Like most things in life there is a sweet spot when it comes to occupancy and room rate. Dropping tariffs may increase your occupancy and revenue, but only to a certain point. Increasing tariffs may reduce your occupancy but increase your profit, again only to a certain point. The sweet spot is optimal, sustainable profit for you (and therefore also for your owners). Other management rights operators will tell you that this sweet spot is usually also the optimal compromise between work and lifestyle. Do the numbers, try different combinations and find your sweet spot.