Recap of Pacer's original findings, recommendations, and early wins, plus the current market context and the decisions needed on fees, 2027 booking policy, and reservation process to keep the strategy aligned going forward.
Pacer's work with Coastal has centered on four connected themes. The strategy is still sound, but the operating model needs to be tightened so pricing, reservations, fees, and owner communication all support the same goals.
Coastal had strong demand signals, unusually long lead time, and an established direct-repeat base. Upside came from monetizing that demand better.
Heavy flat and minimum fees inflated guest-facing totals, especially on smaller homes and off-season stays.
Future reservations and pickup showed stronger rate capture when far-out inventory was priced with actual, protected rates.
Leadership alignment is needed on fees, 2027 availability, manual overrides, OTA commission handling, and reporting process.
The original audit showed a company with demand, repeat-booking strength, and several high-performing segments. The opportunity was to turn that demand into cleaner revenue through better rate protection, fee structure, LOS strategy, and OTA visibility.
The fee recommendation was designed to preserve fee revenue while making the guest-facing total more proportional and competitive, especially for off-season and smaller-home bookings.
Combine reservation, credit card, and keyless fee revenue into one percentage-based processing fee. After keyless was rolled into the reservation fee, the refined recommendation was approximately 9%.
Reduce from 8% to approximately 4.25%, based on prior-year collections around 4%, so Coastal does not give up the intended fee stream.
Evaluate moving linen markup, or a portion of it, into a percentage-based amenity structure. Leave cleaning alone initially.
Why it matters: a flat or minimum fee can become a very high share of rent when ADR is lower, making the property look less bookable even if the nightly rate itself is competitive.
The concern is that some fee revenue is still behaving like a flat or minimum burden, which creates the exact off-season and smaller-home issue the original recommendation was meant to solve.
Observed effect, Shell Cottage example: base rent had to be reduced to under $70 per night for a $190 per night guest-facing rate on a 3-night stay. Some recently booked reservations had fee-to-rent ratios over 70%, many were over 50%.
Recommended framing for Wyle: this is a revenue-structure discussion, not just a lower-the-fees discussion.
Coastal naturally books farther out than the broader market. Pacer's recommendation was not to stop that behavior. It was to protect the value of that demand by booking future stays with actual rates and better rate controls.
Guest held future dates with minimal deposit and no finalized rent until later. This made pacing hard to interpret.
Public online availability capped around 365 days, with repeat-guest opportunity before dates opened more broadly.
Rates protected higher far out to maximize earning potential.
Reservations carry actual revenue, so Pacer and Coastal can read pace earlier and adjust sooner.
When future reservations came in at protected rates, the results were visible quickly in booking velocity, booking window, and reservation value.
These wins are the reason Pacer recommended keeping future demand bookable with real, protected rates rather than reverting to no-rate holds or closing OTA visibility.
So far this year, Coastal Shore Vacations was mostly in line with the greater Chincoteague market, though it outperformed the market in peak season RevPAR, occupancy, ADR, and LOS.
Source: Coastal Shore Vacations Strategy Review, Aug 20, 2026
The newer Cape Charles segment has shown continued year-over-year growth, with total RevPAR almost matching market in peak season, strong ADR growth, and a LOS much more in line with the market.
Source: Coastal Shore Vacations Strategy Review, Aug 20, 2026
The goal is to align the operating model so Pacer can manage revenue with clean inputs and clear guardrails.
Complete the percentage-based fee strategy or define a different target structure Pacer can price around.
Decide whether future OTA inventory should be open, blocked, or open with clear repeat-guest rules.
Use the "Specials" page to advertise "Last Minute" and "Early Bird" promotions.
Create a standard explanation for Airbnb commission, OTA fee, and owner payout differences.
Confirm who owns decisions and communication.
Pacer's recommendation is to keep the core strategy in place, but remove the operational noise around it.
If these decisions are aligned, Pacer can continue optimizing Coastal's portfolio with stronger rate protection, clearer performance reporting, and a better guest-facing value proposition.
Pacer's recommendation is to keep the core strategy in place, but remove the operational noise around it.
Better software at a lower cost, with the potential to save thousands annually.
A more modern, integration-rich platform with stronger automation, connectivity, and scalability.
Better align guest costs with stay value and improve off-season competitiveness.
Lea Wey & Shaugnessy Fish · Pacer Revenue Management · pacerrev.com