At times, a low price may be considered a great deal. Other times, a big discount feels like it’s too good to be true. In one area, a premium price may attract a well-off buyer. In a different area, a premium price will cause your rental to sit vacant. Accurately pricing your Airbnb is an important aspect of running your vacation rental business. So, how can you properly price your Airbnb listing in order to make a profit without charging too much or too little? It’s a delicate dance between demand and supply with some market research added to make it interesting. Taking the time to perfect your pricing guide is a valuable skill that will pay off in the end. Keep reading for a comprehensive Airbnb pricing guide.
Airbnb pricing guide
Get you base price from Airbnb:
First, you need to get your base price from Airbnb. Input the location, number of guests allowed, and rental type. Also, add any amenities such as pool access, outdoor space or office space. Airbnb will analyze this information and give you a base price.
Look at comparables:
After you get a base price, start looking at the prices of other homes with similar features in your area. If there aren’t any homes like yours around, perform a search in comparable cities or adjacent towns. Researching the prices of rentals similar to yours will help you hone your Airbnb pricing guide. If you’re new and have only a few reviews, consider pricing below these homes. If you’re an Airbnb pro and have great reviews, you may be able to price higher than the comparable in your area because your reputation will warrant the price increase. Don’t just browse this information. Write it down so you can go back and compare pricing for multiple rentals.
Think about your ideal renter:
A good way to hone your Airbnb pricing guide is to think about and then market to your ideal renter. Business and luxury travelers are willing to pay more for a rental but expect more amenities in return. If you have what they’re looking for, making it known and making the price reflect it is a good way to increase your bottom line.
Don’t forget seasonality and special events:
Perfect summer days, sporting events, festivals and large conferences all can affect the number of people coming into your area and more importantly, how much people are willing to pay to stay in your rental. Make sure you pay attention to the significant events in your city and think through how they may change your pricing decisions. Also, make sure you’re thinking ahead. People plan big trips up to 6 months in advance so your diligence will pay off.
Pro tip: Hosty’s auto pricing tool will make sure your pricing is efficient across all of your accounts.
The final takeaway:
After you have established your Airbnb pricing strategy you may be surprised by a sudden increase in new bookings. Don’t let your new influx of guests become overwhelming. Once you’ve started to get more inquiries, it’s also time to get Hosty. Hosty is the professional Airbnb vacation rental management software that helps you do more in less time. With great features like our Listing management system, Automation Tools, and our Multi-Calendar, Hosty will make you an Airbnb pro. Try it today!