Property Management Tips

Debunking the Myth: Lower Prices and Property Damage in Vacation Rentals

  • March 20 2024
  • Angel Host

In the bustling world of vacation rentals, the idea that lower prices might attract guests prone to causing property damage has long been a concern for property owners. However, at Angel Host, we've delved into the data to challenge this assumption and provide concrete evidence that sheds new light on this common industry belief.

Drawing from insights gleaned from over 1,000 global properties and analyzing tens of thousands of bookings, we embarked on a comprehensive study to unravel the relationship between rental prices and property damage. Our goal was clear: to provide vacation rental managers with evidence-based insights to optimize their revenue while ensuring property safety remains a top priority.


Contrary to popular belief, our findings unveiled a surprising truth: properties rented below their Average Daily Rates (ADRs), after adjusting for seasonality and market dynamics, did not experience a surge in damage claims. In fact, our analysis revealed that lower-priced properties tended to report fewer and less costly damage incidents, challenging the prevailing notion that lower prices equate to higher risks.

Diving deeper into the data, we found that the probability of a damage claim occurring across major online travel agency platforms remained remarkably low at just 1.48% in 2023. Even more compelling was the discovery that properties rented at discounted rates exhibited a consistent pattern—they were neither more prone to damages nor did they incur higher average claim amounts.

Specifically, among properties utilizing dynamic pricing strategies, those rented below their ADR represented a significant portion of bookings yet contributed to a surprisingly low percentage of overall damage claims. This underscores the effectiveness of dynamic pricing not only in maximizing revenue but also in safeguarding property integrity.

In conclusion, our study, which analyzed 18,734 reservations resulting in 277 claims, provides invaluable insights into the relationship between rental prices and property damage in the vacation rental industry. Out of these 277 claims, 140 (or 50%) occurred in properties rented below the ADR, 41 (15%) at a price point equal to the ADR, and 96 (35%) at a price point higher than the ADR. These statistics lay the foundation for the conclusions outlined throughout this blog post.

Through meticulous analysis and data-driven methodologies, we have debunked the myth that lower prices attract guests more likely to cause damage. Our findings not only challenge common industry assumptions but also underscore the effectiveness of dynamic pricing strategies in maximizing revenue and maintaining property integrity.

At Angel Host, we are committed to a data-centric approach that not only debunks myths but also sets a new standard in the vacation rental industry. Our findings affirm that price flexibility, when managed expertly, does not compromise property safety but instead opens avenues to optimized revenues and enhanced operational efficiency.

If you're a vacation rental property owner or a property management company keen on harnessing the power of data-driven strategies to elevate your listings and increase revenue, our team at Angel Host is here to help. Reach out to us today to discover how we can support your journey towards success in the vacation rental market.