Topic 4 of 8

Pricing and revenue

Two numbers decide whether an owner keeps you: what the unit earns, and what you take from it. These guides cover both, with euro examples and the platform fees in between.

2 guides Sourced and dated

In short

What this topic covers

A short-term rental’s revenue comes from two levers: the price of a booked night and the number of nights that get booked. Average daily rate (ADR) measures the first, occupancy the second, and RevPAR, revenue per available night, combines them. Raising prices can lower occupancy and still raise RevPAR, or the other way round, which is why a single number never tells you whether a unit is priced well.

Dynamic pricing tools move a base price up and down with season, weekday, demand, lead time and local events, and they let you set minimum stays, last-minute discounts and rules for the gap nights between bookings. They save time, but they follow the settings you give them, so the settings still need judgement.

Your own price as a manager is usually a commission, and the amount it is calculated on matters as much as the percentage. Twenty per cent of gross booking value is not the same as twenty per cent of revenue after platform fees, VAT on those fees and cleaning. Agree the base in writing and show the owner the maths. The guides in this topic cover what managers charge and what is left for each side, and how to set up dynamic pricing step by step. The revenue calculator lets you try the commission maths with your own numbers.

If you are the owner, read the guides in this order: what managers charge, then a projection you can check, the clauses to discuss before you sign and what damage cover and insurance do.

Terms and tools

Terms you’ll meet in this topic

Tool

Revenue calculator

Work out what one unit earns in a month and how the money splits between owner, co-host and platform, with the fee and VAT included.

About HostPro Academy

The team behind this guide

These guides are written by the team behind HostPro Academy, a training programme for building a short-term rental management business. The pricing and revenue part of that programme is covered in level 8 and lesson 2.4.