The worst mistake anyone can ever commit when running their business is messing up their finances. Your revenue and income is the focal point of your whole business. However, everyone makes mistakes and that can be avoided once you are briefed properly. Airbnb pricing strategies can be kind of tricky to get a hang of in the beginning, but once you identify some of the mistakes you might be making, it is easy to avoid them in the future. Here are some mistakes Airbnb hosts are making regarding their Airbnb price optimization:
Not Utilizing Automated Airbnb Pricing Strategies
With the help of advanced technology, Airbnb hosts can now make the best of automatic rate optimization for vacation rentals. This usually helps increase a host’s general income by up to 40%. The automated algorithm is designed to price your property at a maximum price, whilst still guaranteeing bookings. The price depends on factors such as seasonality, your competitors’ prices, special events, and whether it is a weekday or weekend.
Ignoring the Hubbub in Your City
Usually, it happens that guests start booking their stays on Airbnb for the sake of attending an event or festival. It is important that you stay up to date with all upcoming important events happening in your city so you can take advantage of them. Adjusting your prices according to what is happening in your city allows you to earn handsome revenue. Football games, festivals, concerts and carnivals are great times to flex up your pricing.
Keeping a Static Price All the Time
The importance of changing price on Airbnb listings is really significant. You can’t possibly keep a static unchanging price on your rentals for the whole year because there are so many times and situations where increase in the price will result in more profit. Holidays such as Christmas, spring break, summer break, Easter, Thanksgiving…etc will all play in your favor and it is perfectly sensible to change price on Airbnb rentals then.
Same Pricing All Week Round
Everyone knows that Airbnb prices fluctuate and change over the course of a week. During the weekdays prices are usually lower and even more so during certain times of the day like at midnight. On the other hand, during weekends and Friday evenings, prices go higher. The best thing about this is that you do not have to manually input and change the prices. Go for an automatic pricing tool that will handle all the Airbnb pricing strategies you need.
Starting at A High Price
Airbnb listings garner their reputation and earn a high enough rental price according to the reviews they receive overtime. If you are a new host who recently purchased your vacation rental, do not go off placing a price as high as those other hosts that have over 500 reviews. New accommodations come at a nominal price and once you have gotten the best reputation you can muster and maintain, then you charge higher. The extra charge depends entirely on the services and complementary features you add to your business. Make sure to test a high price on your Airbnb occasionally as you’ll never want to undervalue your property, if people are happy to pay a premium for it.