Setting the prices for your Airbnb rental is a crucial factor in your Airbnb business. After all, the better your pricing structure is managed and monitored, the more money you’ll make. Proper pricing decisions take time and a little research, but once you’ve mastered correctly pricing your Airbnb, you’ll be well on your way to running a successful Airbnb business.
Airbnb pricing 101
Step 1: Set a base price
Setting base price is the first step in correctly pricing your Airbnb. Simply search for properties that are similar to yours to get an average sense of their prices. If you are new to the Airbnb game, it may be a good idea to set your base price a little lower than your competition. This may set you apart and get you some initial rentals. As you gain popularity and get high ratings, you can always up your prices. But, setting a solid slightly-lower-than-average base price is a good starting strategy.
Step 2: Adjust from there
After you’ve set your average Airbnb base price, it’s time to add in some variation. Think about what drives people to rent an Airbnb in your location (weekend vacations, special events, parties, holidays, etc.). You should note these activities or popular times of year and increase your prices accordingly. It’s also helpful to note the slow times so you can provide discounts or special offers to encourage guests to stay with you.
A little overwhelmed with price setting? You have nothing to stress about. Luckily, with Hosty’s AutoPrice Feature, we can help you monitor and adjust your prices with ease. With Hosty’s Airbnb property management software, you’ll have all of the professional Airbnb management tools you’ll need to succeed.
The main takeaway: If you remember nothing else remember that supply and demand rule all pricing decisions. If your rental is in a high-demand market with only a few other Airbnb’s, you’ll be able to charge more for your space. If it’s in a less popular area or you have tons of competition, demand will drop and so should your price. Pricing according to dates, events or times of year is an excellent way to maximize your revenue.
With a little research, your perfect Airbnb pricing formula will be within reach.