I think that this is a thorny problem. I agree that lowering tier will not, by itself, increase occupancy. However, I am also certain that having an disproportionately high tier will retard our other, necessary efforts to increase occupancy and dissuade people who might otherwise join us.
I think we need to change the focus of the discussion to revenue replacement. Reduce tier and then find an alternative source to make up the lost revenue, spreading and diversifying our revenue stream.