Occupancy-Based Adjustment is a customization that enables our system to analyze the horizontal occupancy of your listing and make appropriate rate adjustments. This approach considers both market conditions and your property’s performance when providing pricing recommendations.

Benefits of Occupancy Based Adjustments

This feature is especially beneficial in the following scenarios:

• Frequent Base Price Adjustments:
  
• If you often change your base price based on occupancy trends, this feature can help automate the process. For example, if your listing was performing well but suddenly sees a drop in bookings, the system can adjust rates accordingly.
  
• Uneven Bookings Across Similar Listings:
  
• If you have two similar listings with the same base price, but one is getting booked while the other isn’t (due to factors like reviews or OTA ranking), this tool helps create a more balanced distribution of bookings.
  
• New Listings Without Bookings:
  
• If you are launching a new listing and want to offer lower prices for the first few days to attract bookings, this customization allows you to gradually increase the price as bookings come in.

Regardless of your situation, Occupancy-Based Adjustment gives you more control over last-minute and far-out pricing by applying price adjustments based on the occupancy rate of your listing within different time windows.

How Does It Work?

By default, Occupancy Based Adjustments allows your listing's price to automatically decrease when your occupancy is low and automatically increase when your occupancy is high, maximizing your revenue. You can check the table below for the adjustments:

• This means that:
  
• If a listing has 3 booked nights out of 15, the occupancy rate is 20% (3/15 * 100%).
  
• A 15% discount is applied to the remaining available days.
  
• If another 3-night booking is received, the occupancy rate increases to 40%, and the discount is reduced to 5%.
  
• As occupancy increases, discounts decrease—ensuring optimal pricing as demand shifts.

How to Set Up Occupancy-Based Adjustments in PriceLabs

1. On the Pricing Dashboard, click Review Prices on the desired listing, then click Edit under Customizations.
2. Under All Customizations, select Occupancy-Based Adjustments and turn on the toggle.
   
1. If the toggle is off, the Default Profile is applied.
   
3. Select a profile and click Finish Profile and Save Changes
   
   

Available Profiles

1. Default – Uses our standard settings (as seen in the screenshot above). You can use it as-is or modify it to better suit your needs.
   
2. Aggressive – Applies higher discounts and premiums than the default settings, with discounts going up to 30% in certain day ranges. Many users have tested this and reported great results.
3. Step Last-Minute Discount – Allows you to set a step-wise last-minute discount instead of a continuous one.
4. Far-Out Premium – Designed to increase prices for dates far in advance, helping to maximize revenue from early bookings.
5. Super Aggressive Discounting – A more extreme version of the Aggressive profile, applying higher discounts. Ideal for markets with very low occupancy rates.
6. Custom – Any of the above profiles can be modified and saved as a custom option. If you edit and save one of the existing templates, it will be marked as "Custom."

Customization Tips

• Want to add a far-out premium to an existing profile? Use the "Add Column" feature to include additional date ranges.
  
• Ensure that:
  
• Each day range is smaller than the preceding one (e.g., 0<15, 16<30, etc.).
  
• Each occupancy percentage in the left column is smaller than the preceding ones.
  
• Adjustments stay within -50% to +500% of base pricing.

Turning Off Occupancy-Based Adjustments

If you don’t want automatic price adjustments based on occupancy, select the “No Occupancy-Based Adjustment” option from the drop-down menu. This ensures that discounts and premiums will not be applied, even by default.

Important Notes

• Occupancy is calculated at the listing level, not across your entire portfolio.
  
• Adjustments stack with other pricing rules (seasonality, day of the week, event/holiday factors, etc.).
  
• Prices will never go below your minimum price or above your maximum price.
  
• If you apply a fixed price override, those prices take priority, and occupancy-based adjustments will not apply.
  
• All values in the table are adjustable—you can set your own day ranges and % adjustments based on your targets.
  
• Blocked dates are treated as booked when calculating occupancy except for these PMS/Channel Managers:
  
• 365Villas, Avantio, Beds24, BookingSync, Brightside, Direct, Elina PMS, Eviivo, FantasticStay, Guesty, Hospitable, Hostfully, Hostify, Hostaway, iGMS, Kigo, Lodgix, Lodgify, KrossBooking, LMPM, MyVR, Octorate, OwnerRez, Rentals United, Rentlio, ResHarmonics, Smoobu, Stays, Streamline, SuperControl, Track, Uplisting, VRBO, VReasy.

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