Let’s talk about Airbnb hosting – it’s not easy to figure out how to set the right price for your place. Many hosts, and we’ve all been there, struggle with this because it’s tricky to get it right. There are a lot of things to think about, like what other hosts are charging and when people want to book a place like yours. Sometimes, hosts just go with their gut feeling when deciding their prices because the other stuff can be a bit too much to think about all the time.
Seeing this struggle made us want to help out. So, we made a detailed list of pricing tips that any Airbnb host can use, whether you’re brand new or have been doing this for a while. Starting out, it’s key to do a little homework. Look at what prices other hosts are setting and think about when and why people are traveling to your area. Check out what guests want, too, like certain amenities. A quick look at this basic info will give you a solid base, helping you to set a smart price for your Airbnb listing.
1. Embarking on Airbnb Pricing for Hosting Novices:
Don’t raise your price too soon. It’s important to set your home’s price a bit lower than the average market price to attract those first, important bookings. Trying to compete with older listings that have lots of reviews right away isn’t a good idea; building up your own set of reviews should be a slow and steady process.
Tip: Starting with a lower price helps you build trust and avoids quick rejections. Plus, by having a lower price while still giving excellent service, you can sneakily beat the competition. To put it simply: Lower pricing is often a great way to attract Airbnb guests!
Read Next: Which 5 Tactics Will Elevate Your Airbnb Bookings in 2023?
2. Gradually Escalate Your Listing Price:
After you’ve gathered a good number of reviews, it’s a good time to think about raising your price. Keeping a low price for too long might accidentally cause you to lose out on making more money.
Something Important to Remember: Just because your place is booked a lot doesn’t always mean you’re making as much money as you could be. If people are always picking your place because it’s cheap, they might have been willing to pay more, and you could be missing out on extra earnings. Moving on to the next point:
3. Immerse Yourself in Research:
Try to learn how other hosts, who have similar properties to yours in terms of size, number of bedrooms, style, amenities, and so on, especially those nearby, set their prices.
Tip: Notice how both old properties (ones with a lot of reviews) and new listings (ones with few or no reviews) set their prices. Hosts with more experience and reviews usually charge the full market price.
Read Next: How to Set Competitive Prices for Your Airbnb
4. Deepen Your Research Efforts:
Don’t cut corners. Spend time and effort to really understand how to smartly set your Airbnb property’s price and find out its true worth, judged by how the market reacts. By getting to know similar properties around you, you also get to know who you’re competing against. It’s super important to know your competitors. Also, look into some of the most loved properties on Airbnb and figure out what cool things they’re doing to wow their guests. Do the same things.
Tip: Figure out and do what guests love, and they will likely love you back.
A Helpful Hint: If you like to offer extra stuff to your guests, feel free to charge more for that. A lot of Airbnb hosts do this to make their service worth more, and usually, guests really like these extra touches.
Read Next: How to Become an Airbnb Superhost
5. Timing is Paramount:
Always keep an eye on changing seasons, shifts in when tourists like to travel, and even the differences in prices between weekdays and weekends.
Weekdays VS Weekends: There’s a clear reason why hotel prices go up on the weekends and jump even higher on long weekends – that’s when more people travel. In short: demand goes up on weekends.
Tip: If you’re charging the same prices for both weekdays and weekends, you might want to think about changing your approach.
Read Next: Seasonality: How to Price Your Airbnb Across the Year
6. Stay Abreast of Local Happenings:
Being aware of big events happening in your city that can attract lots of people — either for fun or work activities (like relaxed events such as concerts, musicals, local festivals, big international events like F1 races, the Olympics; or work-related events like conferences, seminars, or exhibits) — is also really important.
Read Next: How to Create the Perfect Pricing Strategy for Your Airbnb
Conclusion:
We get it; finding the perfect price for your Airbnb property can be a tough journey. It really does take a lot of time and work — something every successful Airbnb host must go through.
But there’s some good news:
There are Airbnb and property management service companies, like Keey, that are here to help take away the stress and hassle from your hosting duties, making your earnings journey smoother and easier. Take a look at what they offer and see how they can help you with your pricing troubles.