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    How to set a pricing strategy

    The right price can help you attract guests and boost your earnings.
    By Airbnb on Dec 1, 2020
    3 min read
    Updated Nov 21, 2022

    Highlights

    • Entice your first guests with a starting price that’s slightly below your target price

    • Our tools can help you set and adjust your pricing, including discounts

    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.

    Try these tips to figure out a pricing strategy that works for you.

    Know your area

    Start by checking the going rates. Search Airbnb for similar listings in your area, taking into consideration:

    • Property type: house, apartment, 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
    • 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.

    Searching different times of the year can help you learn how Hosts near you adjust pricing seasonally, on weekends, and for special events or holidays.

    Offer the best value

    It’s important to keep in mind that 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 now choose to display total prices upfront 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 prioritize total price and the quality of a listing compared to similar listings in the area. Learn more about how search results work.

    Guests may be hesitant to book listings with no reviews, so consider setting your price a little lower than your target number. Once you have a few positive reviews under your belt, you can decide whether to raise your price to match the demand in your area.

    Some costs you’re including in your price may not be obvious to guests. Do you offer luxury extras, like a full breakfast, artisanal bath products, or select streaming services? Make that clear in your listing description to help guests find value in your price.

    Try these pricing tools

    Smart Pricing

    Do you want your price to change automatically based on demand? Turn on Smart Pricing. This pricing tool takes into account over 70 different factors to determine the best price for each available night on your calendar.

    Your pricing automatically updates, depending on things like:

    • Lead time: As a check-in date approaches
    • Local popularity: The number of people searching for places to stay in your area
    • Seasonality: Predictable seasonal changes in demand for places to stay in your area
    • Listing popularity: The number of times guests visit and book your listing
    • Review history: The number of positive guest reviews you receive

    To help ensure your pricing meets your needs, set a minimum and a maximum nightly price in the Smart Pricing tool. Your rate won’t fall below that threshold unless you’re offering a discount that also applies. If you’re ever unhappy with the price set by Smart Pricing, you can simply type a new one for that date into your calendar.

    Price preview

    The price preview tool allows you to view the final price guests will pay—including fees, discounts, promotions, and taxes.

    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 you’ll be shown a breakdown of the guest’s total price and your payout.

    Discounts

    Consider offering discounts on longer stays to entice guests to book. Weekly and monthly discounts can lead to higher occupancy, lower turnover, and less work for you.

    It may take some time to get your pricing strategy just right. Meanwhile, be flexible and stay focused on guest satisfaction. More positive reviews can help grow your hosting business.

    Information contained in this article may have changed since publication.

    Highlights

    • Entice your first guests with a starting price that’s slightly below your target price

    • Our tools can help you set and adjust your pricing, including discounts

    Airbnb
    Dec 1, 2020
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