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New to this forum. I have a beach house in a prime location, but Airbnb keeps giving me a price tip of $38/night. The hotels down the street charge $500/night for the peak June/July months for the same size room. It seems Airbnb’s algorithm might only be “location-aware” down to the city-level granularity because there are parts of this city that truly are in the $50-$99/night range but not the beachfront and oceanfront properties. Every time I try to raise the price, it seems I’m getting fewer views (and consequently fewer bookings).
I had one pending request at $112/night when I tripled my price for June but I immediately switched the pricing back when it “felt” like activity was dropping, and I didn’t want to be penalized by the Airbnb ranking algorithm before I really got started. Should I just swallow the pill and keep the price low until I get more 5-star ratings?
Have you priced the nightly rate from your competition? I would use their rates as a quick guide. To move up to the first or second page, accept one of Airbnb’s special offers to discount weekly stays. You can just do 10%.
Search for similar listings in your area (similar number of bedrooms/bathrooms, max guest count, beachfront, etc.) and see what rates they have. Make sure to search Airbnb as well as competing platforms such as VRBO and Booking Dot Com, and any popular local-only platforms, too.
Generally speaking, you should ignore Airbnb’s price tips as they they are typically way off on the low side.
That said, it’s not a bad idea to use a low price a little to gain more interest until you’ve got several reviews. This is actually something Airbnb offers to new listings.
@roger1 Pay no attention whatsover to Airbnb price tips, they are absurd. The only thing they are based on is Airbnb wanting hosts to price so low that they will always be fully booked so Airbnb can collect their service fees. They couldn’t care less if you make zero profit or it attracts the worst guests you can imagine.
So true, don’t use the tips as any sort of guide. I’ve gradually raised my price and find I’m still 95% booked. Maybe sometimes I get booked later as folk book the cheaper places first - but I still get booked
You are correct. Airbnb cannot give “bonus points” price-wise for oceanfront, 1st row, walking distance, etc. or other desirable differentiator like golf course proximity, view, ease of access to shopping & dining, recent refurbishment—you get the idea.
As others on this thread have suggested, check out your competition.
Your comment of “hotels…same size …$500” makes me think you are in a condo. Some of your neighbors in the same building may be on VRbO & Airbnb too. Use the map function for an easy Comparable search.
Good luck with getting started.
Btw is ok if you make some mistakes along the way. We all have (and will). Read through some threads to learn from this group’s experiences.
Thanks all for the replies. Does raising the price penalize the long-term rankings or potential for the listing? Ideally, I want the house to be within the top 5 results in this city, so I’ve been aiming for “super host” status. The house and location pretty much sell itself from there, but I’d like to get more traffic/views. I’ve been reserved about raising the price because I had a long-term perspective, but I have to admit I’m not thrilled having a whole family booked for Memorial Day weekend at the price they managed to get it at. Great for the family, but not great for me, because I’ve been operating at a loss for every guest so far.
As far as comparables, I’ve seen at least one super host charging $150-$160/night, but the location is slightly less desirable, and her home is a private room in a shared home. I’m not a super host though, but I do have two 5-star reviews as a start.
You want to be in the top 5 results? Don’t you think everyone does?
Superhost status is not really a factor in high ranking. There are plenty of areas where you can find non-Superhost listings with less than 4* ratings on the first page, with 5* Superhost listings taking a back seat.
Their search rank algorithms are non-transparent, but the main ones are using Instant Book, and high booking to views ratio, as far as I’m aware.
There’s your answer. Charge at least $20 a night over that and make money. If your break even is over that amount, charge that. BE PATIENT. The superhost top 5 status will come soon enough. And stop losing money because you’re anxious. Do the math and the comparisons.
Super host helps, but @muddy is correct. It’s views and conversions and Instant Book. Raise your prices and turn on IB and “if guest meets your criteria buttons.”
You will find differing opinions on using instant book as a new host.
I use it now but for me using it as a new host or on a new rental was not the right choice. I needed to get more familiar with guest needs, set up the pre-written messages, and learn to read between the lines of guest communication first.
