New host - still working on pricing

Bex9
Level 2
Victoria, Canada

New host - still working on pricing

Hello everyone,

 

I don't find the smart pricing to be very effective - it seems to be either too low or ridiculously high with different prices everyday at at times. I understand its an algorythm but I think it would look insane to a potential guest.  I was thinking same price for mid week days with slightly higher rate on weekends.

 

Interested to hear if you use this strategy and is it working out for you - I know it takes some time to be up and running I am just trying to price reasonably without being greedy but not a "bargain" as I'm not looking to attract "bargain hunting" guests.

Many thanks!

 

Bex in Beautiful British Columbia

10 Replies 10
Letti0
Level 10
Atascosa, TX

I use this strategy: my weekend prices are $30 more per night than my weekday prices with no minimum stays required and holidays I do minimum stays of 3-5 nights and my price is $20 more than my weekend price. I am priced a little higher than a lot of comparable size homes in my area, but my amenities by far exceed theirs, so bargin hunters won't book me and I offer no discounts except a military discount of 10%. It works for us, but be forewarned we do not book out far in advance for the most part. Yet we get booked a lot at the last minute and end up with the same amount of days booked as the bargin places that book out months in advance. In part we are usually one of the last homes left for large groups and families, so it's us or nothing. We do a lot of BMT graduation bookings, which are all mostly within two or three weeks of the graduation date for 4 or 5 days each and a ton of familys going to SeaWorld at a week or so notice.  

Thank you for your input Letitia, great strategy

Barry-and-Lera0
Level 10
Sarasota, FL

@Bex9: If you treat your Airbnb like a business then you have no need for "Smart" pricing (which to me is not very smart). You should change your rate based on what you see and what happens in your area. The times when people travel, the events they people come into town for, etc. Like @Letti0 we are priced $30-$50 more a night than most in the area of similar size but we go above and beyond the typical sparce rental space.

Thank you Barry and Lera

Letti0
Level 10
Atascosa, TX

@Barry-and-Lera0 You were actually able to tag me. I wonder if it's fixed. Like you we go above and beyond. I feel my pricing is fair based on what they get for the money. So far knock on wood, I have only 5* reviews, except for that dang location one. 

Barry-and-Lera0
Level 10
Sarasota, FL

@Letti0: We believe our pricing is fair as well when you offer amenties that most are not. It has not hindered us from booking 200+ nights year. 

 

The LOCATION is the wild card. We are in the downtown area of Sarasota but only 3 miles from 3 different world class beaches. We get a 4 star rating every once in a while becasue we are not "on the beach". If people want to be on the beach they need to book a beach house. Seems simple enough, but apparently it is not.  

John-and-Tim0
Level 4
Palm Springs, CA

@Bex9, we have created a separate iCal calendar for local events.  This is a great tool to aide in setting pricing for your listing (and just for the record, the smart pricing tool is not a good tool at all).  For example, you'll want to charge premium rates for the Internationl Jazz Fest.  @Letti0 and @Barry-and-Lera0 are right.  You need to tier your pricing; e.g. weekday, weekend, festivals, holiday, etc.  Another great thing about that type of event calendar is that you can suggest things for your guests to do.  Several of our guests took advantage of Great Palm Springs Restaurant Week.  They knew a few weeks in advance and were able to book some top places in town which are otherwise difficult to get into.  It's those little things that will make you stand out from your competition!

 

happy hosting!

Thank you John and Tim, that is a great idea, so the iCal is linked to your listing and that way people can see in advance cool things to do?

It's actually not linked to the listing calendar.  We have it more for our pricing strategy. I guess at the end of the day I want people to book because our property speaks to them somehow.  The fun stuff is just icing on the cake:)

 

happy hosting!

Letti0
Level 10
Atascosa, TX

@John-and-Tim0 We booked a Entire house for Desert Trip in Palm Springs the same day we managed to snag the pre-sale tickets. It was a pricier place, but what we needed and wanted. We got a bargin as the prices did go up everywhere about a week later. Two of the people in our group going were not staying with my family they waited a month or so and got a condo 1/8 of the size of house we booked with a pool for 3 or 4 times the price we paid. So for special events I do as you do and check out the future schedules of things in my area and the pricing is based on the demand for the event usually higher than my holiday pricing.