Note: AirDNA itself is not an automated pricing tool.This makes it perfect for determining a high nightly rate that still has a chance of getting booked In my experience, this third-party tool optimizes for nightly rate. To determine what my highest price is, I use the AirDNA forecasting tool.Since I have a lot of time to get these dates booked, I set them at my highest price I open up my calendar 1-2 months at a time, typically 3-4 months out.Here are the three steps I take to determine my pricing on Airbnb: With your own hybrid pricing strategy, you can lean into the strengths of all of the approaches above while minimizing their weaknesses.Īnd, designing your own hybrid strategy is surprisingly simple. Pro tip: Pricing is just one of the 50+ ways your listing can be optimized today to start earning you more revenue today! Creating Your Own Hybrid Pricing Strategy That’s where creating your own hybrid pricing strategy comes in. And since VRBO doesn’t have its own automated pricing tool, you’ll have to manually update your VRBO pricing. With Airbnb Smart Pricing, your nightly rate might be so low that you never reach your full revenue potential. And because these tools often don’t work well, you might end up wasting your time, feeling frustrated, and ultimately losing out on a meaningful amount of revenue. But that comes at the cost of not getting as many bookings as you could. With third-party pricing tools, you’ll get your absolute highest nightly rate. Unfortunately, in my experience, no automated pricing tool works well enough for you to simply set it and forget it. When it comes to using automated pricing tools, you have two choices. Using an Automated Pricing ToolĪfter spending hours trying to manually calculate your pricing on Airbnb, you might be ready to give up and let an automated pricing tool do all the work. Learn more about why you shouldn’t manually calculate your Airbnb pricing. When it comes to maximizing revenue on Airbnb, your occupancy rate and nightly rate are everything.īut, no matter how much time you spend researching, you won’t find that information on your competitors without a third-party tool. Once you decide what fits the bill, you might scroll through pages and pages of Airbnb listings to find those properties.ĭoing so every time you want to update your nightly rate is unreasonably time-consuming.Īnd, you’re working with limited information. So, you have to decide what counts as ‘comparable’ on location, amenities, property type, number of bedrooms, maximum occupancy, and so on. To manually calculate your pricing on Airbnb, you’ll start by researching the nightly rate of comparable properties. You’re working with limited information.But this strategy has two major downsides: You could manually determine your nightly rate based on your own competitive research. ![]() Manually Researching and Calculating Your Airbnb Pricing I’m not affiliated with Airbnb in any way (other than being an Airbnb host, of course). As an Amazon Associate, I earn from qualifying purchases. ![]() If you click a link and make a purchase, I may earn a commission at no additional cost to you. In this post, I’ll walk you through all three options and the EXACT pricing strategy I used to gross $85,000+ my first year Airbnb hosting. Create your own hybrid pricing strategy.Manually research and calculate your nightly rate.When it comes to determining your nightly rate, you have three options: That’s because determining your nightly rate is tricky, time-consuming, and filled with uncertainty.Īt the same time, your pricing on Airbnb is the single biggest factor impacting your income. As a host, one of the hardest things you’ll do is determine your Airbnb pricing.
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