Airbnb Pricing Hacks You Need to Grow Your Bookings - Mini Series Episode 4 of 7 'Dynamic Pricing'

• Airbnb smart pricing ? NO

  1. They are incentivizing more bookings at cheaper rates so they can earn a

     platform fee

  2. Here is math on that if they get 3 bookings at $100 a night vs 5 bookings

     at $75 a night. Makes more sense to them to earn their percentage on the

     5 bookings at $75 a night...

• ○ Third Party Dynamic Pricing

i. Can be a smart idea, I am old fashioned and like more control and do things manually, however the newest tools are pretty great at forecasting supply, demand, events, and so on

1. They are affordable, many charge a setup fee, then 1% or so on revenues - but they can net you ~5% more revenue because of their demand-based pricing algorithms

2. Low demand nights can be filled with responsive revenue management so you don’t stay empty because your rates are too high in a slow spell

3. Vice versa for the more expensive dates, you want to maximize revenue by charging more because of the high demand and lower supply...

4. Hosts I have spoken to that use these tools are more sophisticated

   operators and earn 10% more than hosts that do not. There are outliers,

   however this is what I have seen

5. Get access to statistics and market research from the service offering

   dynamic pricing

6. The cons:

   1. Setup fees

   2. Costs - 1% or more of booking revenue

   3. Works better in major markets (they have way more data points to

      pull from)

   4. Constant updates require constant learning and adjustments

7. For our recommendation on pricing providers, please reach out to us by email, which will be in the show notes.