Revenue Potential is a metric we apply to short-term rental listings. Our algorithm analyzes the blocked days on a property’s calendar over the past 12 months and, using the property’s reservation history, estimates the additional revenue those days could have generated. It factors in occupancy rate, seasonality, and pricing, while also drawing in the historical performance of comparable nearby properties.
Since these comparable properties often have varying numbers of available days, we treat them as if they had been available every day over the past year. This allows for a fair comparison and a more accurate revenue estimate.
In the example above, the listing was available for 246 out of 365 days, earning $117,900 in revenue. By projecting its past performance across a full year and factoring in the performance of nearby comparable listings, we calculate a revenue potential of $126,200.