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Your income comes from 3 key sources:
Occupancy rate - is where this site helps -- If you get your property well let, you can also afford to price more highly. Weeks let x weekly rate = income.
If you can get 50% occupancy rate then you are doing better than most. Pricing here is crucial because if you were to loose just one week's rent, then you've lost around 4% of your gross income, with hardly any change to your expenses.
So, the proportion of loss to your profits is even higher.
So if you dropped your prices 10%, but your bookings increased to 75%: your gross income rise 35% -- So Occupancy rate is what matters, far more than weekly rates.
You would be better to keep the weekly rates artificially low until your occupancy rates are high. After you've been doing this for a few years, you will have (hopefully) got some returning visitors. This helps greatly and shows you're doing something right.
See also the Tax Advantages of Renting Out Your Holiday Home
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