Listing your property on Airbnb is easy, but if you are keen on ensuring stable and regular income, you have to be careful about one aspect – The price. Airbnb pricing strategies can vary, and as in the hospitality industry, the final price is dependent on many factors. In this post, we will review a few pricing strategies, but before that, let’s talk of the factors that have a say in the rates.
Factors for Airbnb pricing
Airbnb offers considerable flexibility to hosts and property owners, as far as pricing is concerned. Besides the actual cost of the rental, you can make some additional money by the way of cleaning fee and extra guest charges. At the same time, you might need to lure your customers by offering additional discounts for weekly and monthly stays. As it seems, it is important to strike a balance. Some of the factors that affect the prices include the ones listed below.
- Properties that are located in exotic places often have a higher price than others. But you also have to consider the convenience of your guests, as far as reaching the property is concerned.
- The amenities offered in a home can be used as a measure to increase the price. For example, if you are offering a home with free swimming pool and kitchen utilities, you can fetch a better price.
- Certain seasons have more tourists, and therefore, the prices can be higher. Consider the inflow of guests as a tool to find the price.
- Competition. Also, competition has an important say in the final price. If your competitors or similarly-located or priced properties are charging a certain amount, you cannot expect to get something higher than that for a given date.
The Airbnb pricing strategies
- Maximum fill-rate – As understandable, your focus is to ensure that the property is occupied for most days of the year, and for that, prices can be reduced to the lowest possible. This is an aggressive approach and requires adequate attention, so make sure that you have the time. If used rightly, you can have a steady income from the listing.
- Maximum for each night. This is a rather easy approach – You charge the highest for a night, so as to squeeze the maximum profit. Such a strategy will work wondrously if your house is located aptly, and you have a list of additional facilities. However, you have to spend more on maintenance.
- Long term rentals – Another effective choice for any host, who doesn’t want to handle and manage a lot of guests. You decide on a price that’s for the entire period, which can be anywhere between a few months and a year or more. Long term rentals ensure the fill rate, but you will lose a good chunk of the profits, especially if you want to extract more money through the second strategy.
A good idea is to balance all of the above three, by considering the factors that were mentioned above. Follow the market, read Airbnb tips and hacks online and you can get many hints.