TL;DR: “Yes”. (I’m answering @HostAirbnbVRBO in a format that is too long and convoluted for some, but they and I have had conversations like this before so I’m rolling with it because I think it’ll be okay with them). But I know it’s messy (or stream of consciousness).
Basically, yes. I don’t use a pricing tool and, admittedly, I don’t know much about them.
I’m on my calendar every day and additionally any time someone books. It used to be my routine coffee time in the morning but since I went back to work full-time, I just do it at lunch. It’s gotten simpler over time, quicker (or I’ve gotten lazy) but I check it against my market (airbnbs, vrbos and hotels) every day at least briefly.
Pricing is based on, more or less in this order: 1. local events 2. five specific hotels that are direct competitors 3. other airbnb listings which are further broken down into direct, extended, indirect and merely in the same neighborhood competitors 4. all local hotels overall
For the airbnb listings, it’s not just their pricing, I keep track of (not daily, maybe weekly) the listings, house rules, min and max stays, cancelation policy, ratings and recent reviews (and recent replies to reviews, lol, because we have some characters here) of the airbnbs that are direct or extended competitors and any new or returning (there are 14 in the area that only host in the summer, 1 is a direct and 2 are indirect competitors for us.
I also specifically keep up on the amount that the major hotels downtown charge for parking fees and for pet fees because they often exceed what the airbnb service fee which is something I always take into account, the service fee. We are in a residential area walking distance to downtown and are a hint of hotel style so that’s why I pay attention to some of the downtown hotels. But people don’t book hotels as much as airbnbs for Thanksgiving, 4th of July or Christmas so hotels are disregarded for those times.
Ultimately, I think the hotels are generally better at pricing than our airbnb competitors. They spend a lot of money and manpower on figuring out prices and have more at stake so when in doubt, I go with the pros/hotels. Ideally, my price is the same or better including the service fee and cleaning fee as our highest-priced hotel competitors (that are also pet friendly) with parking and pet fees added to their price.
I aim to be in the top quarter of pricing but not the highest. And things have been nutty for the last couple of years, prices have been out of control here. I have taken advantage and charged way too much in a generally not premium time because the pickings were slim and demand was high but I often don’t feel good about that in the end and it’s not because I’m not providing, because I am.
So that’s just something to consider too. I think there’s something, I don’t know the word or don’t like the word I’m coming up with (sacred?), but there’s some responsibility or something about taking in travelers, people who are away from home, something there that has to go into the mix with everything else, you can’t leave it out. So you also have to feel good and just about your pricing (though university graduations or the like are fair game, wheeee, lol).
I keep track of local events, but more than local too. There are a couple of places close enough that when there are events in those places we either get the direct overflow or what I call ‘related overflow’. So I keep track of local events in 3 places as well as at local universities (there are 7 of them).
We don’t book that far out (3-4 weeks ahead, usually two), never have, so on occasion we have something available at the last minute (and sometimes from a cancelation which is moderate for us so less than 5 days) and that’s when I start raising prices. Those last minute bookings are bonus money. People (me definitely) will pay a premium to find a decent place 2 days or 1 day before their stay. Raise those prices at the end.
If this sounds nerdy, it’s just how think and approach things but it’s not complicated. There was a learning curve at first and taking in the information but at this point it’s mostly scanning for changes, new listings, etc and quarterly updates for events and such.