3 Airbnb Revenue Management Mistakes to Avoid in 2025

**Jasper Ribbers:**Welcome back to Get Paid For Your Pad. Today, I'm breaking down the three biggest mistakes short-term rental operators make with revenue management, and how to avoid them in 2025.

If you want better results this year, even in a flat or declining market, this episode is for you.

Also, stick around until the end. I'll be sharing a free training you can sign up for that walks you through everything we're learning across 30+ portfolios.

**Context:**We manage revenue for operators doing $1M+ per year in STR income. That includes 30 portfolios across the U.S., Canada, Europe, and Australia. With hundreds of listings under management, we see clear patterns, especially when onboarding new clients.

Mistake #1: Pricing Too High in Low SeasonDuring the off-season, many hosts set unrealistic prices and hope for last-minute bookings. But in most markets, demand simply isn't strong enough to support that strategy.

Instead:

• Set a goal for what good performance looks like based on last year's revenue, market comps, and your unit type.
• Look at market data: what does a top 20% one-bedroom earn in January? That's your target.
• Use monthly or extended-stay discounts to reach your revenue goal in advance.

Key takeaway: The low season is not the time to chase high ADRs. It's about securing bookings early and keeping listings active.

**Why It Matters:**Even low-paying bookings have long-term value:

• They boost your listing's momentum in Airbnb search.
• They keep your cleaners engaged.
• They add fresh reviews to your listing.
• Guests who stay during off-season might return during summer, or refer others.

In Wisconsin, for example, one of our portfolios generated $22K more in revenue during January simply by pricing correctly. That's $22K more bookings, reviews, and search visibility heading into summer.

**Mistake #2: Underpricing High Season (Pacing Too Fast)**We often see operators price too low in peak season, just to get early bookings. But when you book up too early, you leave a lot of money on the table.

Use pacing tools (like PriceLabs' Portfolio Analytics) to compare your occupancy and rates against the market. If you're pacing ahead too early, your prices are too low.

Real example:

• A unit in Washington State had $71K booked for summer by February last year.
• This year, it only has $26K booked, but at a much higher ADR.
• That means we're on track to earn $100K+ this summer from the same unit, a 33% improvement.

Booking slower at higher rates beats early occupancy at low prices.

Mistake #3: Ignoring Peak Demand Events in AdvanceThis is the costliest mistake we see: not setting high enough rates for known peak events (like graduations, holidays, or major sports weekends).

Example: A university town in the Midwest

• One unit got booked for graduation weekend at $1,000/night.
• Two others, same specs, got booked at $399 and $379 because pricing wasn't set in time.

Solution:

• Use date-specific overrides well in advance.
• Set rates based on the highest historical ADRs for that period.
• Add a max price cap if needed to avoid going too far.

Tip: Even if the calendar isn't open that far yet, set your override rules early. Protect your future revenue from early bookings at low rates.

Bonus Tip: Use Reporting to Track ADR Trends: With tools like PriceLabs, you can compare booked ADRs now vs. same time last year vs. final ADRs. This helps you catch underpricing before it's too late.

You'll learn:

• How to identify and protect peak events
• How to pace and price across seasons
• What the top 1% STR operators are doing right now across 1,000+ listings

**Final Notes:**If you have revenue management questions, email me at jasper@freewyld.com. I use real listener questions to guide these episodes.

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Until next time!