Turning a profit is the cornerstone for every business model and it is no different in the land of short term property letting.
But how can you really maximise your profits on Airbnb?
To understand this question, you need to go back to basics. Utilising fundamental business principles to leverage your listing will stand you in great stead over the long term.
And because the hospitality industry has changed exponentially in recent years with the rise of Airbnb and serviced apartments, guests now expect a hotel-like experience for a fraction of the price.
This increase in demand has lead to many hosts now turning their Airbnb side hustle into a full time occupation.
So the real question is, how do you get to the next level to maximise your Airbnb revenue streams?
One of the simplest ways to increase your profit margin is to adjust your daily rates at weekends and at other peak periods.
The most important thing to remember is to be at least in line with what your competitors are charging around the same time. If you are not adjusting your prices and they are, you are losing out on the windfall that accompanies an increase in demand. Always price match and do as much trial and error as you can with your prices.
The more research you do, the more informed your decision making will be.Strategy for Your Listings
Optimise, Optimise, Optimise
It really sounds obvious but you will find it ridiculous how many hosts do not do this.
To generate increased interest and to convert that interest into bookings, its all about optimisation.
Some of the common ways you can optimise your listings:
- Creating a catchy title for the listing, like an elevator pitch, but with only a few characters to get them to click on your link.
- Add compelling photos that people want to browse through. Hire a pro if necessary.
- Write a really compelling listing description that entices the browser to want to find out more about the property.
- Use FAQs to simplify and alleviate any potential questions.
- Make an effort to exceed your Airbnb guest’s expectations.
Increase the Cleaning Fee
To make a little extra cash on the listing, you can set the cleaning fee higher. Of course, you need to keep your place spic and span to demand a high cleaning fee accordingly.
You need to make sure it’s not too high though, otherwise, short-term guests will not see it a realistic option compared to hotels and the quality they offer.
Another terrific tip you could implement is to try and outsource the cleaning by acquiring a long term cleaning contract with a reputable provider. You can also give them a specific number to call you on to ensure that communication is fast and effective, ready for the next guest to enjoy.
Response time on Airbnb is one of the key factors to guests booking with you. If they know you respond quickly to their queries they are more likely to go with your listing as they feel more reassured.
There is always that potential for hosts to be interrupted by guests at unruly times so it’s important you mitigate for this and have a plan in place.
Maybe you could use an external communications person that deals with queries in a timely manner and takes the stress off your hands?
Whatever it is, the customer is always right. You just need to handle it in the most amicable way possible. And always remember, if you allow the response rate to drop, you are at risk of lower ratings, less bookings, lower pricing, and ultimately earning potential.