Setting rental price: You, or Airbnb?

[Trinity-And-Cristina0]

Just wondering how many hosts out there set their own rental prices, or do you let Airbnb decide the cost for you?

discuss 🙂

[Victoria57]

@Trinity-And-Cristina0, I certainly do not let Airbnb set the prices through smart pricing as that tends to drive the price down. It works for Airbnb because they get a higher volume of bookings but it works against the individual host. A host knows their location, the festivals and other events that might justify a higher (or lower) price for a particular week or night, the services offered and the competition in the area. Airbnb knows none of this so although I look at the price tips I set my own prices.

[Sharon114]

I agree Victoria.  We set our own rates and have found that, as you said, airbnb suggest rates that are far too low.  We know our own area and competitition and set our prices accordingly.

[Helen3]

What do you do @Trinity-And-Cristina0 ?

The prices BNB suggests are so off the mark - anyone would be crazy to use them. Far better to look at what those with similar properties and facilties are offering.

[Trinity-And-Cristina0]

Hi @Helen3, we usually set our own prices, dependant on what season it is, and compared to other listings in the area...but during low season, I like to see what Airbnb suggests for pricing (but I usually end up raising it a little higher than it suggests, because sometimes the prices are just ridiculously low) 

[Sharon64]

I set my own prices. I know when the season is in here in Florida; when and where the festivals, shows, conventions, etc. Airbnb knows nothing of the area.

[Jane159]

I have used their automatic pricing during low season, but made sure that my minimum price is appropriate in relation to that season and prices of other establishments in the area. It worked fine.

[Cynthia-and-Chris1]

I do the same thing ^^

[Ken-and-Mark0]

Hello T&C,

We've done a lot of work on our prices.  We keep extensive statistics on enquiries, bookings, lead time, LoS etc etc.  We have trialled the Airbnb pricing tool....and well.....it's complete rubbish.  It wants to often rent our 5 bedroom inner city house (walking distance to the city centre) that can sleep 14 for AUD $250 a night.  Where it gets these ludicrious prices from is anyones guess but at rates like those that Airbnb 'suggest' we would be (far) better off getting a long term rental tenant.

Invest some time to look at what other listings in your area that are similar to your are charging and look at their calendar.  You'll soon get a a sense of pricing.  We also spent some time looking at hotel pricing and following their pricing trends.  The alternative is to get other third party pricing suppliers to set your rates.  We trialled one of these and it worked well for certain listings, i.e., it worked well for our apartment rooms (private rooms) but not for the whole house rentals.  Google 'Airbnb picing' and you'll find some suppliers.

K&M