Property classification.

[Deborah82]

https://www.airbnb.com.au/rooms/11361884

Serenity Cottage.

I have the above property listed on Airbnb. I have it listed as an entire home because - well, that's what it is. They get the whole property.

The cheapest 'entire home' listed in our area is $168 per night. It's an historical town, and we get many tourists through because of this and our wildflower season also. 

Even though I've ticked the box that stipulate entire house/apt the www address has the word 'rooms' within it.

My question is this: is this why Airbnbs' Smart Pricing keeps suggesting that the price I have of $70.00 per night is too high for my area? It keeps trying to recommend around $58.00 instead. This seems to be a room price.

Is there anyone out there that can assist me in resolving this issue please? I'd really like to continue using the Smart Pricing as we have a few 'high' seasons and I'd like my property to be viewed like for like. The theory behind the pricing system is a good one, I'm just not sure it's picking up the correct information when it's doing it's algorithm thing. 

All suggestion gratefully listened too.

Deborah.

Loving our Airbnb Community❣

[Chad7]

Sorry you have issues with smart pricing bit after my conversation this week with AirBnB, even my phone help suggested never using it and said most of company "helpers" agreed. I personally do mot like a program selecting prices for me. I posted a lengthy reply early regarding price setting and how I approach it (we have very large seasonal swings in demand as well as many special events). I have looked at smart pricing and it is substantially off in price because it does not take into account very well the variances in uniqueness, reviews, quality, amenities, etc.....all the things that make you rental so special to you since you are hosting.

As an aside, rather than look at other properties (except in general to ensure you are not $500 and all others of equal size/quality are $50!), try to get a feel from what a commercial property with multiple rooms might be going for for a specific period of dates.

What makes AirBnB so special is the uniqueness of each property listed. Given no 2 places are the same, I find it difficult to think any computer programming can adequately recommend your pricing point.

Just my thoughts but hope it helps a little. Chad

[Tim-and-Holly0]

"Even though I've ticked the box that stipulate entire house/apt the www address has the word 'rooms' within it"

Don't worry about the URL with the word "rooms" in it. It is just the address pathway. Everyone's listing URL has that in it regardless of the type of rental.

As for pricing, look at your competition and price competively, then fine tune from there to balance out the type of renters you desire with the ratings. That is not to imply any "type" of guest is bad. However, if you are pricing high and getting lower than 5 stars you may need to adjust the pricing or make changes around the house to get to where most of your guests give the proper ratings for your listing. It took about three months for us to figure out our pricing strategy.

Also, do adjust prices for seasons too. Take advantage of the times you can make some income and set it back knowing that other times of the year you may be empty, but still have to pay the bills. In our area we have one time of year that almost every room in town is booked. We adjust our prices accordingly and we're already 100% booked for that time next year despite the higher price. It will go a long ways come next summer when travel to our area is at it's lowest for the year.

[Danny9]

@Deborah82

True, the word 'rooms' is simply an URL pathway. I am also listing two fully independent properties (apartments) and the 'rooms' is there in the URL patway, too. 

https://www.airbnb.com/rooms/5265336/

https://www.airbnb.com/rooms/8548034

Now, I do have a relatively good experience with the Airbnb smart pricing. Their algorithm is getting better by the day. No doubt, they have still got ways to go, but they are on the right path, at least judging by my experience. 

Now, Smart Pricing is there to secure the highest turnover for the Airbnb, and NOT necessariliy protect the individual interests of the hosts. 

I started hosting last year, and went a bit below the market in order to attract bookings, generate reviews, etc. My one listing was booked solid, there was some income coming in, too. But the cost of repairs and maintenance made the whole exercise a good business for the Airbnb and NOT such a good business for me. I fully recognize that I set the pricing, and that I am fully responsible for the consequences of my decisions. How could I blame the Airbnb for trying to make the most of it? Wouldn't i be doing the very same thing if I were in their shoes? 

Now, I own my listing, and I am setting the prices. Sure, smart pricing is a welcome recommendation, but I call the shots. At times, I have noticed that the smart pricing recommendation goes way below of what would make any sense for me. So, I simply keep my pricing as it is. At times, I rent. At other times, I do not. But MY margin has improved considerably. Higher pricing, lesser wear and tear, fewer repairs. Less work related to organizing all those tedious works with handimen... 

A good idea would be to look into the pricing matter in some detail. It is pretty easy to figure out what your rock bottom price is. It also makes a lot of sense to keep on increasing the prices with the increase of the demand for your listing. Why would you want to have a 90pc load factor if you can make the same income with a 70pc load? 

You take care of your listing and your margin. The Airbnb and the guests will certainly take care of their interests, too!

Danny

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