How to set rates that are not extortionate but not so low they encourage subletting

[Beth276]

My small but nice house is in a very popular weekend destination that limits vacation rentals and doesn't have enough hotels for everyone who wants to come; therefore, rates are ridiculously high, on one festival weekend in June in particular. The first year I was on Airbnb, I suspect that the renter on that weekend never stayed and instead sublet places in the house to others. (My manager lives next door and keeps close tabs on guests but so far hasn't asked for IDs.)

Many similar houses charge $500 a night for regular weekends in summer and fall and twice that for the big June weekend. I have set a four-night minimum, but my rates still are low for the big June weekend, and I have declined two requests. Now Airbnb is threatening to suspend my account.

How do I set my rates for the big weekend to discourage subletting? And how do I set rates for regular weekends? I'm just uncomfortable charging what the market (apparently) will bear. I want to be affordable for people who aren't rich but not attract guests who don't value what I offer. Reading reviews of other Airbnbs in my town, I do wonder if the more you charge, the more people like your place.

[Cherie71]

Are you renting out your place for charity purposes or as a business to make money?  🙂

If it is a business, then having your prices a bit less than the local hotels - or commiserate with other Airbnb's in your area - is just sensible.

[Mike-And-Jane0]

@Beth276 How about charging the going rate for your place and then the 'extra' that you make you donate to charity.

I suggest this because I don't think there is an easy way to have low prices and not risk sub-letting.