How to set a pricing strategy
Price is one of the main things guests consider when choosing where to stay. No matter how wonderful your space is, if it’s priced higher than comparable places nearby, there’s a good chance you’ll miss out on bookings.
In 2022, listings with prices that were updated at least four times had over 30% more nights booked than those that didn’t.* Try these tips to figure out a pricing strategy that works for you.
Know your area
Start by searching Airbnb for the nightly prices of similar listings in your area. Consider what you offer, including:
- Your property type: house, flat, etc.
- How much space guests will have: entire place, private room, etc.
- How many guests your place sleeps comfortably: number of beds and bedrooms you provide
- Your top amenities: wifi, kitchen, pets allowed, etc.
When comparing prices, choose dates a few months in the future to fully understand what’s out there. Properties still available in the next week or two may not be booked because they’re priced too high.
Observing what other Hosts charge at different times of the year can help you adjust prices seasonally, at weekends and for special events or holidays. Guest travel trends in your area are highlighted in your Opportunities hub.
Offer the best value
The nightly price you set isn’t the total price guests will pay. The total price also includes any optional fees (for cleaning, extra guests or pets) you might add, plus Airbnb’s service fee.
Guests can choose to display total prices up front in locations where local rules don’t already require it. Competitive pricing can help your listing stand out and rank higher in search results, which prioritise total price and the quality of a listing compared to similar listings in the area.
Try these pricing tools
Discounts and promotions
Discounts and promotions let you offer lower prices under certain conditions without changing your regular nightly price. These tools support different situations, such as welcoming your first guests or hosting longer stays.
Longer stays: Offering weekly and monthly discounts can lead to higher occupancy, lower turnover and less work for you. Reservations of a week or longer made up 46% of nights booked on Airbnb in 2022.
New listings: Promoting a brand-new listing with a 20% discount off your nightly price can help entice your first three guests to book. Airbnb data shows that Hosts who offer this promotion during the first 30 days a listing is active get their initial booking faster.
The discounts and promotions available for your listing can be set from your hosting calendar.
Preview what guests pay
You can check how any changes you make affect the final price guests pay, including all fees and taxes. This tool is especially useful if you add a discount or promotion.
To use this tool, go to your pricing settings and select “Preview what guests pay”. Enter the details of the stay, such as the number of guests and nights in the reservation, and get a breakdown of the guest’s total price and your payout.
*Based on listings worldwide (except China, Russia and Ukraine) that had one or more nights available from January to September 2022 and did not have Smart Pricing turned on. Additional factors affect nights booked.
Information contained in this article may have changed since publication.
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