The Pricing Paradox: Why Your Short-Term Rental Pricing Isn’t About the Nightly Rate

Taylor Jordan
October 22, 2025
2
min

The Myth Most Property Owners Still Believe

Many new short-term rental (STR) owners think success comes down to one question: “How much should I charge per night?”

But in reality, the nightly rate is just one piece of the puzzle. The real key to maximizing returns is dynamic pricing — a strategy that adapts to changing demand, seasonality, and guest behavior.

At Sora Stays, we’ve seen this firsthand across our properties in Muskoka, Ontario, and Texas, where the right pricing adjustments can make the difference between an average year and an exceptional one.

Why Static Pricing Doesn’t Work

Setting one flat rate — and leaving it untouched — is one of the most common mistakes STR owners make.

Guests don’t book based on what you think your property is worth; they book based on timing, competition, and value perception.

If your rate is too high during low-demand periods, your calendar sits empty. If it’s too low during peak weekends, you miss out on thousands in lost revenue.

That’s where data-driven pricing comes in.

What Dynamic Pricing Looks Like

Dynamic pricing means your rates shift strategically — not randomly — to match demand trends and booking patterns.

At Sora Stays, our team reviews market data weekly, adjusting rates based on:

  • Local events and seasonal demand in Muskoka or Texas
  • Occupancy trends across comparable listings
  • Lead time between booking and check-in
  • Review performance and guest booking behavior

This allows us to balance occupancy and nightly rate, so owners earn more over time — not just on peak weekends.

Real Results: Muskoka in the Off-Season

One luxury property we manage in Muskoka outperformed similar cottages, even in the slower fall months.

While others lowered rates out of panic or left their calendars empty, we analyzed booking trends and set flexible pricing blocks — slightly lower midweek, higher on weekends.

The result?
✅ Higher occupancy during shoulder season
✅ Steadier monthly revenue
✅ Stronger guest reviews due to increased bookings and consistent service

That’s the power of a dynamic pricing system.

For Realtors and Investors: Why This Matters

If you’re advising clients on STR potential, pricing strategy is where profit starts.

Understanding dynamic pricing allows you to:

  • Position listings with realistic income projections
  • Help clients see beyond seasonal assumptions
  • Strengthen your credibility with investor-minded buyers

An STR priced strategically performs better year-round — making your listings more appealing and your referrals more valuable.

The Takeaway: STRs Succeed by Design

Short-term rentals don’t win because of luck or location — they win because of strategy.

Dynamic pricing isn’t about charging more; it’s about knowing when to adjust.

When you treat your property like a business — with systems, data, and attention to detail — pricing becomes one of your most powerful levers for consistent returns.

At Sora Stays, we apply this approach across every property we manage — balancing hospitality, data, and design to deliver real results.

📊 Want to Know What Your Property Could Earn?

We offer custom revenue projections for property owners, realtors, and investors in Texas and Muskoka.

Whether you’re exploring a new investment or rethinking how to manage your current property, our insights can help you see what’s truly possible.

👉 Contact us today to request your free custom projection.

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