Are you charging enough for your Airbnb property? Or perhaps lowering prices too soon?
Whether you’re an experienced short-term rental manager or a beginner, you will find that getting it right with pricing is an on-going and challenging process due to many changing factors.
It’s not uncommon to find properties with high occupancy that still miss out on revenue as they don’t optimize rates.
In this post, we look at the key factors to consider for your Airbnb pricing strategy.
Understand your client demographic. General Airbnb statistics can help you work it out at a property level. For example, in the United States and Europe, the largest group of Airbnb users is aged between 25 and 34.
At the end of 2017, Airbnb announced that seniors are the fastest-growing group both as hosts and guests. 88% of reservations are made for groups of 2 to 4 people.
Compared to other listing sites, Airbnb guests stay 2.4 times longer. The average stay in urban destinations ranges from 2,9 – 6,3 nights. Research and use statistics to segment your Airbnb clients properly.
Your property location is important as a destination type, but also for its proximity to sightseeing and points of interest, including conference venues and means of transport.
It’s crucial to adjust pricing for major events far ahead. Other features that will add to the perceived value of your property include outstanding facilities like a terrace, swimming pool, luxury furnishing, exclusive views etc. Guests do pay more to benefit from these features.
Check your competition regularly as chances are, it is growing. Furthermore, new listings are known to enter the market with aggressively low prices to generate bookings for stats, ranking and reviews.
You can also rely on technology for specialized market insights. Data intelligence companies like Transparent and AirDNA provide specific info and benchmarking, so you can forecast low and high demand.
A large Vacation Rental Industry Report conducted recently by Rentals United found that Cleaning is the most costly process for property managers and owners to-date.
Add a cleaning fee on top of the nightly rates but keep it as cost-effective as possible.
Dynamic pricing is the current standard in the hospitality industry. It is provided by software companies that use real-time market data of supply and demand to calculate and adjust nightly rates.
The most straightforward and easy-to-apply rate, Price per Night is the amount you wish to charge each night.
Benefits: This rate type is the most simple to set long-term and manage, especially to make changes.
How it works with Rentals United: Set your seasonal nightly prices in Rentals United. We will enable the connection and you choose between Full Sync (connecting all listing content, amenities, photos, pricing and availability) and Limited Sync (connecting only prices, minimum stay and availability).
Considering the higher average stay, using Length of Stay can be very beneficial for your Airbnb listings. LOS is a great way to offer discounts for longer stays. The minimum stay is also more flexible as the nightly rate adapts to it, thus you will appear in more searches.
Benefits: Promote longer stays, guarantee revenue regardless of the number of nights booked, appear in more searches.
How it works with Rentals United: Insert your Length of Stay rates one by one or automate the process by using an advanced Property Management System that offers this feature.
Multi Units – it is possible to advertise multi-unit inventory on Airbnb via Rentals United. They will appear as individual listings.
Preparation Time Before Arrival – the number of days you would require to prepare a property for a last-minute booking. Leaving this setting at 0, means you allow guests to book and arrive on that same day. Set it at 1 if you need one day notice and so on.
Changeover Days – an option that allows you to decide on which weekdays check-ins and check-outs are allowed. It’s especially useful for those properties rented out seasonally when you might want to limit departures on specific days.
Minimum Stay for Airbnb Pricing – it is possible to apply a separate minimum stay only for your Airbnb properties since it’s a site where guests book longer stays.
Are you ready to start earning more on Airbnb and other global & niche booking sites? Discover how our enterprise-level Channel Manager can get you more bookings.