My house is very nice in comparison to other AirBnBs in my area. It tends to attract families and an older crowd. I’ve noticed that these types of guests are very prepared and often book 1-2 months in advance, and also have the money to spend on a listing that is nicely furnished and in a good area, with great photos.
I just switched to BeyondPricing, and one of their interesting metrics is a health score, which uses your occupancy percentage 30 and 90 days out to determine if you’re under or overpriced. Mine came in as well underpriced - I’m averaging 85% occupancy this year.
This got me thinking: perhaps I should jack my price up by quite a bit, hoping to get a smaller amount of advance bookings, but at higher dollar values, from the prepared advance bookers, then start exponentially lowering my prices, from a 2% discount 14 days out, to a 50% discount 2 days out.
The advantages I can see:
- Could raise my overall RevPAR
- Dual pricing strategy caters to both advance and last-minute bookers
- My house sleeps 7 in a 2-bedroom format, average guest size is around 4, so it may not be ideal for last-minute bookings as larger groups don’t tend to book last-minute
I’d be interested to hear experiences of anyone else that has tried the same.