Pricing

[Larry459]

Hi, 

I'm new to hosting. Here's a scenario I'm wondering about.  My property is listed at $125 and is booked 75% of the month. Do I lower the price to try to book the rest of the month and risk alienating the guests that paid $125? Or leave it at $125. Anyone struggle with that issue? Thanks!

[Elaine701]

@Larry459 

Hi Larry, 

Your place looks great, probably priced about right. You say you're a new host, so you may not have a full sense of average pricing for your market, particularly as it most likely varies by season. 

It's more or less the "off" season in most of the northern hemisphere, so you're probably doing well at 75%, especially as a new listing. 

Just a word of advice from somebody who's been there and done that: be very careful of lowering prices to attract bookings. Cheap attracts cheapness. You risk attracting a different type of guest which may not suit you well. 

Whenever we reduce prices to fill unbooked dates, we usually get a slew of inquiries that sound a bit "off". You need to screen carefully, or potentially suffer an undesirable guest which, at a minimum can be irritating, and at a maximum, very costly.

Ask questions. The answers (or lack of them) can speak volumes. 

But in general, my strategy is simply to keep your standards up, and avoid lowering prices until you're desperate. Then screen who's booking. If they're paying little, and they cause you grief, it's just not worth it. Better to sit empty! 

That's my two cents. It looks like you're on the right path anyway... Good luck! 

[Larry459]

Thank you Elaine. Good to know. 

[Sarah977]

@Larry459  Elaine has good advice re dropping prices too low. 

As to alienating guests who booked at a higher price, that isn't anything to concern yourself about. Hosts may have different pricing for different dates, like weekends, or holidays, or when there is a major event happening, and raise and lower prices according to demand- it's totally common and normal. 

It's no different from any other business, like when airlines have seat sales to fill an under-capacity flight, stores who put merchandise on sale in order to make room for new stock, etc. Which is what you could point out to any guest who complains. Just because they bought an airline ticket at XX price, they can't then expect the airline to refund them something because that flight has a seat sale 3 weeks later.

[Larry459]

Thank you Sarah. Good points.