As a general strategy, start off by locking in yourtarget prices(i.e. the prices you believe you shouldideallybe charging for your place).
You shouldn’t need to consider reducing your pricesuntil at least one month before the current date. As you get closer to the current date, gradually begin to reduce your prices every few days as the current date approaches.
Save significant price reductionsfor last-minute holes in your calendarthat will almost certainly remain unfilled because of other bookingsthat sandwich it.
As a rule of thumb, you can look to reduce your nightly rateby 10% each day in the final week leading up to a vacant block on your calendar. The proviso to this is knowing your ‘red line’ – the amount at which it becomes unprofitable and/or not worth your timeor effort to get booked below that price.
Ensure also that any short-term bookingsyou do acceptare not likely to compromise your ability to accepta longer, more lucrative booking.
All of this inevitably requires operating according to a framework of assumptions and educated guesses. Things won’t always work out in your favor. Nonetheless, lowering your pricesto fill holes in your calendar, and being strategic with the bookingsyou decide to acceptwill ultimately pay off in the long run.
Want a data-driven, evidence-based approach for knowing when (and when not) to lower your prices? Find price optimization services able to help:
