90% occupancy at £200/night = 27 nights × £200 = £5,400


That’s:

  • More money

  • Fewer turnovers

  • Less wear and tear


And better margins overall.


Stop Chasing the Wrong KPI


Occupancy feels like a win. But it can be misleading.

Smart operators track:

  • RevPAR (Revenue per Available Night)

  • ADR (Average Daily Rate)

  • Profit per Clean


A full calendar doesn’t mean a full bank account.


What’s the Right Occupancy Target?

Most top operators aim for:

85% to 90% occupancy


That sweet spot gives you:

  • Pricing power

  • Flexibility for high-value bookings

  • Space to breathe operationally


Don’t be afraid of a few empty nights. Use them strategically.


How to Adjust Your Strategy

1. Use Dynamic Pricing

Let software adjust your rates based on demand, season, and local events.

2. Track RevPAR Weekly

Not just bookings. Look at revenue efficiency.

3. Test Higher Rates

Try bumping prices 10–20% during peak demand. Track the impact.

4. Use Gaps Wisely

Short gaps can be perfect for deep cleans or last-minute high-paying guests.


Optimize for Revenue, Not Just Occupancy

Filling every night feels productive. But it often means you’re leaving money behind.


Smart STR operators focus on:

  • Profit per night

  • Property longevity

  • Sustainable growth


Raise your rates. Embrace healthy gaps. Let go of the 100% myth.


FAQs About STR Occupancy Strategy

Q1: Why is 100% occupancy a problem?

It often signals underpricing. Higher prices with slightly lower occupancy usually deliver better revenue.

Q2: What occupancy rate should I aim for?

Aim for 85–90% occupancy with strong nightly rates. It balances income and efficiency.

Q3: How do I know if my prices are too low?

If you're consistently fully booked in advance, it's a strong signal to raise rates.

Q4: Will raising prices hurt my reviews?

Not if the value matches the price. Quality properties at fair prices still get great reviews.

Q5: What tools can help with this?

Use dynamic pricing tools like PriceLabs, Beyond, or Wheelhouse to optimize rates in real time.


Other Blogs:


Ready to stop chasing occupancy and start optimizing revenue? Adjust your pricing, track better metrics, and leave room for bigger wins.

Comments

bottom of page