Airbnb pricing strategies: 5 simple tips
Simple Airbnb pricing strategies
When you start an Airbnb business, pricing your property can become quite the challenge. Not to mention that it is a very crucial step in your business. Of course, you can always price your property with the Airbnb tool. However, learning some decent Airbnb pricing strategies may help you come up with a more accurate, reasonable price. This article will give you some helpful tips:
1- Take a look at your local rivals
Guests usually tend to compare the prices of similar Airbnbs before making their final decision. So, you have to know all about your rivals. Inform yourself of the property types, the available amenities, and prices in your local area. When you put these factors together, you can develop a decent pricing strategy for your Airbnb. Plus, keep in mind that having reasonable prices will enable you to get more Airbnb bookings than your rivals.
2- Don’t stick to one price
It is better to have floating prices if you want to profit more from your Airbnb business. So, it would be best to change your prices from time to time, based on the situation. Also, remember that demand is the most important factor here. Therefore:
Higher your price when the demands are high. These times may include but are not limited to warm seasons, holidays, and weekends
Lower your price or give discounts when the demand is low
With this pricing strategy, your Airbnb’s outcome will balance throughout the year.
3- Offer discounts for long-term stays
Remember that discounts will always bring more guests to your Airbnb. So, offering discounts for long-term Airbnb bookings (one week or longer) will turn your property into the top choice for visitors. At first, it may seem a bit unreasonable to you, but we assure you that, in the long run, this pricing strategy will help you make more money off your Airbnb.
4- Set a revenue goal
Setting a revenue goal for a specified period will enable you to make better financial decisions. In addition, this method can help you adjust your Airbnb pricing strategies more wisely.
Create a table for every occasion
Calculate your profit and compare it with your goal
5- Don’t overprice or under-price your house
Every property has its upsides and downsides. So, to price your Airbnb more accurately, you can:
Make a list of your amenities
Take a look at other properties with the same qualities
Higher your price if you are offering an amenity that the other hosts aren’t
Lower your price if your property lacks an important amenity
Compare the prices and make your final decision
Keep in mind that you don’t really have to stick to one pricing strategy forever. You can change things up and personalize them until you find something that you’re comfortable working with.