STR Pricing Glossary — Vacation Rental Terms Explained | HostProfit.ai
ADR (Average Daily Rate)
The average revenue earned per booked night over a given period. Calculated by dividing total room revenue by total nights sold. A property earning $3,000 from 20 booked nights has an ADR of $150.
RevPAR (Revenue Per Available Room)
A key metric combining occupancy and rate performance. Calculated as ADR × Occupancy Rate, or total revenue ÷ total available nights. RevPAR captures overall revenue efficiency better than ADR or occupancy alone.
Occupancy Rate
The percentage of available nights that are booked over a given period. A property available 30 nights with 21 bookings has a 70% occupancy rate. Higher isn't always better — 100% occupancy often means you're priced too low.
Dynamic Pricing
The practice of adjusting nightly rates based on real-time market conditions including demand, competition, seasonality, and events. Most successful STR operators use some form of dynamic pricing.
Base Price
The default nightly rate before any dynamic adjustments. Your base price should reflect your property's fair market value compared to similar listings in your area.
Minimum Stay
The fewest consecutive nights a guest must book. Strategic minimum stays (e.g., 2-night weekend minimums, 3-night holiday minimums) reduce turnover costs while maximizing revenue.
Gap Night
An isolated unbooked night between two reservations that's difficult to fill. Gap nights represent lost revenue. Orphan night discounts or minimum stay adjustments help fill them.
Lead Time
The number of days between when a booking is made and the check-in date. Long lead times (30+ days) indicate strong demand. Short lead times suggest last-minute travelers.
Booking Window
The period during which guests typically book for a given date. Understanding your booking window helps you time price increases and last-minute discounts effectively.
Comp Set (Competitive Set)
The group of similar properties in your area that compete for the same guests. Your comp set shares similar size, amenities, location, and quality level.
Revenue Management
The strategic practice of optimizing pricing, inventory, and distribution to maximize revenue. In STR, this includes dynamic pricing, listing optimization, and demand forecasting.
Seasonality
Predictable demand fluctuations based on time of year. Peak seasons command 30-100% higher rates, while off-seasons may require aggressive pricing or longer minimum stays.
Event-Based Pricing
Adjusting rates for known demand drivers like concerts, festivals, conferences, sporting events, and holidays. Missing event-based pricing can cost $200-$500 per event.
Listing Score
A composite rating of your listing's quality across multiple factors including photos, title, description, amenities, reviews, and pricing competitiveness. Higher scores correlate with better search placement and booking rates.
Smart Pricing (Airbnb)
Airbnb's built-in dynamic pricing algorithm. It optimizes for Airbnb's marketplace goals (filling inventory) rather than host revenue, frequently underpricing high-demand nights by $30-$80.
PMS (Property Management System)
Software that centralizes operations for vacation rental managers — handling bookings, guest communication, cleaning schedules, and channel management across platforms.
Channel Manager
Software that synchronizes listing availability and pricing across multiple booking platforms (Airbnb, VRBO, Booking.com) to prevent double bookings and maintain consistent rates.
Turnover Cost
The total cost of preparing a property between guests, including cleaning, laundry, restocking supplies, and inspection. Typical turnover costs range from $75-$200 per changeover.
Length of Stay (LOS) Discount
A price reduction offered for longer bookings. Common discounts: 10-15% for weekly stays, 20-30% for monthly stays. Reduces turnover costs and guarantees income.
Booking Velocity
The rate at which your listing receives new bookings over time. Increasing booking velocity typically indicates strong demand and may support price increases.
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