Thanks to Airbnb, you don’t need to find other ways to rent your property. This is one of the most flexible platforms for property owners, and with the right approach, you can ensure good profits too. One of the crucial aspects is related to Airbnb pricing. If you check online, you will find many resources that talk about ways to optimize Airbnb pricing. In this post, we have some pointers that may come handy.
How can I manage Airbnb pricing?
You can use some of the smart pricing tools. Airbnb offers a simplified tool, which will generate an automated price for your property based on demand, competitor rates, season, location and other factors. There are paid software tools, as well, and some of them are extremely accurate. Of course, when you have the time to do your research, you can choose to set a fixed price for every day and change it as frequently as required.
What’s the ideal pricing strategy?
It’s hard to talk about one single strategy. Some hosts like the idea of having the maximum fill rate, which is all about ensuring regular income. On some days, the property listed at $100 can have a price of just $20 to ensure a booking. If you are a small property owner, this kind of strategy can work well, if you have the time to manage the listing. Another approach is to charge the maximum price, subject to certain terms. Let’s say, you have a home somewhere in Santorini, and you have fixed an upper price. You will not change the price regardless of the demand, because you want to maximize the profits from a single booking. This approach is best for well-located properties that sell for design, architecture, and facilities. A good number of hosts like to go for long term rentals, which ensure regular income and don’t need regular management, although the profits may decline. You may find some more Airbnb tips on pricing strategies online.
How to charge the customers (Airbnb guests)?
Your pricing decision is determined by many other important factors, as well. Most hosts prefer to charge their customers for additional guests, depending on the type of property they have. Also, there’s an obvious choice of adding a cleaning fee. For certain other amenities, you can decide to add extra charges too. Now, if your guest is staying longer than a week, you have to lure them with discounts. If you want to ensure a certain amount of profit, you can keep the extra charges in place and reduce the base rental price. For the customer, it’s a good discount, while you won’t lose any money either.
Check out tools that can help you with Airbnb pricing. Also, you have to keep an eye on competitor prices, especially if you want to personally decide the price and manage the listing. Seasonal rates change with demand, and therefore, you have to understand the market, especially for touristy places. Not to forget, you need to evaluate if any additions to the property can help in getting better prices.