We don’t guess at rates. We analyze your market, set a data-driven base price, and configure dynamic pricing to optimize for revenue—not bookings.
The Comp Set Analysis: Your Market Reality
On day one, we pull data on every comparable property in your area using AirDNA—the same market intelligence tool that Airbnb, investment firms, and professional property managers use. We’re not eyeballing Airbnb listings and picking a number that feels right. We’re analyzing actual occupancy, actual ADR (average daily rate), and actual revenue patterns for properties like yours.
Here’s what the analysis looks like: We identify 15–25 comparable properties based on bedroom count, location, and amenities. We pull their 12-month occupancy rate, their ADR, their average monthly revenue, and their seasonal patterns. We see which comps are performing well and which are struggling. Then we build your pricing strategy around the performers.
Base Rate Setting: Not a Random Number
Your base rate isn’t a guess. It’s set by your comp set’s median ADR, adjusted for your property’s specific strengths or weaknesses. For example: you have a three-bedroom house in Nashville. Comps show a median ADR of $185 with 68% occupancy. Your house has a perfect location, new appliances, and an excellent review from your first guest. We might price you at $195 ($10 above comps) because you can earn that premium.
Conversely, if your property is newer to Airbnb and reviews are still building, we might price slightly below comps initially to accelerate bookings and social proof. Price too high, and you sit empty and build no reviews. Price competitively, and you establish yourself.
The math of base rate decisions: A host in Nashville we worked with was pricing flat at $200/night. His occupancy was 52%. Comps were averaging $185 ADR at 71% occupancy. We repriced him at $175. Within two months, his occupancy jumped to 69%, and his total monthly revenue nearly doubled because volume offset the per-night discount. That’s the power of data-driven pricing.
Dynamic Pricing Rules: Seasonality and Demand Patterns
We don’t set one rate and leave it static. We build dynamic pricing rules that adjust your rate based on day of week, season, and demand signals. Here’s how it works:
Weekday vs. weekend pricing: Most leisure markets see weekends command 15–25% premium over weekdays. We build that into your rules. Friday and Saturday nights are higher; Sunday through Thursday are lower. This captures real demand and prevents dead weekday inventory.
Seasonal tiers: If you’re in a ski town, winter pricing is premium. If you’re at the beach, summer is premium. Holiday weeks (Thanksgiving, Christmas, New Year’s) typically command 30–50% premiums. We build seasonal rules that move your price up for high-demand periods and relax them for shoulder seasons.
Demand curves: As your occupancy rate climbs, we automatically increase rates. If you’re running 80%+ occupancy in a month, you’re likely underpriced—rates go up. If you dip below 50%, we might ease rates down to stimulate bookings.
The philosophy: maximize revenue, not booking count. Some hosts think “more bookings = better.” Wrong. More occupancy at the right price point is better. You can run at 50% occupancy and make more total revenue at $250/night than at 70% occupancy and $150/night.
Minimum-Night Strategy
We configure minimum night requirements strategically. In leisure markets (beachside, vacation homes), two-night minimums work. In business markets (downtown apartments near tech hubs or hospitals), one-night minimums are essential. Mixed markets get dynamic minimums—weekends three nights, weekdays one night.
Long-stay discounts: we set them too. If a guest books 30+ nights, they get 10–15% off your nightly rate. This incentivizes longer bookings, reduces turnover costs, and smooths out your calendar. You’ll take $150/night for 30 nights over $200/night for 3 nights any day—less cleaning, less risk, more predictable revenue.
The First 30 Days: Pricing is Living**
Your pricing is not set in stone after day one. In your first month, we monitor your booking velocity closely. If you’re booked out weeks in advance, we’re raising rates. If you have gaps, we’re adjusting down slightly or extending minimum stays to control inventory. This isn’t randomness; it’s active management.
We pull data daily. We adjust weekly if needed. By day 30, your pricing is optimized for your specific market and your specific property characteristics. After that, we dial it in monthly based on seasonal patterns and new comp data.
Transparency: You See All the Numbers
We send you monthly reports showing your occupancy rate, your ADR, your monthly revenue, and how you’re performing against your comp set. You see our pricing decisions and the reasoning behind them. If you disagree with a rate or a rule, we adjust. But we also explain why we made the decision—not just what it is.
Colby & Conrad handles all pricing optimization automatically. You set your availability; we set your rates based on data. No guessing, no random pricing changes. Just revenue maximization based on your market’s reality.
Questions about why we priced you a certain way? We’ve got the comp data to show you. That’s the difference between a property manager and a PM software platform—we explain the logic, not hide it.
