Driving Towards FIRE,  Our Smoky Mountain Cabin

Pricing & Occupancy Rates

$35,000 through 8 months of bookings…

⬆️ 49.22% total revenue compared to 2021

⬇️ 11.11% Avg. nightly rate compared to 2021.

⬆️ 65% occupancy rate compared to 2021.

Two things contribute to revenue:

1. Pricing.

2. Occupancy Rate.

But the two often don’t have to be “in sync”. Here’s what I mean, in 2021…our average nightly rate was at its highest $254.24 a night, but our occupancy rate was just below 50% at 49.2% & we had our best revenue grossing year since we started in early 2018. We closed 2021 at $48,151. Furthermore, this was also accomplished with NO BOOKINGS for July & August due to losing our original cleaning team! So many people fall victim to believing that occupancy rates are the key to achieving a high grossing revenue. In my opinion, you can succeed with the right pricing more than occupancy rate. Even though we’ve had to drop our nightly rates for 2022 as a result of inflation and costs of living to attract travelers, we’ve seen a massive increase to our occupancy rate. With length of stay per guest averaging close to 5 nights per booking. Compared to last year, we remained competitive & to make up for lost revenue in July & August we increased rates but saw a dip in occupancy rates.

Don’t let anyone tell you that the only way to succeed is through occupancy rates. Competitive pricing, offering guests specials, & ‘those you know’ marketing are huge avenues that dictate your success in the STR market.

For 2022, we are on track to smash last year’s total revenue…

With 4 months of bookings yet to be filled in the 4th quarter, we plan to maintain our lower pricing by focusing on occupancy rates this year. We’re on track for >70% occupancy rates for the remainder of the year and this should land our 2022 Gross Revenue close to $55,000.

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