smart pricing/pricing in general

[Cibyl0]

I've had my cottage on airbnb for about 3 years now and I'm consistently a superhost as well as consistently receive 5 star reviews. But I'm starting to feel my pricing is too low for what I offer in terms of amenities, location, service, ambience (my garden is a huge feature of the cottage).

Does anyone have any advice about not just "smart" pricing, but realistic pricing for a gorgeous, unique space in a prime neighborhood?

[Ali40]

Smart pricing is anything but smart. It's always super low for my area. Look at what other comparable listings in your area are charging for what they offer. Price your listing competitively. Don't be the highest or the lowest priced listing in the area. Keep tabs on weeks, weekends, times during the year when there is an increased demand for lodging in the area. I live near a large university, and my prices are higher on football weekends, homecoming weekend, and graduation weekend. Also weekends that include a monday holiday, I charge a weekend rate for the holiday Monday. 

[Tim-and-Holly0]

@Cibyl0:

Begin raising your price. Three things will happen once your rate gets too high- The number of your bookings will decrease, your value ratings will drop to 4 on occassion, and you may start dropping lower in the search rankings.

To start with, check rentals around you for their pricing to stay competitive then raise your price $5 or $10 per night. If none of the above three things happen after a couple weeks increase your rate again and continue to do so until you see one of the three happen. You may need to fine tune the final rate and adjust it for seasons, weekends, etc, but you will be fine.

We have two houses and have gone through this process for both of them. Our first house we have only been able to raise $12 per night from our starting point before the value ratings begin to drop. We keep it at a price that gets an occassional 4 for value, but not enough to show less than 5 stars and we stay fairly well booked.

[Jessica-and-Henry0]

I'm still a new host and when I was working on putting up my listing, I was shocked and actually insulted by the Airbnb suggested price. (Which was (is) at 60% level of the price I decided on. FYI, the recommended price was the same as for one bunk bed in a 4~6 person dorm room at a backpackers guesthouse.) 

I did some research to decide on a price range I thought is fair for what my listing provides. I especially looked at other listings near me and average prices depending on different types of listings. I also did some simple calculations based on several scenarios (this was all before I started hosting so I had no idea how many bookings I'd end up getting - I just assumed 50% or less.) 

A/ one 2-night booking per week per month

B/ two 1-week bookings per month

C/ two 2-night bookings and one 1-week booking per month

D/ one-month long term booking

Then depending on different prices, I played around with different weekly and/or monthly discounts to see if what I'm charging is enough to at least cover monthly hosting costs & expenses (additional water/electricity, more laundry & cleaning, emergency funds etc.) and what kind of profit margin (if any) I would be able to expect for my work as a host.

I still continue to check pricing trends of listings in my area regularly, and depending on my reservation status, I reflect adustments in the pricing and minimum stay booking requirement. 

If you feel your pricing is too low, then you are probably right 🙂 If you think a sudden increase will affect your booking rate, you could plan to adjust your prices every 3~6 months or so by a small amount (say $3~5 hike for weekdays, $6~8 for weekends) over a 1~2 year period so that in a year or so you are at a price level that you feel is right or continue to tailor it to your liking and depending on the reaction (booking status) of guests. Good luck~!!!