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You Don’t Need a Big Team to Scale Big

Why Your STR Pricing Is Still Leaving Money on the Table

Dynamic pricing tools like Wheelhouse and PriceLabs have become industry standards in short-term rentals. They save time, automate rate changes, and help


STR operators stay competitive.


But here’s the catch: most of these tools still rely too heavily on generalized market data and that’s costing you money.


The Problem with Relying 100% on Dynamic Pricing Tools


Most pricing algorithms are built on wide datasets:

  • Average nightly rates in your area

  • Historical booking trends

  • Seasonal demand patterns

  • Local occupancy rates


This is useful, but it’s not the full picture.


Let’s say you own a high-end two-bedroom with designer interiors and a rooftop view. The algorithm might still benchmark it against the “average” two-bedroom nearby… which could include outdated units with zero amenities.


That means:

  • Your listing is undervalued

  • You’re leaving premium revenue on the table

  • You’re competing with budget listings you should outperform


Even worse, many STRs still price below nearby hotels, even when offering more space, better amenities, and a superior guest experience. That pricing logic might have worked in 2015, but in today’s market, it’s a missed opportunity.


What Smart Operators Do Instead


1. Supplement Tools with Property-Level Intelligence

Dynamic pricing tools are great for a starting point, but don’t treat them like gospel.

  • Manually adjust for unique features: rooftop terrace, hot tub, brand-new renovation.

  • Factor in design quality, view, and convenience, things the algorithm can’t see.


2. Monitor Hotel Pricing Nearby

Your competition isn’t just other STRs, it’s hotels, especially for business travelers and families.

  • Track rates for nearby hotels with similar location appeal.

  • If your property offers more value, there’s no reason your rates should be 30% lower.


3. Run A/B Rate Tests

Small pricing experiments can reveal surprising opportunities.

  • Adjust rates for specific periods to see how demand responds.

  • Track conversion rate (bookings per view), not just occupancy.

  • Sometimes slightly higher rates attract better quality guests and improve margins.


4. Bundle Value Instead of Discounting

Avoid racing to the bottom with price cuts. Instead, package premium experiences:

  • Free late checkout

  • Complimentary airport pickup

  • Cleaning service included for longer stays


Guests perceive these as added value, while you maintain healthy revenue.


Real-World Example

One STR operator had a luxury penthouse in a popular downtown area. Wheelhouse consistently suggested $325 per night, based on nearby “comparable” two-bedrooms.


After manually comparing local hotel rates and adjusting for unique amenities (floor-to-ceiling windows, city skyline views, luxury furnishings), they raised the nightly rate to $399.


Results over 60 days:

  • Occupancy dropped by only 3%

  • Revenue increased by 18%

  • Guest reviews stayed at 4.9+ stars


The takeaway? Pricing higher didn’t hurt, it helped.


Final Thoughts

Dynamic pricing tools are an essential part of any STR revenue strategy, but they’re just that: a tool, not the entire plan.


The operators making the most money today:

  • Use algorithms for market insights

  • Layer in human intelligence and property-specific value

  • Price based on experience, not just square footage


The goal is simple: Charge what your property is truly worth, not just what the algorithm tells you.


Want to Optimize Your STR Pricing?

Stop leaving money on the table. Combine dynamic pricing with human strategy and watch your revenue grow.

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