Do you think I will be able to price my 1-bedroom apartment higher than the nightly rate of other 2-bedroom places in my area? My 1-bedroom is huge, has super high ceilings and is a very rare property because of its extraordinary historical features, decor, and architectural details… plus it has a brand new bathroom and a high-end kitchen. So it’s definitely a unique property. But how much more would guests be willing to pay for it? I’m thinking of pricing it at a rate that’s double the nightly rate of the average 1-bedroom in the area… and about 30% higher than the rate of an average 2-bedroom in the area… So for example, if the average one-bedroom in my neighborhood is $100 a night and the average 2-bedroom is $150 a night, I’d list my 1-bedroom at $200 a night. I know some guests will love it and will book, but will I be able to achieve a 80% occupancy rate and get it booked 24 days out of each month? And if so, what sort of guest will be willing to pay double the rate just to stay in a stunning and rare home? It’s a gorgeous place and I’m pretty sure there’s nothing like it in my city on Airbnb, but after all it’s just a 1-bedroom. So again, will there be enough demand for that sort of place and by whom? When I travel I’m hardly ever inside my hotel or Airbnb room or apartment and I personally would want to optimize my budget and not overpay if I knew I could get a decent 1-bedroom for a better price, albeit it being smaller and not so luxurious. And from my experience hosting, many guests just want a clean space in a convenient location at the right price. In a time when luxury industry segments are closing doors left and right, how do one-of-a-kind high-priced Airbnb listings perform in terms of bookings?
Too many unknowns in your question. If the property is unique but the guests are not you probably can’t get 30-100% more than comparable properties.
Where are you? I’d probably pay more for something cool in historical in a place like New Orleans… but otherwise, I want budget priced and convenience. Which is why I’d be more likely to book a hotel…
@KKC do you mean if the guests are not unique? Who would be a unique guest? And why would a unique property be comparable to ones that are the same size but not unique? What else is an unknown here in your opinion?
@konacoconutz, interesting… why would you pay more for something cool and historical in a place like New Orleans?
I cannot speak for others, but I would pay more for a historical place in a city that is famous for historical places. New Orleans has lots of incredible architecture and a very well known party district. I would not pay more for a historical place in Toledo, Ohio (even though I’m sure there are lots of beautiful historical places there) because if I’m going to Toledo, it’s probably not to celebrate Mardi Gras. You have to think about why someone is visiting your location and what they are looking for when they get there.
If your place is truly lovely, you might want to look at local boutique hotels for price comparison and market your listing in the same way they do (you know, rose petals on the bed, high end toiletries, 800 thread count sheets …)
I think that some traditional luxury brands may be suffering but those that one could call “modern luxe” are going from strength to strength. The neighbourhood does matter, too. It’s like Estate Agents (realtors?) say when you’re selling - you can’t price your property more than the location will bear.
So if you are in the right location for it and you are wanting to price your place so much higher than others in your area, then everything has to be perfect: marketing (photos, website etc) views, decor, amenities, service …if you can hack all that, I can’t see any intrinsic reason why your fabulous one-bedroom shouldn’t be priced higher than a so-so 2-bedroom. I just think it will take quite a lot more marketing effort …
Don’t look at the 2-bedroom places to try and value yours. Your target market simply isn’t the same! They will be looking for families and groups of friends and pricing for that. You on the other hand want honeymooners and couples in general willing to pay for luxury.
Your competition therefore is anyone else with a high-end one-bedroom (even if it’s not as big as yours) and hotel/B&B rooms which have high-end features such as a suite or kitchen or private balcony etc.
Look at what they offer and match it. For example quality furnishings, sumptuous welcome items, great quality toiletries, and make sure they’re all shown in your listing photos. In fact I would almost say you have no choice but to make yours a luxury offering. You will NEVER get a premium price just by being bigger, or indeed, just by having pretty windows and high ceilings. You need to offer the whole package (which includes the way you write your listing text).
Nobody can answer the question as to occupancy, by the way. It’s even difficult to tell your competitions’ occupancy levels as sometimes they have personal reasons for certain days to be booked out.
A guest who values things like “architectural details” or “high end kitchen.” The sort of guest who is willing to pay double to stay in a “rare home.” What makes all the difference in the world is why are people coming to your town. [quote=“skylar, post:4, topic:8134”]
What else is an unknown here in your opinion?
What is unknown is where you are, why people come to your city, what the other listings are in your city, what prices are like where you live. You say you’re pretty sure there is nothing in your town like it but you probably should be sure before you double your price.
Why don’t you post your listing? We have no way of telling if you can get double without seeing it.
Yesterday I posted what I thought was a stunning listing in my town for $50 a night. Forum members chimed in to call it a “McMansion” and worse.
what town or city are you in?
What have you got to lose? Give it a go, describe it as you have here and don’t apologise for it. If it doesn’t work, drop your price.
My Airbnb (2 bedrooms apartment) has nothing high-end or exceptional but it’s definitely prettier and sleeker than the competition and I am able to charge more than units of the same size and about as much as 3-bedrooms apartments.
Appropriate marketing, nice decor, nice photos can do a lot !
I would myself be willing to pay more for good decor and/or an historical property.
What! Your place is awesome!!! It totally looks high end!
Hehe thanks for the compliments @konacoconutz ! When I imagine a high-end place I think of a Four Seasons experience with loads of italian marble, silk cushions and white orchids, but maybe I should stop reading so many interior design magazines