This might apply only to our “State-side” hosts, but just wondering if due to inflation and its impact on overhead costs, is anyone raising their booking rates?
No.
I did raise them a little, about 5%, due to high demand over the holidays. I may lower rates again if things slow down. I’ve had enough requests from prior guests over the past few months that it’s a little complicated to figure out what true demand would be if I just opened my calendar and operated as I did pre-pandemic.
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Increasing due to inflation? Sort of yes, sort of no.
My property taxes, insurance, & HOA fees increased so I need more $$ to make margin. However, prices in my area are predominantly market driven. Last summer supply did not meet demand. The Hampton Inn (1.5 miles from ocean) charged & got >$400/night on weekends.
I did my usual snoop on the neighbors pricing & found I can increase my summer 2022 prices substantially for my max. 2 guests and still be among the better priced listings.
Also, I purchased my condos in 2015 & 2016 so I don’t need the prices my neighbors who purchased in the past few months at much higher prices need to cover the bills. While I truly enjoy hosting (ok yes, I get a bit grumpy & overwhelmed at times), it is ultimately about the money.
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I raise rates due to increase in demand. I constantly tinker with the limits of what the market is able to pay. I secured bookings during Christmas that are 3x my average rate for 2021 and 1.5x what I charged the previous Christmas.
I think part of it is inflation, part of it is my listings have a lot more reviews, and part of it is increase in demand.
I team up with people in my building and we share what rates we got for the latest bookings, then we raise them a little at a time until we find a point where we sell out.
Well, yes I do increase prices but I’ve been doing this for so long that if I charged my original prices I’d have people queuing outside the door.
When the prices of anything goes up then prices need to increase. This is especially the case if it’s a high price hike.
It’s a good idea to have you accountant check everything at least once a year to make sure that you’re making a good profit.
Inflation in home prices, yes. I don’t feel that general inflation affects my overhead much, but as home prices go up, so does rent and hotel rates. So my rates go up so they’re in line with my area. All of these are up about 15-20% over the last 12-18 months here. Of course that means an increase in property taxes and probably it will impact the HOA soon… But I expected annual increases at the outset. I am charging higher rates for summer now, now that I’ve been doing this a few years and have a handle on demand.