It’s essential for every Airbnb host to have a strong pricing strategy for the slow season. These crucial months can decide whether you’re able to stay open to take advantage of the peak season!
With the high demand in the peak months anyone can have a fully booked calendar – it’s how hosts manage the slower months that separates the professionals from the amateurs.
Your off-season could run from November to March depending on your area. There are a variety of strategies you can implement that will increase the flexibility of your listing. As a result, this will increase the amount of future potential guests interested in your Airbnb.
It’s important to note that by having a more flexible listing, you increase the risk that comes with your Airbnb. Make sure to evaluate both the benefits and pitfalls before you implement these strategies!
You don’t have to follow all of the strategies listed below. If you just choose a few that align with your Airbnb rental you’ll still be in a better position than your competition.
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Lower the Price
This is the most obvious strategy for Airbnb’s during the slow season, but you’d be surprised how many skip this step or do it incorrectly. A lot of hosts only lower their prices to what they’d like to receive from their rental, but this runs the risk of an empty property and an even bigger loss.
So, to calculate the true minimum price of your Airbnb you need to add up your fixed costs, your variable costs and the price of your time.
Your fixed costs are expenses that occur regardless of guests, for example rent or mortgage, and your variable costs are expenses paid when guests are in your property like gas and electricity. In addition to these costs, consider how much you’d price your time for managing the Airbnb.
You can then calculate your true minimum price – this will create more profit than having your rental empty. It’s important not to be put off by how much lower this number will be from your peak season price as what’s most important is to not be cutting a loss during the slow season.
Increase Your Percentage Discounts
Increasing your percentage discounts on your weekly and monthly bookings is a great way to encourage long term guests.
Long term bookings are perfect for the slow season as it takes the weight off your shoulders knowing your Airbnb will be occupied for an extended period of time.
Generally, a week-long booking will receive a 10% discount and a month will receive 20%, so during the slow season you should consider doubling these numbers to attract potential guests from your competition.
Or you can research the actual discounts of your competition by filtering the search for your area, price range, and the number of beds to see how much similar rentals are offering and then increase your own discounts by 5% more than them.
Remove the Extra Person Charge
Extra person charges are a pricing strategy that is best reserved for the peak season, during the low season it’s best not to include anything that could deter any potential guests.
There is actually limited extra work or wear and tear from any extra guests, most hosts charge the extra fee simply because it’s an available option.
However, to make sure your guests aren’t exceeding the maximum occupancy of your rental, you can still include a fee for any guests over the maximum. This is especially effective for discouraging guests from bringing more people than your rental allows for Airbnb’s with self-check ins.
Lower Minimum Nights to One
If you haven’t already you should lower your minimum night’s stay to one, as there is a surprising amount of Airbnb’s which don’t allow this. You’ll then be opening yourself up to a greater pool of potential guests.
The slow season is a great time to trial this and see how your booking numbers benefit. And if means having guests over an empty rental, it’ll be worth the extra cleaning costs.
Add ‘Discount’ to Your Listing Title
Changing your listing title is a great strategy for the slow season as it’s that little bit extra that can be the difference between getting a booking and losing a potential guest.
Your potential guests have already narrowed down their search to find your Airbnb. Seeing the 10% discount listed in the title will entice them to at least click through to your listing to see what your property has to offer.
Once the guests are on your listing, make sure to write out the details of the discount you’re offering. Make sure that your guests know exactly what deal they’ll be getting if they book with you.
This is a very effective strategy that so many hosts fail to implement during the slow season, and it’s so simple and easy to apply to your listing.
To sum up…
Having a pricing strategy for the slow season is crucial. The strategy which works best for you will depend on your area, competition and the needs of your guests. With trial and error, you can find the most effective methods to keep guests flowing through and keep your Airbnb from sitting empty.
- How To Successfully Price Your Airbnb Across The Year
- How to Create the Perfect Pricing Strategy for Your Airbnb
- Why Monitoring Other Airbnb Hosts is Important
If you think you could benefit from some help with maximising bookings of your short-term rental, feel free to contact us at Keey today.