Consider your area and circumstances when pricing
As a Host, you’re always in charge of your pricing strategy. You choose the price you set, how you set it and how you adjust it over time.
A top consideration is local demand. If your place is priced higher than similar listings nearby, there’s a chance you’ll miss out on bookings. If your place is priced competitively, you’re more likely to attract guests, which could lead to a boost in your earnings on Airbnb.
Keep tabs on local demand
Knowing what similar listings in your area are being booked for can help guide your pricing strategy.
To compare prices, select any open date on your calendar, or you can choose a date range of up to six nights. Tap or click on your nightly price and then tap or click the button below it showing a map icon and the words “Compare your price”.
You’ll get a map of average prices for similar listings that guests have booked nearby. You can also check the prices of similar listings that are still available.
The prices shown on the map reflect each listing’s average booked or unbooked price for the dates selected. The factors that determine which listings are similar include location, size, features, amenities, ratings, reviews and the other listings guests browse while considering yours.
“Knowing what’s happening in my area is going to give me so much more confidence in my price,” says Felicity, a Host Advisory Board member and Superhost in New South Wales, Australia. “I’ll know if I have the best price, so I should hold my ground, or if I’m being a bit greedy and need to drop my price.”
You can also respond to local demand by tracking:
- Special events. Conferences, festivals and other big events can create major demand. Join social media groups, follow your local tourist information centre or register with event ticketing sites to help you plan ahead.
- Seasonal shifts. In places that draw crowds at certain times of the year, hosting during your area’s peak season can help you earn more, while lowering your price during low season can attract more guests.
Pricing your place competitively may also help your listing rank higher in Airbnb search. The results take into account the value and quality of a listing compared to similar ones nearby.
Consider your costs
Your hosting costs can help you think about your price as well. Daniel, an Airbnb Superhost and Host Advisory Board member in Tenerife in the Canary Islands, says he tracks what he calls the “internal” factor of his hosting expenses along with the “external” factor of demand.
Daniel says he balances his expenses with what guests are willing to pay to help him set a reasonable expectation for what he can charge and earn.
Examples of hosting expenses can include mortgage or rent, maintenance, taxes and cleaning fees. Some costs may not be obvious to guests and can help explain your price. You can highlight any added value you offer in your listing description, such as luxury bath products or streaming services.
When Pamellah, an entrepreneur and former Host Advisory Board member in Malindi, Kenya, first started hosting, she says she focused too much on her own costs. She set her price “so high, based on how much I’d put into it” and didn’t get any bookings.
“Two hours after reducing my price, I never stopped hosting,” Pamellah says. Though her experience may not be typical, she was able to increase her price quickly. Thanks to steady bookings and positive guest reviews, she became a Superhost less than three months later.
Make sense of the numbers
Track your expenses and earnings throughout your hosting journey. “I set up a separate bank account to track my expenses, so when it’s tax time, I’m not in bad shape,” says Reed, a teacher, entrepreneur and former Host Advisory Board member in Philadelphia.
Local lawyers or tax professionals can provide advice about taxes and laws that apply to Hosts in your area. Please note that Airbnb does not give professional guidance. “If you need to get a tax adviser or you need to do a little research on how to make sense of the numbers, do that,” Reed says.
If you’re a new Host searching for one-to-one support with pricing, we’ll match you with a Superhost Ambassador who can help.
Information contained in this article may have changed since publication.
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