STR Revenue Management Isn’t Optional, It’s Everything

Eric Moeller:
Welcome back to Get Paid For Your Pad. This is Eric Moeller, and today I’m here with the OG himself, Mr. Jasper Ribbers. Jasper, welcome back to the podcast. Is it weird being interviewed on your own show?

Jasper Ribbers:
Yeah, a little bit. I haven’t been as involved in the podcast lately because the revenue management department has grown so fast. We’re now managing over 1,600 listings, and it takes a lot of time. For about 10 or 11 years, I was very consistent with the podcast, but I’m glad the team has stepped in. The good news is I’ll be hosting again soon since we’ve hired more team members and I’m freeing up time to come back.

Eric:
That’s exciting. We’re also launching a new weekly revenue-focused podcast every Monday, where you’ll either interview people about their business or share insights from managing these 1,600 listings. And of course, Kaye and I will continue with our Friday show. But today, I want to dive into revenue management. You’ve been building a revenue management company for about 15 or 16 months now. What have you learned?

Jasper:
One big thing is that pricing tools like PriceLabs can be overwhelming. They have hundreds of settings, but most of them don’t really move the needle. What we’ve learned is that focusing on a few core concepts drives the best results. A simple, well-executed strategy often beats a complex one.

Eric:
Why do you think revenue management is so important right now for growing operators?

Jasper:
Because most operators treat it as an afterthought. They focus on guest check-ins, cleaning, and maintenance, and only look at pricing when they have time left. The problem is that revenue management deserves the same attention as operations and marketing. There’s a lot of invisible revenue being left behind. Operators think they’re doing well because they’re slightly above market average, but they don’t realize how much money they’re missing.

Eric:
We see that all the time. Many operators think revenue management just means having a pricing tool. I recently spoke with an owner who proudly said he uses PriceLabs. But when we audited his account, we found outdated settings that were costing him $200,000 a year. Another portfolio we looked at was leaving $2 million on the table.

Jasper:
Exactly. The biggest mistake is not monitoring pacing. Pacing means looking at forward occupancy compared to your market or comp set. For example, if people start booking Christmas in July and you’re not getting those bookings, that’s a strong signal your pricing is too high. Most operators don’t track this, and they end up relying on last-minute discounts, which kills revenue.

Eric:
So mistake number one is thinking a pricing tool is enough. Mistake number two is ignoring pacing. What else are you seeing?

Jasper:
Another area is availability settings and policies. Revenue management isn’t just about price. It’s also minimum night stays, cancellation policies, and booking restrictions. Many operators make their settings too restrictive, like requiring four or five nights far in advance even when the market average stay is only two nights. That eliminates most of the demand. The same happens with strict cancellation policies. Operators feel like they’re winning when someone cancels and they keep the money, but they don’t see all the bookings they lose because guests avoid strict listings.

Eric:
That’s powerful. Can you share a case study where implementing these strategies made a big difference?

Jasper:
Yes. We worked with a client who relied heavily on last-minute bookings because their pricing was too high far out. Once we took over, their booked revenue jumped from $20K per week to as high as $68K. Since then, they’ve been consistently booking 25–40% more revenue each month. At first, they were skeptical, but within weeks they saw the difference and even sent me a message saying they couldn’t believe the results.

Eric:
That’s amazing. So across the same portfolio, just by changing revenue strategy, they added over 25% more revenue.

Jasper:
Yes. It shows that even if operators feel they’re doing well, there’s usually a lot more potential when they focus on pacing and simplify their strategy.

Eric:
What advice would you give to operators, whether they have one unit or 200?

Jasper:
Two things:

1. Spend 15 to 30 minutes every day reviewing your bookings. Each booking has information about why it happened, when it happened, and what you can learn from it.

2. Start monitoring your pacing. Compare your forward occupancy to your market or comp set and ask why you’re ahead or behind. Sometimes it’s pricing, sometimes it’s marketing, but you won’t know unless you track it.

Eric:
That’s great advice. And I’d add that if you don’t enjoy numbers or spreadsheets, hire someone who does. CEOs don’t have to be in the weeds, but they need someone in that revenue seat. If you’re doing $1M or more in bookings and don’t have a revenue manager, you’re leaving serious money on the table.

Jasper:
Exactly. For small portfolios, you can manage it yourself. But the larger the portfolio, the harder it is to do as a founder. That’s why we see the biggest upside with larger companies, because they usually have the most untapped revenue.

Eric:
Well said. For everyone listening, if you’re managing $1M or more in bookings, apply for a revenue audit at freewyldfoundry.com. We’ll analyze your strategy and show you exactly how much you’re leaving behind. And if you’re heading to VRMA in October, join our workshop on pacing. We’ll dive deep and help you implement these strategies live.

Jasper:
Thanks for tuning in. We’ll see you next time.

Eric:
Adios.