Hosting tips to help you price your space and earn more money on your short-term rental.
Consider your location
The first area to think about when determining your pricing is the location of your property .
Does the area where your property is located have unique offerings, like tourist attractions, theme parks, sports venues, or concert halls that could drive demand throughout year. If this is the case, you'll be able to set your prices at their maximum for a most of the year.
On the other hand, if your city is home to big festivals or events that only happen at certain times during the year, your demand will fluctuate as the seasons change. Therefore, you'll probably need to change your pricing in tune to the time of year.
Property type and amenities
Consider the amenities that you offer. If you're going beyond the basic amenities, raise your prices accordingly. Features such as a swimming pool, hot tub, or amazing views can significantly bump up your nightly rates.
Smaller properties and shared spaces will have to be priced lower in order to compete with similar property types in the area.
Choose your ideal guest
Another major price-influencer is your property type. Larger and more opulent properties will appeal to travellers who are willing to spend more money for the extravagance and, because of this, these properties can attract a higher price point.
Alternatively, if your property is appealing to students or backpackers on a budget, then your nightly rate will need to reflect the "more-affordable" prices they are looking for.
In addition, you will also need to consider the families with kids, couples and honeymooners, or businesspeople. Each will have different expectations.
Creating your Airbnb experience to accommodate these expectations can give you a better idea of how your nightly prices might change, depending on the type of guest you will choose to target.
Estimate your expenses
We must not forget, the goal of any Airbnb business is to generate a profit. Which means that while it's good to be competitive on price, your income needs to be greater than your outgoings.
It's of great importance that before you set your prices you sit down and list all the costs involved in running your business.
Everything needs to be written down, things like service fees, cleaning expenses, repair and maintenance costs, and restocking of supplies. It all adds up.
Research your competitors
Every prospective client that looks at your Airbnb and thinks about making a booking is doing the exact same thing with other properties similar to yours.
In order to win over their bookings, your property will need to offer more value than the competition. But in order to do this, you need to know what they are offering.
Search for similar properties in your area and see how they compare to your offerings.
Be in line with your business goals and objectives
Every successful business has a plan, goals and objectives.
It's important to keep these goals in mind when planning your pricing.
If your goals are either profit or occupancy based, then your prices should reflect this, pricing correctly will depend on whether or not you have done the correct research. Getting your pricing right is probably the most important aspect of you business as it will either mean full occupancy or no occupancy. Know your numbers and you will be rewarded.
