Value vs. Pricing & Competition

Chloe, you need to raise your price. Your place looks like a fine B@B compared to others listed and I would make two night minimum stay.
You have cats as I do. I have found that people with pets in particular those with cats, will have to deal from time to time with guest who claim that they are fine around cats, but are really not. It will influence their perception about your place no matter what. I would just keep kitties not around and away from guest, and let guest that love cats ask for them.

Couple of comments; Based on the posted Reviews you are getting; you are doing a great job and several of the reviews are LONG meaning the guest REALLY liked your place so that means you are on the right track. I do have a comment on the pictures ā€¦in a couple of pictures the wall above the headboard is bare and in one there is a large picture so at first glance you wonder if it is the same room or not. I like the fact that you highlight the Nest bed and pillows for value but it might be worth it to reshoot pictures so guests are not wondering what has changed since the pictures were taken. Also, Airbnb stats show that beds with a red pillow get more bookingsā€¦I have not tested that yet but am going to.
Next, pricingā€¦since you are getting great long reviews and it seems more advance bookings then the other listings, I would think about bumping the rate for Friday and Saturday up a little. Why charge the same for Tuesday as Saturday? I use BeyondPricing.com and have seen more income and more bookings since they change my rates every day based on the base price I set.
Also I think you should get Super Host on the next review and that might help some for value and bookings.

The thing is that with Airbnb is very hard to do, i mean price raising. Chloe can raise her price of course butā€¦ will she ever get any guests. If she is just offers a room in her house with private bath, what is she offering so unique that will differ her from other listings?
@J_Wang once mentioned what Airbnb private rooms dont offer is privacy, and in m y books privacy is huge. If we only rent out our rooms in our house where we live we must be cheaper than hotels, otherwise what is the whole point of Air. Air started as a more economic alternative to hotels, and it supposed to cost less, because there is limited privacy for a guest, lack of hotels amenities and other issues like check ins. I am now only talking about private rooms not separate units, its a totally different story.

I just checked hotels.com in Chloeā€™s town, and you can easily find a very decent hotel there for 70$.For 80$ its a very nice hotel with excellent reviews. Chloe list her room for 60$. It is cheaper than hotel but not that much. If she raises her price to 70$, do you think she will have much luck renting it? I dont thinks so.
Unless someone desperately needs kitchen, and i am not sure if Chloe lets her guests cook in a house, then who would rent private room in someones house with very little privacy, not knowing what to expect, and not knowing what kind of a person your host is, vs hotel with excellent reviews for the same exact price?

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There is only one way to find out and I am currently on Round#3; leave price at a certain level for one month and review bookings versus income. Round#2, raise/lower price for a month and review. Add Cleaning Fee to see IF lower room rate with cleaning fee will result in more or less bookings and revenue.
Yes, Airbnb rates MIGHT need to be less than a hotel BUT we SHOULD be offering a different and BETTER experience from a standard hotel room. The VALUE we add is the common area of the house to include the kitchen AND the hospitality of the host. The trick is for EACH Host to determine what their value add is based on how they have the room equipped and the location.
In my city of Las Vegas, you can stay in hotel rooms from $29 a night to thousands. I am avg. around $65 for a Friday or Saturday night because I have keyless entry 24/7 with camera, 750 thread count sheets, 4 pillows per bed, $40 towels, 6 channel high speed wifi, mini-frig per room, and more. I have spent over $2500 per room to make the guest feel BETTER than a standard strip hotel room.
All Hosts NEED to change their rates over time to find the sweet spot they are looking for. Lower rates WILL generate more bookings, Higher rates, less bookings so our job is to find what works best for US based on how much work we are willing to put in to our business.
From looking at Chloeā€™s listing; I think she COULD raise prices on Friday and Saturday and NOT lose bookings but there is only one way to find out. If it does not work for her than she can lower back to current rate and know that she is getting the best return on her investment.

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Another thing that is constantly happening is that more airbnbs are being added to the market daily. When I started in May 2014 I was getting regular bookings for a room in my home, bathroom across the hall and not shared with anyone for $39-49 one person. Iā€™ve had to lower my average price because there are 4 times as many comparable listings as when I started. And the real kicker is that I added on to my house and my rental now has a private ensuite and private entrance. So they have all the privacy they would have in a hotel. The room is a little smaller that a typical hotel room but the bathroom is nicer than any similar hotel. I am able to keep my calendar open more due to the private entrance but Iā€™m not getting more per night. Thank goodness I didnā€™t do the remodel just for airbnb. To each their own but I wouldnā€™t pay one dime more for a 750 count sheet or a $40 towel. What I want is my own bathroom that isnā€™t shared with anyone, preferably ensuite

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Do you describe all of the improvements you made in your listings? For me Airbnb is the last choice vs hotel. The only reason why i would ever go to Airbnb is the cheaper price.Orā€¦ i would imagine for someone who absolutely needs kitchen.
WHy would anyone want to roam someoneā€™s house? I would feel very uncomfortable to impose knowing my hosts live in the house. Most guests just stay in their rooms, most too tired to ingage in conversation with a host , does not matter how cordial a host is. I love standard hotel rooms, how is the room in someoneā€™s house can be better than hotelā€™s room?
The there is review. Guests really need to behave because they are in someoneā€™s house. There are so many situations when the fact that Airbnb private room is restricitng a certain behavoir that standard hotel room does not. For example, bringing someone with you. Though supposedly in hotels you can not bring another person in a room, people do it all the time. Then in hotel you dont have to clean after yourself, make as much mess as you want , you have room service. I love when i get away not to do my own bed, and not to cook my own breakfast. Most Airbnb dont offer that.
What you offer is no different than a nice enough hotel. Then again if your place was 2,3 times cheaper thats a totally diffrent story, but if you equal to any hotel in the area, sorry but i cant see how it is possible to rent it at all. Even with 750 count sheets.
My house is an obvious example. I have 85 very good reviews. Almost everyone mentions how beautiful and clean my house is. I offer many things for free:wifi, TV in each room, cable, movie channels, Netflix, laundry, light use of kitchen, parking, its all free. Well, i dont have 750 count sheets, but mine are not bad also at all. Actually i just bought few sets of 500 count sheets but only because they were on huge sale. But it all does not matter, at all!
All my guests only want is safe, clean, not expensive place to stay, and be able to do their laundry and warm up their food. If i raise my prices, forget it, no one will even look at my listing. These are prices in my location, and there is nothing can be done about it.
I experimented for a long time, raising, reducing prices, and every time i raised my price i went empty.

@Yana I was surprised to learn how many people, especially those traveling alone, really do want to interact with the host. I thought once I put the separate entrance Iā€™d hardly see my guests. That has not been the case. Couples are more likely to keep to themselves. I offer the guests the chance to use the kitchen or sit on the back patio or pet the dogs. Iā€™d say half of my 170 guests have come out of the guest room and joined me or me and my friends. And though the ā€œlive like a localā€ seems to be a much disdained slogan on this forum, there are people, including me, who prefer that to a cookie cutter- sterile- no one talks to you- hotel experience.

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I agree. The private bathroom, regardless of where it is, is a huge draw for sure; especially for women I would think.

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Iā€™m the oddball who loves hiding out in a motel room, curtains drawn, AC on :slight_smile: --crocheting and watching trash TV.

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@Yana, you do have a good point. So yes, if it is a room just to spend a night or two and no privacy or amenities, prices have to be lower than the hotelā€™s. If you are in a place where young people come for spring brake, yes prices have to be lower.

However there is a segment of travelers that is looking for a personal touch, B@B experience, social contact on a one to one basis rather ā€œwho is nextā€ and guest from room number 1111. Her home, her decor with special touches and attention to detail is unique.
That is at least what I will be looking for as a traveler.

I have been in Travel Industry for over forty years, and I have stayed in 5* hotels and Cruise ships, but the ones that I remember even today, are those smaller, unique, personal type of accommodations with peoples faces on it.

It is not for everyone I agree, but there is a good segment of travelers that are precisely looking for that experience, the kind of place that she offers.

Airbnb should not be just about being cheaper than the hotel.

When you open that door to your home, one enters even do for a brief moment, in to ones life. Yours and theirs. When I used to travel, I always went to meat the local people. I never judged anyone if they had a fridge or no fridge, but those encounters were priceless for me that I remember even today.
I agree it is not for everyone but there are plenty like me out there.:slight_smile:

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I dont know may be because you have dogs. I stopped during my walk in a park and talk to dog owners, telling them stories about my puppy. I think i know all of them now. I like to talk, believe me, i am one of those who takes only a little bit to get into conversation. But there is a limit. Once i got a chatter box to the point that I did not want to pass this person, otherwise my day was ruined:)

I like to engage in conversation with an interesting local host, or a guest, but i would not look for that experience in my accomodation. I can as well get engaged in a conversation with locals somewhere in a bar, or hotel lobby, at least there i have a choice to just get up and leave.
Lately my guests are working people. They have no interest of spending their limited time of rest on me. I dont see them, they dont see me. If i need something i text them, and they do the same.

I travel alone too, more than i travel with someone. I can say, i did not see too many willing to have long conversation hosts. May be 10% asked me questions, most couldnā€™t care less who i am and how many kids i have.
Once i had dinner with a host, once we went together to a pub for a drink.But thats out of many many stays.

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Ok, but how do you advertise your personal touch? DO you say things like, I will show you around, or you will feel like you are visiting a family memberā€¦ orā€¦ i dont know, do you say something indicating all of this? How would a person find all these qualities when he/she looks for a room? And why would someone pay more for this? We are talking about pricing our rooms. Unless you offer extra something concrete,that people are wiling to pay for, again i dont see how its possible to be at the same level as any nice hotel.
I dont like cruises for this one reason, that i cant meet any locals and experience the culture.

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Reviews are a good way to find out if the host is going to be available and what kind of experience they provide.

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Thats fine, but who will pay more for it? That is the question
In my reviews i am an agel according to my guests. One italian couple said, the the most joy of their stay was my persona:). I did not let them leave for 2 hours, we just talked and talked. That did not help to sell my room for more in a future

Are most of your guests New Englanders?

I grew up in New England, so I feel like I can say this. New Englanders can be a little tight with money and praise.

I canā€™t ever imagine my father giving 5 stars for anything.

Because to do that might make the recipient get ā€œa little too big for his britches.ā€ Lol

If you set a 2 or 3 night minimum you might avoid the ā€œjust passing throughā€ types who donā€™t even spend enough time in your place to see the value in it.

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The OP isnā€™t just about pricing itā€™s also about value and competition. Weā€™ve seen on this forum, some will pay more for a private bathroom, some wonā€™t stay in an Airbnb at all if itā€™s not private or ensuite. Some will pay more for historic or stylish. I will pay more for a place with dogs. Chloe was bothered by losing a star for value but next to location that is the most subjective rating. She is trying to find the sweet spot and there are so many variables that no one can have a definitive answer.

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@Yana, It is your home, personal style. Not all guest want to have conversations, not all guest care about personal touches, to many variables.

Airbnb is not all about being cheaper than Hotels. When you open door to your home to perfect strangers, you are inviting them in to your life. For some price is important, for some the experience with the host, for some uniqueness of the place. I think that you have to decide what is the price that you are comfortable with.

There is a certain segment of the guests that want cheapest price and a more ā€œhostelā€ amenities but for my BUSINESS; I choose to focus on guests that want a more upscale feel to their room and are willing to pay slightly more for the stay. I have 3 bedrooms that all share a full hallway bath so I need to have something that offsets the desire for a private bath. And in the Las Vegas market there is enough guests that I can afford to not chase 100% of the guest market.
Will this work in ALL markets? No. But again this is a business and hosts need to decide what level of stay is in demand for their market and what price works for them. ALL markets can and should charge more for high demand dates and I think Friday and Saturday should be hgiher than the rest of the week but it is up to the business owner to decide what works for them.

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@Yana, You can not change location, neighborhood or type of a home you owe.
I myself did spent last weeks reevaluating my place, the market, my competition and so many other factors. I should have done this a bit sooner, but without experience it was trial and error, frustration, happiness and now reality.

I donā€™t think I am understood.
Letā€™s forget unique properties, letā€™s forget niceness of a host ( we all are nice enough, and most reviews say how nice we all are). Letā€™s take regular private rooms where guests want to stay couple nights.
I have another house where at one point I wanted to rent out rooms. I thought I could put higher price because there is a pool. And here in tropics in my opinion it was a big attraction. I put 69$ for a room. I even forgot about that listing. Within a year noone even inquired. Rooms in my house where i live at 52$ are being rented.
Private pool did not matter at all, grill, use of kitchen, laundry, nothing mattered because there are hundreds of rooms in my area for 40-50$.
If you have something unique to offer like an island in Belize then yes, itā€™s not only price, but if all you offer is just another private room, no one will pay you more because your towel cost 40$.