Before Lowering Your Price, There Are a Few Things You Should Check First
“Bookings have been declining recently...” “Vacancies are increasing...” “Even after lowering prices, reservations still aren't coming in...” Many vacation rental owners face these challenges. However, in reality, the cause of vacancies is not simply a matter of location. In recent years, the number of vacation rentals has increased significantly, and simply listing a property on booking platforms is no longer enough to generate consistent reservations. So, what should owners of properties with high vacancy rates review and improve? In this article, based on what MOTO SMART has observed through real-world operational experience,
While operating a vacation rental or ryokan,
- Bookings have decreased recently.
- 「The number of vacant rooms has been increasing」
- Even after lowering room rates, the rooms remain unfilled.
- Why is my property the only one still vacant when nearby properties are fully booked?
You're not alone—many property owners are facing the same issues.
Start by Reviewing These 3 Things
We'll walk you through them in a clear and easy-to-understand way.
① Do the photos differ too much from the actual room?
First, the very first thing you should review is your property photos. On platforms such as Airbnb and Booking.com, guests often make their initial booking decision based on what they see in the photos. That's why bright, visually appealing, and professionally presented images are extremely important.
However, if the photos create expectations that differ significantly from reality, the result can be negative reviews. For example: The property may appear spacious in the photos but feel much smaller in person. The property may look modern and well-maintained online but seem older upon arrival. When there is a noticeable gap between expectations and reality, guests are far more likely to feel disappointed and leave unfavorable feedback.
What matters is not overly enhanced photos, but photos that accurately communicate the guest experience. The real goal is to help guests form an accurate expectation of what their stay will actually be like. When guests arrive and think, “It looks exactly like the photos,” or even, “It’s better than I expected,” positive reviews tend to follow naturally.
② Have you been paying attention to what guests are saying in their reviews?
The next important factor is reviews. In today's vacation rental market, more and more guests make booking decisions based on reviews rather than price alone. Negative reviews, in particular, often contain valuable insights and opportunities for improvement.
For example,
- It wasn't clear how to check in.
- The Wi-Fi is weak.
- The cleaning is not thorough enough.
- The instructions were unclear and insufficient.
- The room did not match the photos shown online.
When these small frustrations begin to accumulate, booking performance will inevitably decline.
Highly rated properties tend to share one important characteristic.
That characteristic is clarity and ease of use for guests.
For example, properties that provide clear instructions for check-in, directions to the accommodation, Wi-Fi access, and waste disposal procedures are far more likely to receive positive reviews and higher guest satisfaction scores.
③Don't just lower your price—create value that makes guests choose you.
When vacancies start to increase, many property owners immediately think about lowering their prices. However, simply reducing rates often leads to lower profits and may not address the root cause of the problem. In today's market, being "cheap" alone is no longer enough to attract bookings.
Before making a reservation, guests pay close attention to:
- A clean and well-maintained space
- Guest Feedback
- Room Photos
- A Safe and Reliable Stay
- Fast Guest Support
- A Welcoming Room Ambience
These are all part of the overall guest experience. The most important step in reducing vacancies is to take a closer look at your operations. Running a vacation rental is about much more than simply renting out a room. Small improvements and consistent attention to detail can make a significant difference in your booking rate.
MOTO SMART's “Self-Management 2.0”
At MOTO SMART, we advocate a new operational approach called “Self-Management 2.0”, rather than the traditional fully outsourced management model. One of the key benefits of Self-Management 2.0 is that property owners gain direct visibility into revenue performance, guest reviews, operational issues, and customer feedback. This transparency makes it easier to identify opportunities for improvement, reduce vacancies, enhance guest satisfaction, and improve review scores. Over time, these improvements contribute to higher guest retention, more repeat bookings, and ultimately stronger profitability.
In addition, owners gain a deeper understanding of why bookings are generated and why vacancies occur. Finally, it is important to remember that location alone is not the sole reason a property experiences low occupancy.
First, it's important to review these three key areas: (1) Photos, (2) Reviews, and (3) Operational Quality. Running a vacation rental or inn is not simply a real estate investment—it's a business. MOTO SMART supports owners through “Self-Management 2.0,” helping them truly understand their operations and improve profitability.
From the Era of Outsourced Management to the Era of Self-Management Support. Traditionally, the vacation rental, ryokan, and hotel industries have relied on a model where all operations are outsourced to a management company. This is what we call the era of “Management 1.0.” However, this model has its limitations.
