Last month, I analyzed booking data from 50+ STR operators who thought their pricing was "optimized."
The result was shocking: 89% were leaving money on the table from premium guests.
Here are the five warning signs that you're underpricing your highest-value visitors—and exactly what to do about it.
Quick Self-Assessment
Count how many of these signs apply to your property:
3+ checked? You're likely underpricing premium segments by 40-70%.
Warning Sign #1: International Guests Don't Negotiate
What to look for: Guests from Singapore, Hong Kong, Australia, or the UK book immediately without asking for discounts.
Why this matters: These travelers have higher purchasing power and expect premium pricing. If they're not even trying to negotiate, you're priced too low.
Real example: A Singapore executive told me he was "pleasantly surprised" by my $280/night rate. He expected to pay $400-500 for that quality. I was leaving $120-220 per night on the table.
The fix: Test 20-30% higher rates for international IP addresses. Most won't blink.
Warning Sign #2: Premium Device Users Book Instantly
What to look for: Guests browsing on MacBook Pros, iPhone Pro Max, or high-end devices make fast booking decisions.
Why this matters: Device choice correlates strongly with income. iPhone Pro Max users have 69% higher price tolerance than Android users.
The insight: If premium device users aren't hesitating on price, you're not capturing their willingness to pay.
Warning Sign #3: Business Travelers Book Repeatedly
What to look for: Guests who book Monday-Thursday, arrive at odd hours, expense their stays, or mention work travel.
Why this matters: Business travelers have the highest price insensitivity. They're optimizing for convenience, not cost.
Warning Sign #4: Guests Comment on "Value"
What to look for: Reviews mentioning "great value," "affordable luxury," or "reasonable rates for the quality."
Why this matters: These are polite ways of saying "I expected to pay more." When guests are pleasantly surprised by low prices, you're leaving money on the table.
The reality check: Luxury guests don't want "great value"—they want great experience. Price accordingly.
Warning Sign #5: Last-Minute Bookings at Full Price
What to look for: Guests booking within 7 days without asking for last-minute discounts.
Why this matters: Last-minute bookings indicate high urgency and low price sensitivity. These guests will pay significant premiums for availability.
The opportunity: Implement surge pricing for last-minute bookings. 40-60% premiums are common and accepted.
The Solution: Airline Pricing Model
If you identified with 3+ warning signs, you're ready for behavioral pricing. Instead of one-size-fits-all rates, charge based on guest willingness to pay:
Behavioral Pricing in Action:
Same property, same dates. Right guest sees right price.
This isn't gouging—it's market efficiency. Premium guests get the service they expect at prices they're comfortable with. Price-sensitive guests still get access at standard rates.
Your Next Steps
- Audit your booking patterns - Look for the five warning signs in your data
- Calculate your opportunity - See how much revenue you're missing
- Test behavioral pricing - Start with geographic and device-based rate adjustments
- Monitor guest response - Premium pricing typically improves satisfaction
The airlines figured this out decades ago. Now it's time for STRs to catch up.
Ready to Stop Underpricing Premium Guests?
Our revenue analysis shows exactly how much you're missing from current booking patterns.
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Read Strategy →About the Author
Leon Freier
CEO & Founder, ApexAlpha
German entrepreneur who moved to Vietnam with a one-way ticket and built DaNangBeachVillas.com into the premier luxury villa operator in Da Nang. Experienced first-hand how existing pricing tools fail by pricing calendars instead of guests, leading to the creation of ApexAlpha to solve his own business needs.