How to determine pricing

[Brenda54]

Hi all I am brand new to Airbnb and just listed my house for the week of the Super Bowl as we live 25 miles from the stadium in Houston. I am confused because some homes similar to mine are asking for $2000 to $3000 a night and other homes that are even nicer and closer are showing as low as $200 a night. Am I missing something??

[Linda0]

Hello Brenda --

I live in the Spring area which is further north and also noticed that people are already pricing the space for Superbowl 2017.  I have seen as much as whole house for $5000 per night and can accommodate 12 people. The Hyatt is advertising packages for $5635 PER PERSON for 3 nights. So I have listed my rooms for a higher price (300), of course no way that high like the Hyatt, and I plan on being in my house during the time, so will be home share! As the time gets closer, I will adjust my pricing to match my area competitors.

Happy Hosting

Linda J

[Brenda54]

Thank you Linda! $5600+ PER PERSON is insane so I will keep my cost at $2k per night for 12 people. If they split the cost it's really not that bad. And will follow your lead to change if necessary as the game gets closer.

[CarlandDiane0]

Linda seems to be on to something by charging by the room. This is especially true if you treat your entire house like a large B&B that's open to multiple groups of travelers.  That way you're not relying on a single huge group to get the most revenue possible -- and you have the added benefit of posting a lower per-room rate rather than a rate for the entire house.

[Brenda54]

If you post a per-room rate and strangers are sharing your house does that not take on an additional risk of conflict between the guests?

[CarlandDiane0]

This is a good question, since you would be renting this out for the Super Bowl and if you have multiple groups, there's a good chance you'll host fans of both Super Bowl teams.  Could there be conflict? Possibly. You could simplify matters by only renting to a single group, but I would assume that would limit your chances of booking the property.

We only rent to one group at a time, but we've stayed in typical B&Bs for years, where you end up in the kitchen or at breakfast with strangers. And it works out fine.  Most people are reasonable and polite to their fellow guests. And they're in town to have a good time, which I think should help.

Linda J's advice on House Rules is very good. We have a notice in our listing summary -- right up top -- stating that by booking with us, you're agreeing to abide by our house rules, so you should read them and consider them before you book. Don't be afraid to be explicit about your rules, and don't be afraid to borrow rules from other listings that suit your needs. That's for your protection.

The deposit is also a good idea. Stuff happens. You're not being unreasonable by requiring one.

Good luck!

Carl & Diane

Casita de Milagros

San Marcos, TX

[CarlandDiane0]

Hi Brenda. We're relatively new to Airbnb as well, but I find the pricing discussion pretty fascinating.

We look at similar properties in our neighborhood and then price within that range. You will occasionally find outliers -- properties that charge well above or below the norm -- but after some digging into their listings you may discover why their prices are so skewed. And beware of properties that overprice during special events; everyone's looking for a big pay day, and expectations can get quickly out of whack. Just because they're asking $3,000 a night doesn't mean they'll get it. You might also want to see what properties inside the loop are charging. If it's in the $2K to $3K range, or lower, then I'd say those higher-priced listings in your area are too high.

Airbnb may suggest a price, but I should note that we find their suggested price for our property to be laughably low. (We have a base price of $114 vs. the $65 Airbnb suggested price, and we happily are booked up every weekend.)

Now, about your location. You're 25 miles out in the 1960 area according to your listing (I know it well as I used to cover that area for the Houston Chronicle). That's certainily driveable, but it's still a ways out there. This should factor into your pricing. Your guests won't face traditional rush hour traffic on Super Bowl Sunday, but it will be pretty hairy down around NRG. And if you get the 16 people your listing says you can accommodate, they'll need at least 3 or possibly 4 vehicles to drive and then park downtown. They'll be thinking about this as well when they're looking for Super Bowl accommodations in Houston.

You can also have a lower base price for, say, 4 people, and then charge a particular amount for each additional person. So maybe you offer the house for $400 a night for up to 4 guests, and then you charge an additional $40 a night for every additional guest. If you have 16 total guests, that's another $480 per night. (Though to be honest, I'm not sure how many Super Bowl attendees travel in groups of 16.)

If I were you, I'd ask myself how much money per night it would justify turning over my entire house to a group of hard-partying strangers, and then I'd start calculating your price from there. It's hard to know for sure, though you can always adjust your price if you reconsider down the road.

Hope this helps. And I hope you guys find the pricing sweet spot so you can rake in the bucks when the Packers come to Houston to beat whoever ends up losing to them. 😉

Carl & Diane

Casita de Milagros

https://www.airbnb.com/rooms/14149841 

[Linda108]

Hello @Brenda54  Welcome to Air BNB!  Are you planning to only rent during the Super Bowl?  I looked at your listing and hope you find a few comments helpful as I like to be supportive of new hosts.

1.  Your home page picture is not the best one for catching people's attention.  You have a nice exterior picture of your lovely home that projects a good image.  When you can, go for the free professional photographer and you will think you are in a magazine!

2. You have Instant Book on and if you can turn it off I would advise you to do this.  You will want to vet the large group of people coming to the Super Bowl and Instant Book does not allow you to do that properly.

3.  I recommend you add a substantial Security deposit as soon as possible.  Even great guests can cause a lot of damage and you need to be able to cover costs.

4. You are trying to sound welcoming in your description and house rules, but you might want to look at other comparable listings and beef up your rules.

5.  There is a Houston Home Sharing Club for hosts and you should look into participating.  It would be useful for getting local information and support.

6.  You have gotten great advise from @CarlandDiane0 and @Linda0 which is why this Community Center is a great asset.  I do encourage you to nose around all the hosting articles in the Help Center and perhaps follow a few of the discussion thread in this forum.  I know it has widened my understanding of this business a great deal.

[Linda0]

Thank you @Linda108 -- you have offered excellent advise for all of us, and especially to @Brenda54 as a new host because you took the time to review her listing and encourage her discountinue instant book and to beef up her rules, and deposit fee on her listing(s).  I agree wholeheartedly on all counts.  There is definitely a learning curve to hosting, and adjusting your own personality to meet/match those of guests you will be receiving in a shared environment, and as well in your listings where you are not a live-in host.  New hosts do need to get a few guests interactions before taking in guests without vetting first.  And, rules are a must, do you allow smoking, shoes, cats, dogs, snakes, infants, children, cooking, washing clothes; the list can go on and on.

Hosting is really fun, but it comes with challenges that can be managed.

Linda J