What determines when it is appropriate to increase the price of a listing?

in
Fort Wayne, IN
Level 2
215 Views

Recently, I have taken a look at different aspects of our listing and am curious what others use to consider raising your nightly listing price. We have been a Super Host for three years and have a 4.98 rating. Our home receives Instant Bookings, Booking Requests, and Inquiries regularly. I have done a comparison of like homes in the area and have discovered our price is less.  One aspect to consider is that many of the others only have 1 to 1.5 bathrooms but ours has 2 full bathrooms. For this reason alone, I wonder if it is worthy of raising the price. I realise there are many variables but would like to hear from others on perhaps a checklist they use to determine when to raise the nightly rate.

 

 

Kind regards,

Denise467

 

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Accepted Solutions

Re: What determines when it is appropriate to increase the price of a listing?

in
England, United Kingdom
Level 10

@Denise467 A complex question that seems so simple.

 

Some people use Airbnb as a lifestyle add on so actually quality/type of guest is more important than price. Of course a low price can attract poor guests so even here you should not go too low on price.

 

Others want to maximise their profit which doesn't necessarily mean revenue and certainly doesn't mean nightly price. A high nightly price may attract slightly fewer bookings but may increase your profit as costs/wear and tear will be lower.

 

If you are almost fully booked then try a 10% price increase. As long as your booked nights do not drop by more than 10% then in simple terms you are winning

 

Oh and by the way, for any newbies reading this. If you are anywhere near Airbnb the price tips then you are way too cheap.

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6 Replies

Re: What determines when it is appropriate to increase the price of a listing?

in
England, United Kingdom
Level 10

@Denise467 A complex question that seems so simple.

 

Some people use Airbnb as a lifestyle add on so actually quality/type of guest is more important than price. Of course a low price can attract poor guests so even here you should not go too low on price.

 

Others want to maximise their profit which doesn't necessarily mean revenue and certainly doesn't mean nightly price. A high nightly price may attract slightly fewer bookings but may increase your profit as costs/wear and tear will be lower.

 

If you are almost fully booked then try a 10% price increase. As long as your booked nights do not drop by more than 10% then in simple terms you are winning

 

Oh and by the way, for any newbies reading this. If you are anywhere near Airbnb the price tips then you are way too cheap.

Re: What determines when it is appropriate to increase the price of a listing?

in
Fort Wayne, IN
Level 2

Thank you so much for your response.  This is helping me clarify our purpose for sure which leads to the correct pricing. @Mike-And-Jane0 

 

Wonderful for you pointing out the price tips, too.

Re: What determines when it is appropriate to increase the price of a listing?

in
Orono, ME
Level 10

@Denise467 I have never been to Indiana and I have no idea what the costs are like there. But consider this: If I rented your house with 5 of my buddies for a weekend in November, it would cost $24.50 per person per night. That is the total cost per person ... all taxes and fees. Now walk through your house and picture my group making a full meal in the kitchen, spreading out in the living room, taking two showers at once, washing a load of clothes, relaxing in the fenced backyard, sleeping in private bedrooms on a real mattress, etc., etc., etc .... all for under $50 a weekend. Does that seem too cheap to you? If yes, then raise your prices.

Re: What determines when it is appropriate to increase the price of a listing?

in
Fort Wayne, IN
Level 2

@Emilia42 I so appreciate your scenario and can relate.  This is helpful as well.  Goodness!  Also, it is our home and not a rental property purchased just for Airbnb.  We're out of the country a lot and intend to reside in it permanently when the time comes.

Re: What determines when it is appropriate to increase the price of a listing?

in
Arkansas, United States
Level 10

@Denise467 

I think you could raise your prices in 10% increments until you notice a reduction in bookings.

 

It is generally recognized that if you are usually fully booked your price may be low.

 

For several reasons it is more profitable and less stressful to book 4 nights @$150 each than 6 nights @ $100.

 

There are a number of intangible costs to consider, such as depreciation, cleaning products, consumables, and your own time. Combining all of these will make the higher price/lower occupancy rate much more profitable.

Re: What determines when it is appropriate to increase the price of a listing?

in
Fort Wayne, IN
Level 2

@Brian2036 @The intangibles are definitely a big portion to consider. Less stress for everyone involved is also a good point in fewer bookings but higher profit in the long run. Thank you for sharing. 

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