Pricing your Airbnb should be done the same way as hotel and airlines do their pricing… hotels call this “revenue management”… … but pricing your Airbnb isn’t a one time deal… That’s one reason why you’ll want to use a tool like AirDNA… This is what optimizing for ADR (average daily rate) VS occupancy looks like… You can make as much with less guests going through your property, which means you can save on turnover expenses (cleaner fees, laundry, etc.), and put less wear and tear on your property…ĪirDNA is a tool you can use to find that sweet spot where you can earn more even if you are not booked 100%… What if you could price at $150 a night and be booked only 2/3 of the month… Let’s say you are booked 100% by pricing your STR at $100 a night just for easy math… Obviously he was being facetious, but the point he was making was that pricing your short term rental low just to get more bookings is not how you increase the profitability of your short term rental… This is what the AirDNA Market Minder dashboard looks like…Īirbnb’s pricing tool is optimized to get you more bookings, but more bookings doesn’t make your short term rental profitable… as one of my mentors said, “if you want to be 100% booked, just price your Airbnb at $1/night”… You’ll want to get data on average daily rate, occupancy rate, revenue, and even market grade if you are looking to launch a new Airbnb in the area.
To run a successful Airbnb you’ll want to know the average daily rate of your competitors and see how your vacation rental stacks up against it.
#1 Optimize your short term rental for higher nightly rate not occupancy If you are looking to start hosting on Airbnb or looking to optimize pricing of your current listing, then you’ll want to use an Airbnb analytics tool like AirDNA to see what your competition is doing.Īirbnb has a pricing tool built into their system… so why should you spend money on a pricing tool if Airbnb has one already?Īirbnb optimizes for higher occupancy, not for profitability… good for them, not good for you…
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