In today’s blog post we will discuss the topic of pricing of your Airbnb or price optimisation as we call it. This process factors in a lot of critical pieces of which we will elaborate below. Remember if you are pricing up for the months ahead in advance you need to be aware of upcoming events which might affect the price of the market at this time.
Maybe it is a concert, football game, festival or conference which drives huge demand in the city. During 2022 there was 4 concerts put on by Garth Brooks in Dublin which where announced a few months in advanced. If you where not aware of this you could be leaving a lot of revenue on the table.
1. Research competitors’ rates: Analyze other Airbnb or short-term rental properties in your area to determine the average rate. This will give you an idea of what you need to charge to stay competitive. But be mindful that your competitors might not be tuned into upcoming events so all ears to the ground.
2. Consider seasonality: Prices may fluctuate depending on the time of year, so consider adjusting your rates accordingly. For example, you might charge a higher rate during peak season, or during holidays when demand is highest. In Dublin we find that July which is a peak time of year is not as busy as you would think due to many factors.
3. Understand costs: Consider the cost of running the property, such as utilities, portal fees, cleaning, and maintenance. Make sure your prices cover these costs, plus a margin for profit to make it all worth while. Short term letting of properties requires work either physically or mentally as you need to be tuned in at all times.
4. Be flexible: Consider offering discounts or special offers to entice guests. For example, you could offer a discounted rate for longer stays or for last-minute bookings. Longer stays equals less cost of turnarounds as you don’t need to get it cleaned or fresh linen.
5. Test and adjust: Experiment with different rates and see how it affects demand. If you’re not getting enough bookings, consider lowering your rates. Likewise, if you’re getting too many bookings, you may want to increase your rates so you need to be tweaking your pricing to test what works.
6. Leverage reviews: Positive reviews can help attract more bookings, so consider offering discounts or other incentives to encourage guests to leave reviews.
7. Utilize dynamic pricing: Certain technology and software solutions can help you adjust your rates automatically based on demand. This can help ensure you’re staying competitive without having to constantly manually adjust your rates. At Raspberry Key we use cutting edge technology to help manage our pricing and it factors in like for like competition in the area of the property.
8. Optimize for search: Use keywords in your listing that guests are likely to search for. This can help your listing stand out and ensure you’re appearing in the right searches. Remember there are multiple platforms that guests can find your property on with the most popular been airbnb.com, booking.com, expedia.com, hotels.com and our own platform 1roomnow.com
At Raspberry Key we have dedicated account managers who help manage pricing and price optimisation. Get in touch with us now for chat to see how we can help you.
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