Good morning everyone,
I have been interested in creating my own Airbnb house. But for my business plan I have a doubt that I need to solve before doing anything. Is it my impression, or the prices dropped so much this year? I know that the Covid-19 has crushed hard in terms of reservation but it is also true that it reduced the prices for this summer at the 50% more or less?
Thank you very much!
Welcome to the community 😊
You are correct on some point.
Yet, you may consider not to drop your price to half.
Did you know how the Airbnb ‘smart pricing’ system works?
Smart Pricing lets you set your prices to automatically go up or down based on changes in demand for listings like yours. Smart Pricing is based on the type and location of your listing, the season, demand and other factors.
As links below, the smart pricing may help you to motivate the listing price.
How do you turn on or off innovative pricing?
Setting pricing strategy
Spain is always one of Europe’s best desitattion to travel.
Happy Hosting ✌️
Way to go!
@Marc8026 don't listen to Dale and don't use smart pricing.
Look at your competitors in the area, how much they charge and how are they booked then compare. If there are no tourists then the low price will not help much, but it can attract bad guests.
I didn't lower my prices although Zagreb is empty, but I still get some last-minute bookings occasionally, the same as others with bottom low prices. I would rather stay empty than risk and work for nothing
Good luck. At the moment where we are, Canary Islands, there is no shortage of supply and near zero for demand. And almost every option is top class at extremely low prices. With Spain humming and hawing about the need for masks in schools and universities or even if they will open them again next year and the never ending cycles of emergency law changes, Spain is just not attractive to travel at the moment. Further, there just are no planes in the sky. Used to be every 5 minutes you could look up or across the water and see a plane on take off or landing. Now your lucky if you even hear a plane in the sky anywhere on our island on a given day. Even the military planes and helicopters are rarely flying. Plus the discount airlines are just not discounted anymore if they are flying and landing here. If a guest does make it to Spain they will have already paid 30% of their trips total costs on private laboratory reports, delays and flight changes or cancellation issues. We are happy when guests do finally make it. Our bills get paid by long term guests looking for work and housing, backpackers, weekenders and especially students. Students either on vacation from their studies elsewhere or who are planning to study here. With the Erasmus program almost completely stopped and campuses going online the number of students traveling to school or on vacation is almost zero. Also, with a huge supply of vacant properties and extremely low prices, unless your front row at the beach or absolutely unique you are going to have to wait till the discounted hotels and all-inclusive resorts have filled before you will see the traffic of guests that goes beyond just keeping the lights on. Don't quit your day job until and If you can keep the lights on! If you do relatively well during this pandemic then you have a good chance to really enjoy the boom if it ever returns. Here, prices of goods and services have also risen significantly in Spain and here in the Canary Islands. Power, water, wifi and groceries especially have risen from 100 to 800% in costs. Relative to what you would pay for something in Germany our prices in the Canary islands look cheap however the average earnings here are 3 an hour and that is assuming your in the lucky 20% of the population who has a job. So pre-pandemic here used to be as cheap as Thailand to live and work. Now its German city expensive for costs of living with Thailand wages and opportunities for locals. Expect if you are planning to make a rental in Spain that your earnings to expenses is now as high as 80% of earnings goes to costs. This leaves very little for profit and doesn't solve for the bills that come every month if you have guests or not such as WIFI, Taxes and Fees. Every supplier here has slashed prices to almost bankruptcy levels and without any demand most have folded. If I could give you one hint to help if you are going for it - WIFI. Get an unlimited WIFI plan, make it so easy - no password - and make your place as comfortable as you would want if traveling. When guests do come they will stay and then stay longer 🙂