How To Set Different Prices On Airbnb

Your Airbnb pricing strategy affects your holiday rental profits more than probably whatever other single gene. In this post, we're going over some tips and best practices, to assistance you lot know how to cost your Airbnb listings and maximize your profits.

Pro Tip: The easiest way to optimize your Airbnb pricing is with a dynamic pricing tool. We recommend Wheelhouse for most hosts and belongings managers.

How Does Airbnb Pricing Work?

Let's quickly take a look at how Airbnb pricing works. The full price of an Airbnb booking is based on the nightly rate (which y'all set equally the host), plus the following additional costs and fees (via Airbnb):

• Airbnb service fee: Guest service fee charged past Airbnb—this helps Airbnb run smoothly and offering 24/7 community support
• Cleaning fee: Fee charged by some hosts to encompass the toll of cleaning their space
• Extra guest fee: Fee charged by some hosts for each invitee beyond a set number
• Security deposit: Certain reservations may independently require a security deposit requested past the host or Airbnb—observe out more well-nigh security deposits
• Value Added Revenue enhancement (VAT, JCT, and GST): Revenue enhancement charged to guests who live in certain countries—find out more than about VAT
• Local taxes: Taxes charged based on the location of the host's listing—notice out more about local taxes

Most guests are aware there will be additional costs beyond just the nightly charge per unit. So annihilation you can practise to keep extra costs low should put a smile on their face up, and make them more likely to book.

5 Tips to Amend Your Airbnb Pricing Strategy

If your list is new and has no reviews, it'south worth because pricing your listing lower than the competition to get your start few bookings. Every bit a new listing, you'll show up higher in Airbnb search, receive a special badge on your listing, and may even be featured in emails Airbnb sends to guests who are searching but haven't booked yet.

Additionally, Airbnb offers a convenient New List Promotion option, which applies a 20% discount to your listing'due south first 3 bookings (learn more than here). This is a cracking way to start getting some bookings and get those 5 star reviews. (If you want to opt out or remove the New Listing Promotion, sentry this video.)

Once you have some reviews and you're ready to offset optimizing your pricing strategy, here are v tips to help yous maximize your profits.

one. Employ an Airbnb Pricing Tool

Because the demand for your listing is constantly changing (due to seasons, weekends, local events, increased competition), it can be hard to constantly monitor and try to optimize your rates.

A dynamic pricing tool helps tremendously in this area. Using a pricing tool is the single best thing you can do to improve your Airbnb pricing strategy. All the other tips in this post are only enhanced by the use of a pricing tool, which is designed to optimize your pricing and maximize your profits.

Wheelhouse is a popular Airbnb dynamic pricing tool.

If you lot're listing primarily on Airbnb, nosotros recommend using Wheelhouse. You lot tin can read our full review of Wheelhouse or cheque out our list of the all-time Airbnb pricing tools.

2. Adjust Your Pricing for Seasons and Local Events

One of the most important factors for determining your Airbnb nightly rates are seasons and special events. For example, a property near a ski resort volition probably have unlike rates during wintertime than during the summer. Specially if that ski resort is Sundance, and the Sundance Film Festival is going on, for instance.

Pay attending to big events similar Comic Con or other conferences, conventions, concert, etc. happening in your area. Again, a pricing tool can help with this, but it's a proficient thought to make certain you're aware of what's happening in your surface area that might affect your pricing.

iii. Offering Promotions and Discounts

Airbnb allows you to create custom promotions, as well as length-of-stay and other discount. Using promotions might also crusade a boost in your Aribnb search rankings. To create a length-of-stay discount (for weekly or monthly stays, etc.) follow these instructions.

To create a custom promotion in Airbnb:

1. Go to your listing's calendar
2. Select Promotions
3. Cull your dates and prepare a discount of at to the lowest degree 10%

Airbnb recommends at to the lowest degree 7 consecutive nights, for the best adventure of showing up in search results. If you offer multiple discounts, Airbnb will multiply them rather than add them (read this article for more than information).

If y'all're using Wheelhouse, you can create several dissimilar promotions and discounts, including a terminal-infinitesimal discount, so y'all only offer a special discount when an open night is about to elapse. Experiment with unlike promotions to see what's well-nigh effective for your listing.

4. Enable Airbnb's Host-Only Fee Construction

Airbnb has a new pick to apply a host-only fee construction. In the by, there was only a split-fee structure, where the host is charged a three-5% Host Fee, and the guest is charged a ~fourteen% Service Fee. Using the host-simply fee structure, your listing will include a 'No service fee' callout to let guests know they won't be paying the usual service fee.

Host-just fee listings include a 'No service fee' callout.

For software-continued hosts and hotels, the host-only fee is mandatory. Information technology'southward worth trying it out for your listing, as Airbnb reported a 17% increment in bookings for listings using the host-only fee structure. Read this article for more information about Airbnb's different fee structure options.

I benefit of having your own directly booking website is that yous can remove this service fee altogether. And so you lot can keep the profits for yourself, or laissez passer the savings on to your guests.

v. Increase the Demand for Your Property

Last but not least is increasing the need for your property. This is basic economics, just it's worth keeping in mind. If there'due south more demand for your listing, the price will most likely go up. And the all-time mode to increase demand for your list is through great marketing. Here are a few ways yous tin begin to market place your property:

• Starting time building a following on Instagram or other social media
• SEO optimize your ain website
• Make connections and partnerships with local businesses
• Transport out email marketing newsletters to past guests to encourage repeat bookings (you can collect guest emails with StayFi)

These are simply a few of the ways you can start to increment the popularity and demand of your belongings, which naturally leads to more (and college priced) booking. For more ideas on how to market your Airbnb, check out our Holiday Rental Marketing Guide.

And for more data on Airbnb pricing tools like Wheelhouse, cheque out our post on the best Airbnb pricing tools.

This article was written as a collaborative try by multiple members of the Floorspace team. We're a group of cyberspace marketers and designers, with a wide range of feel marketing and managing short-term rentals.

Source: https://www.getfloorspace.com/airbnb-pricing-strategy/

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