Seeking Advice on Effective Pricing Strategies for Airbnb Listings

[Charles1671]

Dear Colleagues,

I hope this email finds you well. I am reaching out to seek your insights and experiences regarding the pricing strategies for Airbnb listings.

Recently, I have been grappling with the most effective method to price my Airbnb property. There seem to be different approaches, and I am uncertain which one yields better results. Specifically, I am contemplating whether participating in promotional activities and offering discounted prices is more effective than setting a regular, consistent price.

Despite experimenting with promotional activities, I haven't observed a significant increase in bookings. This outcome has left me puzzled and questioning the efficacy of such promotions. I would greatly appreciate your perspectives and experiences in this matter.

Have you found that offering discounts during special events and promotions leads to increased bookings? Or do you believe that maintaining a stable, standard price tends to attract more consistent business? I am keen to understand the rationale behind your strategies and how they have impacted your booking rates.

Your insights would be incredibly valuable to me as I navigate this challenge. Thank you for taking the time to share your experiences and advice.

Warm regards,

Charles

[Bronwyn100]

@Charles1671 Difficult one. Originally i charged $225 for the first bedroom then $25 a night for each extra guest. If there were only a couple then this was a great deal for the whole house. Then an Airbnb host suggested i charge a flat fee of $300 per night for the house. I find this isn’t working as well as it disadvantages a couple. I also lose $25 if 6 book. The advantage of doing it the first way is the other beds don't get used. I haven't paid for any advertising but I would consider it.

[Amber727]

Hello Charles, depending on the size of your market there are a couple of ways I have found to be helpful.  In larger markets with many visitors and many airBNB hosts, there is an application called AirDNA which will make smart pricing suggestions based on your market and can auto-adjust your pricing on AIRBNB and other platforms if that is something you are interested in.

If you have a smaller market, like myself, then I feel looking at what other AIRBNB (etc.) listings are going for in my neighborhood and staying close to remain competitive.  Unless you have a pool, hot tub, or something truly unique these guests are not going to pay much more than your surrounding neighbors.  I like @Bronwyn100 's idea of finding small ways to upcharge for additional guests or pets or cleaning, etc. That way your search price remains reasonable so you are getting more views.  

I hope some of this is semi-helpful because it is a lot of trial and error and that does make it hard to calculate your costs verses returns.  I am still new to it but I think it is a great way to pay down a mortgage.  

If you are interested in those event/weekend guests, then keeping your nightly rate lower and upping cleaning for short stays may help to capture those guests better than saving 15% or something similar.  I prefer longer guests so I have fewer hassles and so I am willing to offer good discounts when booking longer than 7 days and then even lower if booking longer than 30 days.  If you are near a hospital, this also is nice for traveling medical workers who are professionals who are getting paid well for, usually, 13-week contracts and they need a place to stay with a full kitchen, etc.