Pricing our listing-- considering an increase

[Laura2592]

We are at a crossroads with our cottage in terms of pricing. We started out at $50 a night which was a huge mistake. We had no idea what demand, if any would be for our space. Since then we have raised over time to an average nightly price of $135. We are booked for all weekends into July which would seem to indicate we need to raise prices again.

Our cottage is the only listing in the small town where we are, and one of a handful in the immediate area. There are many cute places in Frederick and Gettysburg, each about a half hour away. We have strict occupancy limits right now due to our cleaning crew and what they are able to handle. The few times we have allowed more guests we have gotten dinged on cleaning by the next group because our cleaners only have a limited time to spend in our space. We go behind each guest group to disinfect and re-clean but with bigger groups it can be a challenge.  Hence our limits.

We have only ever had one guest give us a 4 in value and that was someone who had tried to negotiate hard on the front end because "things should be less expensive and I am on a fixed income."  I think we could tolerate a rate increase. However the nightly prices jump on places in the area only when they seem to allow 6 or more guests. We could jam in an air mattress and list the sofa as a sleeping space for that but not sure its worth it.

We have tried to upgrade each time we did a significant rate increase-- added a deck. changed out furnishings, bought nicer sheets and towels, etc. We could continue to do that. For example, I would love new counters but not sure that adds to the bottom line. We have a guest suggestion box and MANY have asked for a hot tub. That could certainly raise our profile and pricing, but who wants to clean that?

Smart pricing is on, but it really doesn't work well as there are few listings in the area to compare it to. We had 88.5% occupancy in the last 365 days which we are pretty pleased with. We leave a day between guests so its hard to rise much above that number.

Thoughts or advice?

[Inna22]

@Laura2592 get a free trial with one of those smart pricing companies like wheelhouse. I used one prior to covid and was very happy with suggestions. 

[Laura2592]

@Inna22 another host mentioned ot and I looked intl Wheelhouse.  Not enough data for my market do its not available for my listing. 

[Ann72]

@Inna22 @Laura2592  Wheelhouse isn't available for my market, either.  I got a free trial for another one and took a three-month average of their suggested pricing.  Ultimately it all netted out to be lower than my own pricing, so it's back to the drawing board.  I don't get many bookings from VRBO but this year I've been using their pricing on Airbnb.

[Lorna170]

@Laura2592   Your place is absolutely breathtaking.  And if it were here in the mountains of NC, you would be able to command upwards of $300 per night.  I would raise your rates and see who takes you up on your unique offering... I would pay it (and maybe I will be your guest one day).

[Laura2592]

@Lorna170 thank you! You are too kind. 

We aren't in the mountains, but on a little over an acre lot. Neighbors are visible, which is a disappointment to some. But the house itself is a treat. We would love to host you if you were ever up our way.