@Bambii0 I mostly agree, but differ a bit in this way... If I want to rent my place out for every night of the month, more or less regardless of total earnings, I might price it at, say, $50/night. If my "value" is at that or higher (which it is), I'll fill up quickly. On the other hand, if I want to maximize my total earnings, I might price my place at, say $100/night, and accept that I'll only book up 2/3 of the time (or whatever), but still make more than the previous model, then that's great. And if I'm really not interested in staying very busy, but instead want to chance renting out once or twice a month for an absurd price, then why not shoot for $999? No one forces renters to accept that price. If it works, it works. (IN the case you cited, I doubt that it will.)
BTW, this is NOT the model we practice. If anything, we tend more toward the "fill every night' model, because we believe that guests who pay a bit less than the maximum we could charge are more likely to be happy than guests who pay a bit more or who pay the max we could extract.