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When to raise rates and when to fill gaps

How to balance ADR, occupancy and net margin without damaging operations.

Revenue management5 min

Price is not decided in isolation

A high rate may look attractive, but if it creates hard-to-fill gaps or inefficient turnovers, real margin may fall.

The right decision combines demand, lead time, seasonality, operating cost and the owner’s goal.

When ADR should rise

Higher rates make sense when demand is strong, future occupancy is well positioned and the property has a clear value proposition.

Local events, high-pressure weekends and scarce comparable supply are common triggers.

When filling gaps is better

Short calendar gaps can become lost income if they are not adjusted early.

The adjustment still needs to cover cleaning, fees, wear and support.