Go from revenue management to profit management to maximise STR success during peak season

Peak season is when expert property managers separate themselves from the competition. With demand at its highest, it’s your opportunity to drive higher revenue across your portfolio. But here’s the challenge, what worked last year won’t necessarily work this year. Guest booking habits have changed, competition is tougher, and simply filling your calendar isn’t enough.

The best property managers aren’t just chasing occupancy anymore, they’re shifting to profit management. That means pulling the right revenue levers, dynamic pricing, MinLOS, cancellation policies, and promotions at the right time. In this blog, we’ll show you exactly how to play it smart.

The changing landscape of peak season bookings

Guest booking behavior has evolved, and relying on historical pricing trends alone is not enough anymore. According to AirDNA, median booking lead times in the U.S. have remained under 30 days for the past year, a significant drop from nearly 40 days pre-pandemic.

Meanwhile, event tourism is booming. The global event tourism market is projected to hit $2.38 trillion by 2034. Major concerts, sports tournaments, and festivals are driving unpredictable demand spikes, meaning a rigid pricing strategy could cost you big opportunities.

On top of that, oversupply is becoming a real challenge. In many markets, the number of available listings has grown significantly, increasing competition and making it harder to stand out.

Airbnb’s ranking algorithm has also changed, Superhost status for example no longer guarantees visibility. Instead, ranking is now heavily influenced by guest search behavior, meaning that listing optimization plays a much bigger role in getting visibility in the search results.

What does this mean for property managers?

A good peak season strategy requires moving beyond basic revenue management and switching to a profit management mindset. In the next sections, we’ll break down exactly how you can do that.

From revenue management to profit management

For a long time, short-term rental managers focused on revenue-based metrics like RevPAR (Revenue Per Available Rental) to measure performance. But high occupancy doesn’t always mean high profits, especially when operating costs eat into revenue. 

That’s why the industry is shifting toward profit-driven revenue management, focusing on metrics like GOPPAR (Gross Operating Profit Per Available Rental).

A recent study found that 33.7% of revenue professionals now prioritize GOPPAR, signaling a clear shift in the way revenue is measured. The key difference? While RevPAR only looks at top-line revenue, this newer metric factors in costs, making them far better indicators of profitability.

GOPPAR: gross operating profit per available rental

GOPPAR (Gross Operating Profit Per Available Rental) gives you a clearer picture of your portfolio’s profitability by factoring in both revenue and expenses. Instead of just looking at revenue like RevPAR does, GOPPAR tells you how much profit each available rental is actually generating.

Here’s how it works:

The GOPPAR Formula

GOPPAR = Gross Operating Profit (GOP) ÷ Total Available Rentals (TAR)

To break it down:

GOP is your total revenue from all sources (rentals) minus all operating expenses (laundry, labor, utilities, maintenance, etc.). TAR is the total number of available rentals over a given period.

When GOPPAR starts dropping, it’s a sign that either costs are rising too fast or revenue isn’t growing enough, and it’s time to adjust your pricing or expense strategy.

However, it is important to track GOPPAR across your portfolio and over longer periods of time, since this is a dynamic metric that will drop or rise based on many factors. 

GOPPAR in Action: A Real Example

Let’s break it down with an example:

• Your STR property earns $10,000 in revenue for the month
• Your operating expenses (utilities, maintenance, insurance) add up to $4,000
• Your properties were available for 30 nights

So, your GOPPAR is $200 per available night, that’s your real profit after expenses. If this number starts shrinking, you know your costs are rising faster than your revenue, and it’s time to adjust either pricing or expenses.

That is why GOPPAR is a better metric to track than RevPAR, since RevPAR does not take costs into account, showing a skewed image of your profitability.

Here’s how you can use GOPPAR effectively

• Benchmark against competitors : STR reports help you compare your property’s GOPPAR with similar listings. If you're falling behind, it might be time to adjust your pricing or cut unnecessary costs.
• Track seasonal trends: GOPPAR isn’t static; it fluctuates with demand. Understanding these trends allows you to optimize pricing and resource allocation during peak and low seasons.

To get a better picture of your market, AirDNA is a useful tool. While it doesn’t provide GOPPAR directly, it gives detailed insights into occupancy rates, average daily rates, and revenue Bart-Jan’s comments

GOPPAR for PMCs

PMCs typically take a commission on bookings, which is in this scenario  20% of the gross reservation price (though this can vary depending on whether the commission is based on gross or net revenue after OTA fees). Important here is that this is an simplified versio of reality as this doesnt include OTA fees.

On top of that, PMCs have fixed costs that come with running their business, such as:

• Software costs: $100 per unit per month (for RMS, PMS, messaging tools, etc.).
• Overhead costs: $25,000 per month (staff salaries, office expenses, marketing, etc.).
• Number of units under management: 50.

Break-even calculation for a PMC

If we divide overhead by the number of units:

• Overhead per unit = $25,000 / 50 = $500 per month
• Total cost per unit = $500 (overhead) + $100 (software) = $600 per month

This means that each unit needs to generate at least $3,000 (assuming 20% payment percentage) per month in reservation revenue for the PMC to break even.

What does this mean in daily terms?

If a unit needs $3,000 in revenue per month, that means it needs to earn:

• $3,000 ÷ 30 days = $100 RevPAR (Revenue per Available Room) to cover costs for the PMC.

So, for a PMC, if RevPAR > $100, they are profitable (GOPPAR > 0). If it’s lower, they’re operating at a loss

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GOPPAR Isn’t always positive and that’s okay

For Property Management Companies (PMCs), GOPPAR (Gross Operating Profit Per Available Room) is a key financial metric, but it won’t always be positive, especially during the low season. And that’s not necessarily a problem.

The graph below highlights GOPPAR trends in four European countries over six months. While every country sees a boost in peak season, the extent varies. This shows why benchmarking against competitors is crucial, aim for a higher GOPPAR, but set realistic targets. 

On top of that it shows that flexibility is important and that you need to keep in mind that it is the total profit you make over the year that determines your success, not a short-term metric. Look at Berlin as an example, their GOPPAR is negative during low season in January, but the average over the 6 months is still positive, making it a profitable period. 

Why would a PMC accept a negative GOPPAR?

PMCs don’t just optimize for short-term profits; they play a long-term game. There are times when it makes sense to operate at a small loss on some units, particularly during low demand periods, to keep property owners happy.

Here’s why:

1. Owner Retention: If a PMC aggressively raises prices in low season to stay profitable, owners might get frustrated with low occupancy rates and switch to another PMC.
2. Portfolio Stability: Keeping units occupied, even at a slight loss, maintains consistency in operations and guest experience.
3. Better OTA Ranking: Platforms like Airbnb and Booking.com reward consistent bookings with better rankings. A property that remains active, even at lower rates, will show up higher in search results, leading to more bookings throughout the year. This gives PMCs more leverage when demand is low.
4. Long-Term Profitability: The high season needs to compensate for these low-season losses.

So, how do PMCs ensure a profitable year overall?

The peak season balancing act

Since low-season losses are almost inevitable, PMCs must maximize profits during peak demand periods to maintain a healthy annual GOPPAR. To achieve this, you have to make smart revenue management moves, which we will go deeper into in the following sections. 

An important note is that your revenue management strategy depends on many factors. GOPPAR does not consider wear and tear due to high occupancy, or if you are trying to scale fast as a company, you might accept some years of losses to focus on profit in a later stage of the company. It is important to keep a broad overview of your long-term strategy to decide what short-term goals will help you reach that. This blog gives realistic advice that is applicable to some property management companies, but for personalized advice, we recommend you book a call with our experts. 

Putting it all together

A PMC's annual profitability depends on this cycle:

1. Low Season → Some units might operate at a loss (negative GOPPAR).
2. Mid Season → Break-even period; maintaining stable operations.
3. Peak Season → Maximize GOPPAR to offset low-season losses and end the year profitably.

Setting a strategic revenue management plan

Now that you know when to expect high demand,you should build a pricing strategy that actually drives profitability. 

Define your minimum rates

Establish your standard pricing based on operational costs and desired profit margins. When deciding on your base price for peak season, it helps to know that in many markets, rental rates can jump by 30–50% compared to slower periods. 

For example, data from a recent pricing report shows that, from pre-pandemic levels to 2024, a 3-bedroom rental on the Cape increased by about 44%, while on Martha’s Vineyard rates jumped by roughly 52%. In contrast, on Nantucket, the increase was closer to 14%. This variation reminds us that the boost you can command depends on your market and property type.

Here’s a quick table to illustrate:

By studying your local market data and competitor rates, you can set a base price that maximizes revenue during peak times while still attracting bookings. 

Fixed vs. Variable Costs: When to Lower Prices

To price effectively, you need to separate fixed costs (PMS, RMS, maintenance, insurance) from variable costs (OTA commissions, etc.).

Breaking even

• If fixed costs total $4,000 per month for 50 listings, that’s $80 per unit per night.
• Variable costs (e.g., OTA commissions at 20%) mean your break-even ADR is $96 ($80 + $16).

Lowering prices in low demand

• If you sell a night for $50, after the $10 variable cost, you still contribute $40 toward fixed costs.
• While this is $30 below break-even, it’s better than $0 from an empty unit.

When it’s too low

• At $13 per night, the $2.60 variable cost leaves just $10.40, meaning you lose an extra $3 per booking instead of just absorbing fixed costs.

Bottom line: As long as your price covers variable costs, you’re still reducing losses. But if it doesn’t, you’re better off leaving the unit empty.

Analyze your compset and adjust dynamically

Competitor analysis is about understanding why they’re priced the way they are.

Ask yourself:

• Are they offering better amenities or a stronger guest experience?
• Do they have a higher review score, which lets them charge more?
• Are they ranking higher in Airbnb search, leading to better conversions?

If a competitor is charging 10% more but filling up just as fast, that’s a signal that you’re undervaluing your listing. On the flip side, if their prices are high but their calendar is half-empty, it might indicate a pricing misalignment with demand.

 Keep an eye on competitor pricing

Before setting your rates, analyze the average daily rate (ADR) in your market. This gives you a benchmark to ensure your pricing is competitive yet profitable.

Track booking pace and adjust rates proactively

One of the biggest pricing mistakes short-term rental managers make is waiting too long to adjust rates. The key is tracking your booking pace (how quickly your listings are getting booked) and adjusting prices before it’s too late. 

If you notice that your calendar is filling up far in advance, it’s a sign that your rates are too low, meaning you could be earning more. On the other hand, if your occupancy is lagging behind expectations, strategic discounts can help attract last-minute guests.

A pricing rule of thumb

If bookings are filling up too fast (more than 60% occupancy for dates 30+ days out), raise your rates, demand is strong, and you can capitalize on it.

If occupancy is below 30% just a few weeks out, lower your prices to stimulate demand and avoid vacant nights.

Implement psychological pricing strategies

Subtle pricing changes can increase conversions:

• Charm pricing: $199 instead of $200 makes prices feel significantly lower.
• Urgency-based pricing: Increase rates when only a few nights are left to trigger FOMO (fear of missing out).

You can test different pricing strategies for different listings to see which tactics maximize conversions.

Pricing & listing page views

Your pricing strategy doesn’t just impact revenue, it also affects your listing’s visibility in Airbnb’s search results. Airbnb’s algorithm prioritizes listings with competitive, market-driven pricing, meaning that your rates directly impact where your property appears in search results.

 If your price is significantly higher than comparable listings in your area, your visibility may drop, making it harder for potential guests to find your property. 

On the other hand, frequent price updates signal activity to Airbnb’s system, which can positively influence your ranking and increase exposure. By regularly adjusting your rates based on market demand, you improve your chances of appearing higher in search results and attracting more bookings.

This visibility also plays a key role in how quickly you can refine your pricing strategy. When you adjust your rates, it typically takes 3 to 4 days to see the effects on ranking, views, and bookings, but this is based on a certain number of impressions. The more views your listing gets, the faster you can assess the impact of pricing changes. Higher visibility means you can react more quickly to market trends, fine-tuning your approach in smaller increments and staying ahead of the competition.

Timing your promotions for maximum impact

Discounts and promotions can be a game-changer for boosting bookings, but timing is everything. Slash prices too early, and you might miss out on revenue. Wait too long, and you’re stuck with empty nights. 

Understanding Airbnb’s discount system

Airbnb offers built-in discount tools to help you fill your calendar, attract new guests, and climb the search rankings. 

Choosing the right discount for your goals

Not all discounts are created equal. Some are perfect for new listings, while others work wonders for last-minute gaps or longer stays. Here’s the overview:

New listing promotion: build trust & get booked fast
Launching a new listing? Offer a 20% discount on your first three bookings. With no reviews yet, this helps build credibility and gets you booked 30% faster, according to Airbnb.

Custom promotion: flexible discounts for specific dates
For established listings, set custom discounts (15% or more) for selected dates to stand out in search results. Just remember: you can’t combine it with weekly or monthly discounts, and only 50% of nights can be discounted each month.

Length-of-stay discounts: attract longer bookings & save on turnover
Offer weekly (7+ nights) or monthly (28+ nights) discounts to lock in longer stays. A 10%+ discount gets highlighted in search results, making your listing a magnet for extended stays.

Early bird discount: secure bookings in advance
Reward planners with a discount for booking 1–36 months ahead. A 3%+ discount gets flagged on your listing, helping you fill your calendar early and avoid last-minute stress.

Last-minute discount: fill empty nights fast
For spontaneous travelers, set tiered discounts (e.g., 10% off within 14 days, 20% off within 3 days) to snag those last-minute bookings.

How promos affects your visibility on Airbnb

Your pricing doesn’t just impact your revenue, it also affects how often your listing shows up in search results. Airbnb’s algorithm loves competitively priced listings, so even small adjustments can make a big difference.

• A slight price drop (5–10%) can boost visibility without killing your profits.
• Larger discounts (10%+) trigger Airbnb’s “deal” badge, but be careful, steep cuts can make guests question your original pricing.

Keep your profit in mind

When applying these promotions, it's crucial to tie your discount strategy back to overall profit management. While discounts can boost your visibility and fill your calendar, you have to continuously evaluate how these promotions affect your bottom line. 

Testing small price tweaks before applying larger discounts helps ensure you attract more bookings without sacrificing profit margins. By monitoring demand predictors and regularly reviewing market trends, you can fine-tune your discounts to maintain an optimal balance between high occupancy and healthy profitability.

Minimum length of stay (MinLOS): balancing occupancy and profit

Now, let's talk about Minimum Length of Stay, or MinLOS. Think of it as a lever in your revenue management toolkit. You already know the core idea: setting a MinLOS impacts both your occupancy and your bottom line. By strategically dictating the minimum number of nights a guest can book, you attract the right type of guest at the right time, all while keeping those turnover costs in check. 

As mentioned earlier with higher-profit guests, a guest with longer stays adds far more to your revenue than someone with a shorter one.

Equally important is strategically increasing your MinLOS to avoid those awkward gaps in your calendar. Guests are often searching for full-week or extended weekend stays during peak season, and a random two-night booking in the middle of the week can effectively block out a much more lucrative opportunity.

When demand is through the roof, like during those peak holidays, festivals, or major events, ramping up your MinLOS (say, to 3-7 nights) can practically guarantee you're consistently booked and it minimises cleaning cycles and workload.

Fortunately, platforms like Airbnb, along with various third-party tools, provide built-in analytics to help you precisely track key performance indicators like average booking length. By carefully analyzing this data, you'll gain valuable insights into discernible trends and patterns, which can then be leveraged to fine-tune your MinLOS strategy proactively.

Set the date range to span a year back and project forward approximately 6 months, providing a balanced perspective on both past and prospective trends. This data shows how many days guests are looking to book in the upcoming period, this can help you set the ideal MinMOS restrictions. 

Create a structured framework for consistently adjusting your Length of Stay (LOS). During high season or events, increase your MinLOS months in advance. As the date gets closer, reduce it if you are finding that your occupancy is less than what you expect.

To summarize, we added a checklist to this blog to help you decide when to pick what strategy in order to maximize your revenue and we added some tips for your listing optimization to get the most out of your strategy.

Get your personal version of the checklist here.

Cancellation policies: protecting revenue without deterring bookings

Your cancellation policy plays a crucial role in balancing guest flexibility and host protection. While stricter policies reduce last-minute cancellations, they can also deter bookings. Here’s how to strike the right balance:

What's the impact on your visibility and conversion rates? 

Data suggests listings with flexible cancellation policies tend to show up more frequently on the first page of search results (47-48% vs. 43% for stricter policies). 

Similarly, flexible policies tend to generate higher conversion rates (1.3% compared to 0.4% with super strict rules), meaning people are more likely to book when they see flexibility.

This aligns with that desire for 'flexibility and understanding' during the booking process, people like to have the option to change plans. But the good side of stricter policies is of course, that you can be more sure of the guaranteed income.

So, the golden question is: How do you find that sweet spot? 

Assess your own visibility

Compare your listing views with the competition. If you're already dominating the search results with a highly visible listing, you can potentially afford to implement somewhat stricter policies. However, if you're fighting to get noticed, it might be wise to lean toward more flexible options.

Consider booking windows

We’ve already discussed your average booking lead time, and it’s crucial to keep in mind. Data suggests that longer booking windows tend to result in higher cancellation rates, up to 30%. In these cases, having stricter cancellation policies may make more sense. 

However, for shorter booking windows, being more flexible can be beneficial, as it tends to encourage more bookings and reduces the risk of empty nights.

Adapt to market demand

During peak seasons or major events, you may be able to get away with stricter policies because people are booking whether there is a flexible cancellation policy or not. A smaller window with a strict policy is often better for shorter trips because people are more likely to see them through. However, in slower periods, you might attract more bookings by offering more lenient cancellation terms.

Remember, cancellation policies are not set in stone! You can adjust them based on changes in market dynamics, seasonality, or your own performance. By taking a data-driven, strategic approach, you can strike the right balance between protecting your revenue and attracting more bookings

Find out more about how to pick the best cancellation policies to maximize your revenue here. 

Increasing visibility to leverage the peak season’s potential

Higher visibility allows hosts to adopt stricter policies without losing bookings. By optimizing listings with effective keywords, improving search rankings you can have more flexibility in choosing pricing-, cancellation and MinLOS strategies. Let’s break down how you can actually increase your visibility with strategic listing optimization. 

How can you optimize your Airbnb listings’ visibility

To improve your visibility, you need to take a good look at every detail of your listing and see how you can improve it. We will go over every important aspect you should consider, starting with the basics. 

Start with the basics

Before optimizing anything, make sure you have covered all of the basics, like completing your listing, adding your house rules, completing your FAQ’s and so on. 

You can use this detailed free checklist to help you get started.

Optimize your Airbnb title to get people to click on your listing

Your Airbnb title is one of the first things potential guests see, and with only 32-50 characters, it needs to be clear and compelling. A well-optimized title improves search rankings, attracts clicks, and sets the right expectations.

How to write a high-performing Airbnb title:

A simple, effective formula is:
{Adjective} + {Property Type} + {Benefit/Location}

Using relevant keywords helps match your listing to the right searches. Terms like pet-friendly or lakefront immediately highlight key features. Avoid generic words like cozy that don’t add value.

Since guest search behavior changes based on seasonality, events, and trends, your title should be updated regularly. Keep testing different versions to maximize visibility and bookings. 

Optimize your Airbnb description

Once potential guests click on your listing because your title grabbed their attention, the next thing they’ll check is your description (and your images of course, but we cover that in the next section). Make sure it’s just as compelling as your title to encourage them to book your place.

To craft an engaging and effective Airbnb description, use the following structure:

• Grab attention: Start with a compelling opening that highlights your property’s best feature and includes relevant keywords to improve search visibility.
• Showcase unique features: Mention your special amenities like a hot tub, rooftop terrace, or scenic views, using descriptive keywords guests search for.
• Describe the space: Provide a clear layout, including bedrooms, bathrooms, and special features, while incorporating terms that help guests quickly understand what your property offers.
• Highlight the location: Mention nearby attractions, restaurants, and transportation options, using location-based keywords that match guest searches.
• Set expectations: Clearly outline house rules, check-in details, and any restrictions to avoid surprises.
• End with a call-to-action: Encourage guests to book by emphasizing the unique experience they’ll have and reinforcing key selling points.

Let’s take a look at how optimizing your description can make a huge difference in your listing’s performance. 

Casago, a top-rated U.S. property management company, achieved a 66% increase in Airbnb listing views by consistently updating and optimizing their property descriptions. AutoRank’s AI-driven platform analyzed guest search trends, identified high-performing keywords, and aligned their listings with what travelers were actively looking for.

From March to August 2024, they outperformed the Airbnb competitive set in terms of page views, with a 94% improvement over six months. They went from being 34% below the competition to 67% above it.

Optimize your images for the season

Based on a study of more than 100,000 Airbnb listings, those with professional photos saw 28% more bookings and were able to charge 26% more per night. 

It is also crucial to switch up your photos to match the season. In summer, show off sunny outdoor spaces like patios or pools. In winter, highlight cozy spots like fireplaces or heated floors. Add some seasonal flair with flowers, decorations, or twinkling lights. Updating your images keeps things fresh and fun, helping you stand out and attract the right guests at the perfect time.

Read our blog with expert tips on how to create and upload the best images for your listing. 

Conclusion

Navigating peak season on Airbnb requires a blend of art and science: understanding market dynamics, leveraging data-driven insights, and strategically fine-tuning your operations. From optimizing your listings and pricing strategies to skillfully managing your minimum length of stay and cancellation policies, every detail matters when you’re striving to maximize profitability.

The key takeaway? Shift your focus from merely filling your calendar to actively managing your profitability. By prioritizing GOPPAR over simple occupancy and embracing a flexible, adaptive approach, you can not only weather the ever-changing landscape of peak season bookings but also thrive and outperform your competition.

Book a call with the AutoRank team, to find out how you can optimize your listings automatically and get the most out of your peak season.