A luxury property management company overseeing 15 high-end short-term rentals (STRs) in Aspen was facing major revenue inconsistencies. Despite offering premium properties in a sought-after location, their occupancy rate was stuck at just 40%, particularly during shoulder seasons.
The main issue? Static pricing. The company relied on fixed seasonal rates that failed to adjust to fluctuations in demand. This resulted in:
❌ Underpricing during peak seasons, leaving revenue on the table.
❌ Overpricing during low-demand periods, leading to high vacancy rates.
❌ Inconsistent revenue performance, making long-term financial planning difficult.
While competitors with AI-driven pricing tools were capturing market share, this STR brand was struggling to compete. The company needed a data-driven pricing strategy that could adapt to real-time market conditions and maximize revenue year-round.
-
AI-Driven Dynamic Pricing Implementation
-
Competitor Price Tracking & Market Insights
-
Last-Minute & Long-Stay Discount Automation
-
Targeted Social Media & Influencer Partnerships
To overcome these challenges, we implemented a multi-layered AI-powered pricing strategy designed to optimize nightly rates, increase bookings, and boost revenue.
1. AI-Driven Dynamic Pricing Implementation
We deployed an advanced pricing system that analyzed real-time market data and adjusted rates accordingly. The system factored in:
✔ Local demand surges (holidays, events, and seasonal travel trends).
✔ Competitor pricing benchmarks to remain competitive.
✔ Booking patterns and lead time analysis to optimize last-minute rates.
✔ Weather-based demand shifts (ski season vs. summer tourism in Aspen).
This allowed the company to charge premium rates during peak periods while offering strategic discounts when demand was lower, leading to higher overall occupancy and revenue.
2. Competitor Price Tracking & Market Insights
Using AI tools, we monitored competitor listings to ensure our client’s properties were always competitively priced. Key strategies included:
✔ Adjusting rates when competing properties dropped or raised their prices.
✔ Identifying pricing gaps in the market to capture untapped demand.
✔ Testing different price points to find the optimal rate for maximum bookings.
By analyzing competitors daily, we ensured our client’s listings never fell behind market trends and were always positioned to attract bookings.
3. Last-Minute & Long-Stay Discount Automation
One of the key revenue leaks for the company was unbooked nights close to check-in dates. To fix this, we introduced:
✔ AI-powered last-minute discounts that adjusted automatically when occupancy dropped below a certain threshold.
✔ Long-stay incentives, offering progressive discounts for bookings of 7+ nights to attract digital nomads and extended-stay travelers.
✔ Gap-filling pricing optimization to reduce one-night vacancies between bookings.
This strategy significantly reduced vacant nights, leading to a dramatic increase in occupancy rates.
"Before implementing AI-driven pricing, we were constantly guessing our rates, leading to high vacancy periods and inconsistent revenue. Now, we’re filling our properties year-round, maximizing earnings, and staying ahead of the competition—without spending hours adjusting prices manually."
Property Manager, Sarah Thompson
Within six months of implementing AI-powered dynamic pricing, the results were transformational:
✅ 90% occupancy rate, up from 40%, ensuring consistent revenue streams.
✅ $125K+ increase in annual revenue, driven by optimized pricing and higher occupancy.
✅ 32% higher ADR (Average Daily Rate) during peak seasons, allowing the company to capture maximum revenue when demand was highest.
✅ 80% reduction in last-minute vacant nights, thanks to automated price adjustments and strategic discounting.
✅ Higher guest satisfaction & repeat bookings, as better pricing made stays more accessible while maintaining profitability.
This case study demonstrates the transformational power of AI-driven pricing for luxury short-term rentals. By using real-time market data, competitor insights, and automated adjustments, the property management company optimized revenue, increased occupancy, and improved guest retention.
Going forward, they plan to expand their portfolio, knowing that dynamic pricing will continue to maximize performance across all properties.
chedule a free strategy call today and start leveraging AI-powered pricing for your Airbnb or STR business!
