Top 3 Airbnb Pricing Strategies Mistakes You Might Be Making in Your Airbnb Business
Running Airbnb business is a delicate job that needs you to be both decisive and calculating at the same time. Silly blunders or impulsive behavior could cost you your whole business. The biggest mistakes are usually committed when it comes to dealing with numbers. Airbnb pricing strategies are tricky, yet pay off and are completely worth it when you know how to execute them with precision. The following Airbnb price optimization tips will help you in mastering the skill of being the best at what you do. There are some common mistakes that many hosts make. We’ve listed them below, so you can avoid such trivial mistakes and make sure that everything runs smooth:
DO NOT Compete With the Wrong Rentals
Depending on the services you provide and the type of accommodation you offer, you have to set your competition straight. Two-bedroom rentals should not be squaring up to four-bedroom rentals. That actually doesn’t play in the favor of anyone because guests search for rentals according to specifications. Pick a rental that matches your requirements and try to succeed in that field. Someone searching for a two-bedroom rental will pick the one that has a hot tub or a Jacuzzi over one that doesn’t, but not the one that has completely different specifications (like an extra bedroom or bathroom).
Setting Your Price Based On Personal Values
Your beliefs and views should not impact how you price your property. Your Airbnb property is not for your own use. If you spent a lot of time fixing up the interior and fancying up the place, then do not consider that your hard work and effort play a role in the amount of rent you request. Your rent should equal the quality of the items you have used to furnish it as well as the amenities your accommodation provides. If your property means a lot to you, do not change the price on Airbnb property for that specific reason.
Not Following Market Value
Rate optimization for vacation rentals mostly relies on what is going on right now in the market. The market provides the most accurate and sensible Airbnb price optimization options for you. By not following those Airbnb pricing strategies you are simply lowering the value of your property and destroying any possibility of getting your business to higher grounds. People undoubtedly conduct their research before they place any Airbnb booking and if you change the price on Airbnb to something higher for personal benefit, the only response you will get from customers is silence. Customers are more than willing to go the extra mile and search for a more affordable property that runs by the market rules rather than settling for something overpriced.
Make a clever decision regarding your Airbnb pricing strategies because the price is actually what ‘makes or breaks’ your business. Most people who book Airbnbs are doing it for a more personal experience and to avoid the high cost of hotel rooms. Airbnbs are known to be more affordable than hotels, so price your property accordingly.