Airbnb Price Tips, Are They Too Low?
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A lot of new hosts will price their listings according to Airbnb price tips. Superhosts and professional Airbnb hosts know better than to fall for it though. Critics of Airbnb’s smart pricing like to accuse it of pricing too low. The thought process behind this is that if a listing doesn’t book for a night, Airbnb doesn’t make any money on it. Airbnb would rather have the host book the listing for a low price than not at all.
What’s Wrong With Airbnb Price Tips?
A common mistake that most new hosts make is turning on smart pricing, going with Airbnb’s recommended minimum, and then booking up their calendar very quickly at an absurdly low rate. After realizing what they’ve done, they start cancelling the reservations, which will cause them to incur penalties and have their dates permanently blocked. These initial penalties will destroy their search rankings, their dreams of Superhost status, and a full calendar will vanish quicker than their listing booked up.
How Do I Know What to Price My Listing At?
Nothing can answer this question for you except trial and error. A favorite pricing strategy involves using an app such as Wheelhouse to set prices using their advanced algorithm and market data. Using an algorithmic pricing tool is essential to beat the competition. You should never use flat pricing. Not even if you have flat pricing that varies by season. You are leaving a ton of money on the table if you do!
What Are Airbnb Price Tips Good For?
Airbnb price tips are good for one thing. They give you a reasonable indication of what pricing Airbnb would expect to put you near the top of their search rankings. You can monitor your search rankings daily using Hospitable’s (formerly smartbnb) market report feature. It’s been an invaluable tool for many hosts to reach 100% occupancy most months of the year.
What are your Airbnb pricing tips? Share in the comments below!
About the Author Kevin Kelsey
Originally from Connecticut, Kevin moved to Los Angeles in 2013 and worked his way up to becoming an editor on award-winning reality TV shows. Kevin owns 4 short term rentals in Southern California and founded AirHost Academy to help other hosts improve their business.