When to raise daily rate?

[Kathleane0]

I'm two months into hosting on ABnB. I have five 5 star reviews. My prices are in line with those around me, but on the low end of that spectrum. My minimum stay is 2 nights. Last month I had 100% occupancy, this month (so far) I have 80% occupancy. My question is, is it time to raise my prices? I know I could experiment, but I thought I'd ask here first for feedback.

[Mike-And-Jane0]

@Kathleane0 You could raise your rates or perhaps do something to make life easier for you such as increasing the minimum number of nights that can be booked. We would have done both as 100% occupancy would be too much for us.

[Elisa]

Hi @Kathleane0 😊, 

Thank you for raising this topic in the community; it is really interesting!

Did you find out what to do?

I can mention a few experienced hosts who will probably know how to advise you on this: @Elena4354, @Zheng49, @Frances3408 and @Guy991.

Thank you in advance, everyone!

Warm regards ‌🌻‌,

[Zheng49]

I would raise the daily rate as applicable if you notice Guest quality is declining or is already low. Otherwise I'd leave it.

It may be good to increase the rate temporarily for certain weekends/holidays if you notice your listing's price is lower than everyone else. 

I adjust pricing to make it desirable for the guest(s) that I want to host, but less desirable/not desirable for the guests that I don't want to host. This is especially important for listing(s) like mine that allow instant booking without any conditions. 

@Elisa @Kathleane0 

[Frances3408]

@Kathleane0 @Elisa  . Hi Kathleen if you are at 100% you are probably too cheap!. Seriously, six bookings is fairly early in so I'd get a few more if you can handle the pace. After that yes as suggested by @Zheng49 , maybe experiment in high demand periods with higher prices, increased minimum nights and availability settings. Keep an eye on your budget and know your profit per stay, especially with overheads like power.

[Abu215]

Congrats on your success! With five 5-star reviews and high occupancy, it’s worth considering a small price increase, maybe 10-15%. Monitor your bookings after the change to see how it affects occupancy. Good luck!

[Alicia753]

Hi Kathleane,

It sounds like you're in a great position to consider raising your prices, especially since your occupancy has been so high and your reviews are solid. High occupancy can indicate that you're offering great value, and if you're on the low end of the pricing spectrum, there's room to increase rates without risking too much.

You might want to gradually raise your prices, especially during high-demand periods, and see how it affects bookings. Seasonal factors, upcoming local events, and competitor pricing are all good indicators of when and how much to increase. You can also experiment with tools like dynamic pricing to help optimize your rates (Pricelabs). With five-star reviews and strong occupancy, a slight price increase could enhance your revenue without significantly affecting demand.

I hope this helps.

All the best,

Upfish Management

[Elisa]

Hi @Kathleane0 😊,

Have you found a solution?
Our Hosts shared great advice with you. Did you get a chance to review it?

I look forward to hearing your thoughts!

Thank you so much @Abu215, @Zheng49, @Mike-And-Jane0 and @Frances3408  for helping!

Warm regards 🌻