All of us have to admit that many Airbnb hosts draw blanks when it comes to proper pricing -it really is one of the most challenging aspects. Things like market demand and competitor behaviors are often overlooked and some hosts usually go with their gut feel for their prices.
That is why we came up with a list of pricing strategies for your Airbnb listing. To begin, it's important to do a bit of research and at least understand the basic information about competitor listings in your area, travel trends for both business and leisure trips and some guest preferences on amenities. A dipstick into these information buckets should be a good start for you to decide on your Airbnb listing price.
Don´t put up your price too early.
You need to set your apartment's price below the market price to capture initial bookings. You can't directly compete with other long standings listings as they already have a full blown list of reviews to show guests - you're going to have to slowly build yours first.
Slowly increase your listing price
After you've collected a fair bit of reviews, this is your chance to increase your price. If you keep your price down for too long then you might already be missing out on profits.
If you enjoy very high occupancy for extended periods of time, it does not necessarily follow that you are maximizing earnings - people could be choosing you because of your low price (when they may be willing to pay more) so you're technically leaving money on the table.
Do some research
Understand how other hosts with properties similar to yours (size, number of bedrooms, style, amenities, etc.) and in relatively the same area are pricing their properties. We're serious here. It takes time and effort to effectively learn how to price your Airbnb property and know it's true worth (Based on how the market is reacting to it).
As you learn about the similar properties around you, you learn about your direct competitor. Very important to know who you are up against. Likewise, also do soem research about some of the best or most loved properties on Airbnb and see what effectively awesome things they are doing that wow their guests. Follow those.
Here's a neat hint
If you are the type of hosts to offer a little something extra to your guests, then do not be ashamed to charge higher for that. Some Airbnb hosts do that to add value to their service and often, guest will love this extra touches.
Timing is essential
You must always keep note of seasonality, dips, and highs in travel trends for tourists, even weekday and weekend prices should differ!
Weekdays Vs Weekends
There is a reason why hotel prices go up during the weekends, and why they tend to skyrocket during LONG weekends -it's because that's when people get out and travel. Simply put, demand increases during weekends.
Tip: if you are keeping to the same price for weekdays and weekends, then we don´t think you're really doing it right.
Know what's on
It is also important to know what big events are happening in your city that would be likely to draw a bit [international] crowd - either for leisure or business (e.g. leisure events like concerts, musicals, local festivities, worldwide happenings like F1, the Olympics; or business events like conferences, seminars or exhibitions).
It's a tough climb to setting that perfect price for your Airbnb property. it really requires a lot of time and effort, however, with Vayoo for Hosts, this difficult task becomes much easier.
Vayoo is the first mobile App that helps Airbnb hosts to increase their monthly revenue by suggesting, among others, the right price for your property. Vayoo takes into account the listings in the area, hotel prices, holidays, events, etc. and analyses it together with other relevant information like historical occupancy, the day of the week, and other data.