If your market has a real season — beach, ski, lake, desert, anywhere demand collapses for part of the year — most standard pricing advice quietly misleads you. It's written for markets with steady demand, and the arithmetic breaks when demand is concentrated.

The Problem With Annual Averages

Two properties both report 62% annual occupancy. One is in a steady urban market booking five nights most weeks all year. The other is a beach house at 92% for four months and 38% for eight.

Same headline number. Completely different businesses, requiring completely different pricing.

The seasonal property makes most of its money in a narrow window. Which means:

Find Your Actual Season Shape

Not what the tourism board says — what your bookings say. Pull twelve months of data and, for each month, record occupancy, ADR, and total revenue.

Then calculate what share of annual revenue each month produced. That percentage is the number to price against.

PatternPeak share of revenuePricing implication
Mild seasonalityTop 4 months = 40–50%Standard seasonal multipliers work fine
Strong seasonalityTop 4 months = 55–70%Peak pricing discipline is critical; off-season is about filling at any profitable rate
Extreme seasonalityTop 4 months = 70%+Consider closing or switching to mid-term rental in the off-season

If you're new and have no history, approximate it by checking comparable listings' availability calendars across different months. Dates that are blocked out months ahead in July and wide open in February tell you the shape.

Free Tool

Model This With Your Own Numbers

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Pricing the Peak

Peak season is where the year is won. Three rules:

Raise until you feel resistance

If your peak weeks book out four months in advance every year without fail, your peak rate is too low. That's not a sign of success, it's a sign you left money behind.

Raise peak rates 10–15% per year until you see peak nights still unbooked six to eight weeks out. That's the edge of what your market supports. Back off one increment and hold.

Protect your peak inventory

Set longer minimum stays in peak — typically 4 to 7 nights. In a seasonal market, guests expect it, and it eliminates the turnover costs and calendar gaps that short bookings create when every night is valuable.

Don't discount peak, ever

Last-minute discounting in peak season trains repeat guests to wait. If a peak night is empty two weeks out, that's information about your rate being slightly high for next year — not a reason to slash it this year.

Pricing the Off-Season

Here the goal changes entirely. In peak you're maximising rate. In off-season you're covering fixed costs.

Your fixed costs — mortgage, insurance, base utilities — continue whether anyone books or not. Every off-season night booked above your variable cost (cleaning, supplies, incremental utilities) contributes something toward those fixed costs. A night at $70 when variable cost is $45 contributes $25 that you don't get from an empty night.

That's why off-season discounting is correct and peak discounting isn't. Different economics entirely.

Off-season tactics that work

The Shoulder Seasons Are the Opportunity

Most hosts have a peak rate and an off rate and treat the weeks in between as one or the other. That's where the easy money sits.

Shoulder weeks — the fortnight either side of peak — often carry demand much closer to peak than to off-season, because travellers deliberately book them to avoid crowds and prices. Pricing them at off-season rates gives away margin on dates that would have sold higher.

Define your shoulder explicitly. Price it at 1.1–1.4× base rather than lumping it with the dead months.

The Personal-Use Question

If you use the property yourself, the seasonal math changes what that costs.

Blocking a week in your peak isn't blocking 1/52nd of your year. In a market where four months carry 65% of revenue, one peak week can represent 4–6% of annual income. Two peak weeks can exceed what the entire off-season contributes.

That's not an argument against using your own property. It's an argument for using it in shoulder season, when the cost is a fraction of the same week in peak, and the weather is often better anyway.

For the full framework this fits inside, see the dynamic pricing guide.