Hi all,
As some of you know we had a master class on Airbnb pricing last week.
Thanks to everyone who registered and attended. In case you were not able to make it, here we go with a summary.
- We’ve covered Airbnb pricing strategies with pros, cons and live examples.
- Also, we have outlined Airbnb pricing management options for hosts with an overview of each.
- And finally, we had an interview on Pricing with Ian McHenry, CEO of Beyond Pricing.
The text summary, video, and presentation are here for you.
Just to quickly summarize the 4 pricing strategies our clients use let me list them here:
1. Maximum fill-rate
This strategy entails that you do your best in order to be competitive when it comes to the pricing. In order to do so, you have to provide at least the same value as your competitors. In other words, you want to squeeze out the absolute maximum in terms of filling your rentals.
2. Maximum Rate Per Night
This is another known Airbnb pricing optimization strategy which comes with its pros and cons. It is going to require you to set visibly higher rates in order to increase the overall net profit from a single booking.
3. Long-term rentals
This is usually something that a lot of Airbnb hosts refer to as lazy hosting. It predominantly relies on the premise that you would be able to host out your rental for a longer period of time. You will be renting out at monthly rates and deal with the same customer for a longer period.
4. Balanced Airbnb management
This particular approach targets the earning of maximum revenue by using all of the aforementioned strategies. This is going to provide you with a maximized profit as well as high fill rate.
Apart from the theory, we shared some stats that can help you with pricing your vacation rental.
• An approximation of 86% of the hosts are actually applying cleaning fee
• About 59% of Airbnb hosts require a security deposit.
• 44% of the hosts charge additionally for extra guests
• Hosts are averaging 17% off the booking rate and 28% off the booking rate for monthly discounts.
So, if you are interested in the topic, go ahead and see all the content we shared.
Thanks for your attention and wish you a wonderful day!