Maintaining STR Revenue During Economic Downturns

Symple Leases
Aug 24
4 min read

In times of economic uncertainty, maintaining strong revenue from short‑term rentals (STRs) demands adaptability and strategic planning. Hosts managing listings on platforms like Airbnb face not only reduced demand but heightened competition. However, with the right approach—particularly leveraging dynamic pricing tools—it’s still possible to weather downturns and sustain profitability.

Maintaining STR revenue during economic downturns

1. Understand the Power of Dynamic Pricing

Dynamic pricing adjusts nightly rates in real time based on demand, seasonality, local events, and competitor listings. It’s a proven way to optimize both occupancy and revenue. Unlike static pricing, dynamic pricing ensures your property stays competitive and visible in search rankings on Airbnb.

Key benefits:

maximizes revenue during high-demand periods, while mitigating losses in slower times,
improves occupancy by aligning prices with market conditions, and
automates rate management, saving hosts time and effort.

Even during off-seasons or recession periods, these tools help avoid underpricing or overpricing mistakes – both of which can quickly eat into profits or reduce bookings.

2. Capitalize on Proven Dynamic Pricing Tools

Several tools elevate the STR pricing game by integrating real-time analytics and automation, for example:

PriceLabs – offers granular strategy settings, demand calendars, and market dashboards, with plans starting around $19.99/month or at 1% of booking revenue;
Beyond Pricing – leverages AI-driven insights and real-time data to anticipate demand shifts;
Wheelhouse – is user-friendly with adjustable pricing modes (e.g., aggressive, conservative) and excellent multi-platform integrations; and
Airbnb’s built-in Smart Pricing – is free to use but often skewed toward maximizing occupancy rather than revenue; many hosts opt for third-party tools for better ROI.

💡 Tip: Combine dynamic pricing tools with availability restrictions (e.g., minimum-stay settings) to further enhance profitability during low-demand periods.

3. Recession‑Proof Through Long- and Mid‑Term Rentals

When short-term demand drops, consider longer stays:

Extended or mid-term rentals (30+ nights) offer steadier income and lower turnover. Investors are increasingly adopting this hybrid model to offset economic pressures.
Monthly rentals stabilize cash flow and reduce vacancy risk during downturns. This approach is particularly effective in urban areas, near hospitals, universities, or business centers, where temporary housing is in high demand.

You may also want to target digital nomads or traveling professionals, both of whom increasingly rely on furnished stays of one to three months.

4. Enhance Guest Appeal and Value

Maintaining revenue isn't just about pricing – it’s also about offering value that outshines competitors. To do this:

invest in amenities that make an impact and some easy design upgrades (even modest enhancements, like better lighting, blackout curtains, or smart TVs, can drive higher nightly rates);
create a welcoming atmosphere through design, cleanliness, and small touches (local guides, snacks, coffee setups); and
cultivate positive guest reviews with outstanding service, which can influence booking behavior and acceptance rates (quality matters more than quantity).

💬 Host Tip: Adding a workspace, fast Wi-Fi, and contactless check-in can dramatically increase appeal for longer-stay guests.

A minimalist room with a smart TV and blackout blinds — Simple enhancements, such as blackout curtains and smart TVs, can boost appeal for long-term guests.

5. Streamline Operations With Automation

Efficiency is key during a downturn, especially if you're managing multiple listings.

Use tools like Hospitable, Guesty, or Your Porter to automate guest communication, streamline messaging, and handle team coordination.
Automate repetitive tasks like check-in instructions, review requests, and cleaner scheduling.
Embrace a property management system (PMS) or smart locks to reduce the need for manual labor or in-person contact.

🛠️ Bonus Tip: Integrate dynamic pricing tools with your PMS to fully automate rate adjustments across platforms like Airbnb, Vrbo, and Booking.com.

6. Monitor Market Trends & Competitor Pricing

Staying informed is vital.

Dynamic tools offer market dashboards, enabling insights into competitor pricing, booking patterns, and demand shifts.
Smart hosts adjust strategies based on local events, economic signals, and evolving guest behaviors (e.g., flexible cancellation policies; pet-friendly options).

You can also subscribe to STR trend reports, such as AirDNA’s monthly data briefs, to stay ahead of market movements in your region.

7. Case Study: Thriving Through a Downturn

Maya, a host in San Diego, saw bookings drop by 40% during the early 2023 slowdown. Instead of slashing rates, she implemented Wheelhouse with a conservative pricing strategy and pivoted to 30-night bookings.

She also upgraded her unit’s Wi-Fi and added a standing desk. Within 45 days, she had locked in a three-month reservation at above-average rates. Her approach—combining dynamic pricing, smart design, and guest targeting—helped her outperform competitors who relied solely on price cuts.

a woman working on her laptop outside — It's a good idea to target digital nomads who generally look for stays of a couple of months.

Conclusion

Economic downturns test the resilience of Airbnb and STR operators, but survival and success hinge on proactive adaptation. By harnessing dynamic pricing tools, offering value-added amenities, embracing longer-stay opportunities, and automating operations, hosts can not only preserve but potentially grow their revenue—even in lean times.