How to Boost Your Vacation Rental Revenue by Learning from Top Competitors

I keep hearing "the Smokies market is oversaturated".

If you feel this way too, you’re not alone. Many vacation rental owners have seen their revenue drop below expectations, leaving them frustrated and unsure of how to compete. While I agree that the market is crowded, it’s still possible for hosts to thrive. Believe it or not, some properties are excelling—even in competitive markets like the Smokies.

What’s their secret? They analyze their competitors and apply strategic improvements to their own listings.

If you’re ready to turn things around and maximize your property’s earning potential, this guide will walk you through the step-by-step process. It takes time, patience, and a little effort, but the rewards are worth it. Here’s how you can do it.

Step 1: Use Data to Identify Top Competitors

Start by identifying properties near yours that are bringing in more revenue. You can use tools like PriceLab's Revenue Estimator to get a clear picture of where you stand versus high-earning competitors. This tool allows you to see what similar properties are earning in your market.

Pro Tips for Using the Revenue Estimator Effectively:

• Remove cleaning fees from your revenue numbers to ensure an apples-to-apples comparison.

• Apply filters carefully. Over-filtering can exclude competitive properties.

• Filters I recommend:

  • Performance: Filter properties with 20+ reviews in the midscale or upscale segment.
  • Avoid filtering by amenities. Many hosts don’t use Airbnb’s amenity features properly, meaning you could accidentally exclude relevant listings.
  • Use the Advanced Filters to view individual listings. Sort by revenue (highest to lowest), and then examine individual listings with similar attributes to yours.

Once comparisons are complete, you’ll start to see patterns in what sets the top earners apart.

Step 2: Assess Competitor Features and Compare

Select 7–10 properties in your area that are performing well and create an evaluation spreadsheet. Now, compare your property side by side with these top competitors. I recommend using a scale of 1-10 for each feature.

Key Features to Grade:

• Location and proximity to attractions.

• Views of the mountains, valley, or river.

• Amenities (I use a different scale for amenities to reduce the amount of weight each has on the total score. Rate each amenity from 1 to 3, then tally the results for a total comparison):

  • Family-friendly features like cribs and high chairs.
  • Entertainment options like game rooms or mini-golf.
  • Cozy add-ons like coffee bars, fire pits, or pet packages.

• Design and Interior details like updated kitchens, stylish spaces, or new construction.
• Exterior Additions such as outdoor lounges or scenic decks, architecture, and accessible driveways.
• Pricing Strategies and nightly rates.
• Host Rating - is it excellent, average or poor?
• Photography quality, staging, and lighting.
• Listing Descriptions that entice guests with vibrant details.

Once you’ve compared your totals, you might find that your property scores surprisingly high against competitors. This means your listing has untapped potential that small tweaks could unlock.

Step 3: Analyze Guest Feedback Using AI Tools

Your guests’ reviews are one of the most valuable (and overlooked) sources of information. Copy your reviews into AI tools like ChatGPT and ask it to summarize the top strengths and weaknesses mentioned. This analysis will help you gain deeper insight into what guests love about your property—and what could be holding you back.

Takeaways for Action:

• Highlight common strengths (e.g., “Spotless cleanliness” or “Best location”) in your marketing content and listing description.
• Address common criticisms in your updates. For example, if multiple guests mention that Wi-Fi is unreliable, fix it and mention the upgrade in your listing. Responding to reviews also shows future guests that you take their feedback seriously.

Step 4: Differentiate Your Listing with Standout Features

Armed with competitor analysis and guest feedback, it’s time to implement changes that will make your property shine—and ultimately earn higher revenue.

Steps to Take:

• Double Down on Your Target Audience:

  • Define your “avatar guest.” For instance, if you cater to families, provide kid-friendly amenities such as cribs, high chairs, and even board games. Go above and beyond with thoughtful touches like a breakfast bar with cereal packs so busy parents don’t have to worry about the first meal of the day.
  • Showcase what makes your property perfect for this demographic in your photos and description.

• Fix Guest Complaints:

  • If your listing had issues that past guests mentioned, show how you’ve resolved them. For example, if the kitchen lacked essential supplies, update it and highlight the changes in your photos and description.

• Leverage Beautiful Photography:

  • It might be cliché, but photos do speak a thousand words. And in vacation rentals, they’re your best tool to stop scroll-happy travelers. Invest in professional photography to highlight your property in the best light (literally—shoot during sunrise or sunset for rich colors).
  • Stage rooms to match your target audience’s lifestyle. Imagine steaming coffee cups on a deck, a cozy blanket thrown over a chair, or a chic table setup for dinner.

• Be Mindful of Limitations:

  • Every home has constraints. While you might not be able to create mountain views, you can still optimize your space. Focus on maximizing your property’s strengths and adjusting pricing accordingly.

• Showcase Differentiators Clearly:

  • Add unique features like a dog-friendly setup with bowls, treats, and paw cleaners, or a cozy firepit complete with s’mores kits. Capture these details in visuals and share them in the description.

Step 5: Monitor Pricing Trends

The final, and most important step to unlock the highest revenue potential is to analyze and monitor competitor pricing and minimum stay lengths. Using PriceLabs’ Neighborhood Data Competitor tool, you can track:

• Average Daily Rate (ADR) across seasons.
• Minimum Length of Stay policies for competitors.

Adopting creative pricing strategies (like shorter minimum stays) allows you to capture bookings at a higher rate before your competitors, ensuring year-round revenue growth.

Unlock the Full Potential of Your Property

Investing in even a few of these strategies could transform your vacation rental’s performance. From improving guest experience with smarter amenities to optimizing your listing with stunning photos, it all starts with analyzing what works—and what doesn’t.

The bottom line? Success requires both reflection and action. By studying your competitors, understanding your own property’s strengths, and making the right strategic changes, you’ll be well on your way to boosting your revenue in even the busiest markets.

Are you ready to take your property to the next level? Start small, stay consistent, and watch the bookings roll in!