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    Setting a pricing strategy for your Experience

    Try these Host tips for adding discounts, managing costs, and attracting guests.
    By Airbnb on Mar 28, 2018
    5 min read
    Updated Jul 27, 2022

    Highlights

    • Consider enticing your first guests with an introductory price

      • You can offer different prices for your Experience on different dates

      • The price of your Experience is entirely up to you

      Whatever your hosting goals, a savvy pricing strategy is one of the keys to success. Your price is always up to you, and you can adjust it to account for seasonality, holidays, and other circumstances—what’s included below are simply suggestions to help you craft a pricing plan that sets you up for success.

      To figure out what works best for you and your Experience, try thinking about your target audience, setting an introductory price, offering different discounts, and learning from other Hosts.

      Identify your target audience

      When setting a price, it can be helpful to think about your target audience. What are their key attributes and preferences? What might they spend on an afternoon or a night out? How might your Experience fit into their overall trip?

      You could also research the average cost of a meal or an activity that’s similar to yours, if there’s anything comparable in your area, and perhaps use it as a guide. You want guests to find value in your Experience, and you don’t want to price it too high.

      Understand your costs

      Creating a detailed list of all expenses required to run your Experience can help you set a successful pricing strategy. Things to consider could include transportation or venue costs, license or permit fees, and the price of materials, supplies, or tools. 

      You may want to group your expenses into essentials and extras and try to lower your costs. For example:

      • Could you purchase materials in bulk to save money?
      • Could you cut back on any expenses and still host an unforgettable Experience? 
      • Could you add anything to your Experience at little or no cost?

      Since all Experiences have a one-guest minimum, try to avoid fixed costs that can’t be adjusted based on the size of your group.

      Gabriela, a Host in Rio de Janeiro, initially offered a traditional cocktail at the end of her Experience. When she realized this was adding to her hosting costs, she removed it. Doing so allowed her to lower the price of her Experience, which increased bookings, particularly among families.
      I reworked what I offered, allowing me to reduce the fee, and this really helped!
      Host Gabriela,
      Rio, Brazil

      Offer an introductory price

      If you’re a new Host or are starting a new Experience, setting a lower introductory price can help you attract your first few guests, get reviews, and build word-of-mouth business. You can also offer early-bird promotions and group discounts to attract bookings.

      Enticing guests with an introductory price can create opportunities to collect feedback from guests. You might want to consider hosting an invite-only test-run of your Experience for friends and family.

      Remind all guests to leave a review. On average, Experiences with five or more reviews tend to get nearly 10 times more bookings within the first six months of launch than those with fewer reviews.*

      Once you’ve received a few reviews, you could consider rethinking your price or trying promotions and discounts. According to internal Airbnb data, Hosts who offer their Experience at different price points are more likely to get bookings than those who don’t.**

      Consider other discounts

      You can set discounts by editing your Experience and selecting Price settings.

      • New Experience promotion: Hosts with new Experiences can offer a discount of 5% to 50% per booking in the first 30 days after the listing is published. If the discount is 20% or more, the original price of your listing will appear with a strikethrough, which can help attract guests. Note that you can’t adjust your base price while this promotion is active.
      • Early-bird discount: Guests who book two weeks or more in advance get a 20% discount.
      • Group discount: You can choose both the size of the group (such as three or more guests) and the size of the discount (from 1% to 99%). To receive this discount, there must be a sufficient number of paying guests in the group.

      Only one discount can apply to each booking. If you have multiple discounts enabled, the largest eligible discount will be applied.

      Test your prices

      You may want to also think about times when demand for your Experience may increase or decrease, as these periods can provide opportunities to test your prices.

      Consider peak travel periods tied to local events, holidays, or festivals as well as popular times of the day or week for certain activities. For instance, during Carnival there may be an increase in travelers coming to Rio de Janeiro, just as there may be fewer people visiting New York City during the typically cold, dreary months of January and February.

      Try picking one or two dates on your calendar to test a lower or higher price. If you find more guests are signing up for those dates, it may be time to adjust your price to ensure you’re meeting demand.

      Learn from other Hosts

      Keshav, a Host in New Delhi, says setting the right price is an important part of launching an Experience. When he started his Experience, he wasn’t sure how much guests would be willing to pay. So he set an introductory price that was 80% lower than it is now.

      His strategy worked. His first booking was a corporate team of 10 who wanted to try something fun in the neighborhood.

      “The booker told me that he didn’t have to think twice before booking my Experience because the price wasn’t too risky, and the Experience photos and description looked promising,” Keshav says. “That gave me confidence to make necessary adjustments,” like raising the price.

      Keshav advises not to settle on the same price for a long period of time, especially when your Experience is still new. “Experiment and change the pricing based on factors like tourist season, global festivals, and relevance of the Experience you offer in the area.”

      Ultimately, the price of your Experience is up to you. We hope these tips offer you a few things to think about as you adjust your pricing to help you find the right fit—both for your guests and for the ongoing growth and success of your listing.

      *Based on internal Airbnb global data measuring the average number of bookings and guest reviews between November 2020 and November 2021.

      **Based on internal Airbnb global data measuring changes in price and number of days without bookings for Experiences listed between January 1, 2021, and June 30, 2022.

      Information contained in this article may have changed since publication.

      Highlights

      • Consider enticing your first guests with an introductory price

        • You can offer different prices for your Experience on different dates

        • The price of your Experience is entirely up to you

        Airbnb
        Mar 28, 2018
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