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PressWhat's the Right STR Pricing Model? I've Asked Hundreds of Hosts
Published: July 24, 2026
Last updated: September 4, 2026
By
Jordon Myers
| Pricing model | How it works | Best for | Main limitation |
|---|---|---|---|
| Value-based pricing | Rates reflect what your property is worth to guests (amenities, design, reviews) | Standout listings with premium features | Needs market data to validate the premium |
| Dynamic pricing | Rates move with demand, seasonality, lead time, and events | Most hosts and property managers | Unsustainable by hand; needs a tool like AirDNA Adapt |
| Psychological pricing | Charm pricing ($99 vs. $100), urgency offers, round numbers for luxury | Boosting conversion at the margin | A tactic, not a complete model |
| Cost-plus pricing | Total costs plus a target profit margin set the nightly rate | New hosts setting a price floor | Ignores demand and seasonality |
| Discounts and promotions | Targeted price drops fill gaps and reward longer stays | Filling last-minute gaps and slow seasons | Erodes margins when used without a reason |
ARTICLE SUMMARY
Dynamic pricing wins for most short-term rentals: rates that move with demand, seasonality, and lead time outperform flat rates. After talking to hundreds of hosts while building AirDNA Adapt, here's how I'd compare the five most common STR pricing models and choose one.
Jordon Myers
AirDNA Senior Product Manager
Jordon Myers is a Senior Product Manager at AirDNA, where he leads AirDNA Adapt, the company’s dynamic pricing and revenue management tool. He works at the intersection of AirDNA’s short-term rental data and the day-to-day pricing decisions of hosts and property managers.