Why Chasing Higher Rates Can Hurt Your Bookings: The Power of Property Ranking
Hello, I’m Jason, a Business Journalist at Bukit Vista, and today we’re diving into a critical topic from the Bali Business Review that many property owners overlook—why your focus shouldn’t always be on pushing prices higher, but rather on building and maintaining a solid property ranking.
With insights from our latest video, “Why Chasing High Rates Can Kill Your Bookings | Property Ranking Explained,” we explore a strategy that may seem counterintuitive at first: prioritizing property ranking over immediate rate increases. Let’s uncover how consistent guest satisfaction and visibility can drive long-term pricing power, build trust, and ultimately secure higher profits.
The Misconception About High Prices
It’s tempting to continually raise your nightly rates, especially if demand is high or surrounding properties are doing the same. However, many hosts learn the hard way that chasing premium prices without the foundation of trust—demonstrated through a high property ranking—can lead to plummeting occupancy, negative reviews, and lost ground on booking platforms.
What Is a Property Ranking and Why It Matters
Your property ranking is essentially your reputation scorecard across platforms like Airbnb, Booking.com, or Agoda. It’s driven by multiple factors:
- Guest reviews and ratings
- Booking volume and consistency
- Responsiveness and host performance
- Cancellations and availability
When your property consistently receives strong reviews and performs well on these metrics, platforms reward you with visibility. That visibility translates into more eyeballs—and ultimately, more bookings.
Trust Is the True Currency
Online guests are cautious. They gravitate toward hospitality businesses that have social proof—in the form of reviews, Superhost badges, or consistent booking records. A strong ranking signals reliability, safety, and quality. This trust encourages guests to pay more without second-guessing their choice.
Earn the Right to Raise Prices
The video delivers a key takeaway: ranking gives you pricing power. Establish a highly-ranked property first, and only then consider incrementally raising prices. When your base of satisfied guests and high visibility is solid, platform algorithms continue recommending you—even at higher price points—because you’ve earned guest trust.
This Strategy Pays Off in the Long Run
Instead of focusing on short-term gains, this approach sets you up for sustained profitability. Here’s why:
- Higher Occupancy: A trusted, ranked property fills up faster.
- Better Reviews: Guests walk in with aligned expectations.
- Long-Term Revenue Growth: As your trust builds, so can your rates—without sacrificing volume.
Final Thoughts
If you’re a host or property manager looking to improve your bookings and revenue, the message is clear: build your foundation with a high-ranking, trusted property before pursuing higher prices. Doing so ensures resilient demand, satisfied guests, and lasting profitability.
Want to see real-life examples and a full strategic breakdown? Watch the video below where Jing Cho Yang explains the psychology behind the strategy and how you can apply it to any hospitality business in Bali or beyond.
Click to watch now and let us know your thoughts in the comments—we’d love to hear your strategies and experiences.
Jason, Business Journalist at Bukit Vista
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