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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 Oct 4, 2022

    Highlights

    • Entice your first guests with a starting price that’s lower than your ideal number

    • Improve your earnings over time by adjusting your pricing seasonally, on weekends, and for special events or holidays

    • Update your pricing

    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.

    To figure out a nightly price that works for you—and determine when to make adjustments—try these tips.

    Do a little market research

    Start by searching Airbnb for similar spaces in your area, taking into consideration:

    • Your property type (house, apartment, etc.)
    • The amount of space guests will have to themselves (entire place, private room, etc.)
    • The number of guests you can accommodate and beds/bedrooms you provide
    • Your top amenities (wifi, kitchen, pets allowed, etc.)

    Make sure to check multiple dates in the future. Listings with competitive pricing tend to be reserved first, so choose dates a few months from now when doing comparisons.

    Properties still available in just a week or two may be priced too high. Thinking ahead will also help you learn how Hosts near you adjust pricing seasonally, on weekends, and for special events or holidays.

    Consider your location and hospitality

    Some things you’re including in your price may not be obvious to guests. For instance, people unfamiliar with your area may not appreciate the beauty, tranquility, or convenience of your location unless you spell it out.

    The same is true for aspects of your hospitality, like providing a full breakfast or a welcome basket full of treats. Make whatever you offer super clear in your listing description and photos to help guests find value in your price.

    Stand out with great pricing

    Keep in mind that the nightly price you set isn’t the final price guests will pay. For that, you’ll need to add in the guest service fee, any optional fees you plan to charge (like cleaning or extra guest fees), and taxes in your area.

    “When you’re just starting out, it’s a good idea to have a competitive price,” says Ros, a Host in Durban, South Africa. Guests may be hesitant to book listings with no reviews, so setting your price a little lower than your ideal number is a great way to attract guests.

    Once you have a few positive reviews under your belt, you can raise your price to match the demand in your area. Competitive pricing can also help your listing rank higher in guests’ search results.

    Use the Smart Pricing tool

    Want to take away some of the guesswork? Turn on Smart Pricing. Airbnb’s pricing tool takes into account over 70 different factors—plus controls you set—to determine the best price for each available night on your calendar.

    Your pricing will automatically update 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 make sure your pricing always meets your needs, set a minimum nightly price in the Smart Pricing tool. Your rate won’t fall below that threshold unless you’re offering a discount that also applies. And if you’re ever unhappy with the price set by Smart Pricing, you can simply type a new one into your calendar.

    Find what works for you

    It may take some time and a bit of trial and error to get your pricing strategy just right. As you gain knowledge and experience, try adjusting your price for special events, holidays, and other times when guest demand is high.

    Meanwhile, be flexible—and stay focused on guest satisfaction. After all, more positive reviews can help improve your hosting business.

    Discover more in our guide to setting up a successful listing

    Information contained in this article may have changed since publication.

    Highlights

    • Entice your first guests with a starting price that’s lower than your ideal number

    • Improve your earnings over time by adjusting your pricing seasonally, on weekends, and for special events or holidays

    • Update your pricing
    Airbnb
    Dec 1, 2020
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