During my travels, I often stay at Airbnb apartments across the globe. Since I am a host myself, I pay close attention to various aspects of the listings I peruse.
One of those aspects is price. Over the last few years, I have noticed that most hosts have a fixed daily price regardless of the day of the week or month. This is highly surprising. Why?
Because failing to shift your price in tandem with demand causes hosts to miss out on financial gains. By pricing your space dynamically, you can increase your revenue significantly. Here are three quick tips on how to do this effectively.
1. Adjust Your Prices According To The Day Of The Week
Depending on the location of your property, your peak periods will either be during weekdays or weekends. For example, if your area is frequented mostly by tourists, weekends will typically be more popular. On the other hand, if your neighborhood is within a business district, weekdays will be in higher demand.
Figure out your peak periods and set your price accordingly. My apartment, for example, is very popular amongst tourists. It’s nearby a bevy of awesome restaurants and pubs, and is ideal for foodies and partygoers from across the globe. Accordingly, the weekends are in high demand. I always scale up my weekend prices by approximately 20% to match the heightened inquiries.
2. Spike Prices For Special Dates
Be aware of demand deviations that occur during special holidays, such as Christmas, New Years Eve, and various national holidays. Also, be on the lookout for large corporate conferences that take place in nearby convention centers. During these periods, hotels will likely be overbooked and overpriced, making a pleasant Airbnb rental very enticing.
Depending on the particular event, you might be able to earn double your normal rate. An excellent way to gauge these fluctuations in demand is to search for a hotel on a major booking site (such as Booking.com) and determine the percentage of fully booked hotels. For example, Booking.com will show the number of available hotels immediately after the search query is ran.
3. Reduce Prices For Last Minute Bookings
If you have any unoccupied dates coming up in the next few weeks, you should drop your price significantly. Why? Firstly, you are substantially less likely to receive inquiries for nearby dates. Secondly, most of your costs from your Airbnb business are fixed. Having guests stay at your house barely increases your marginal costs. A low rate, therefore, is better than leaving your space unoccupied. Finally, you can earn yourself a valuable review, which will positively influence future bookings.
New to Airbnb? Sign-up now and get $25 travel credit!