Last Updated on September 12, 2019 by Lucienne
When my husband and I bought our house two and a half years ago, one of the selling points for me was the Cosy Garden Cottage at the back. I had always wanted an Airbnb and this was my chance! I put a huge amount of effort into setting the cottage up and making it a place I thought guests would love to stay in.
Once you have set-up your space and made it perfect, the next very important step is to set the right price for your listing! Here are a few guidelines to help you price your space right.
Starting Out
When you first open up your listing and you are trying to catch that first booking and that first review, it is a good idea to price yourself a little lower than what you would hope for. Airbnb usually have a recommended price, which has been calculated by one of their many algorithms, some of the considering factors at arriving at this price will be the demand in your area and the number of other Airbnb listings in the area. When you have successfully bagged your first couple of reviews you will then be in a position to start inching your price up but don’t ever just do it blindly there are always factors to consider.
Know your competition
Take a look at the other listings in your area. What is their listing price? How often are they booked? Which ones land at the top of the page on your search? How many listings are there in your immediate area? When I first set-up my Airbnb two and a half years ago there were approximately twenty listings in my immediate area. Now there are over sixty listings so the competition is a lot greater than when I first started out. I try to keep my price in the middle of the range for my area.
Price according to your amenities
Compare the amenities you offer to other people in your area and price according to what you offer. You might not necessarily be able to offer as much as a host offering television, air conditioning, pool and indoor fireplace. But if you add any of these be sure to adjust your price slightly to take these into consideration.
Smart Pricing
I use the smart pricing tool that Airbnb offers, I set my minimum price so that it is not too low and leave my maximum price very high. What this tool does is consider the demand for your area. If there is a sudden spike in the demand over a weekend due to some event that is on, the smart pricing tool will push your price up as more people start booking in your area.
Extra charges
Airbnb has an extra charge tool where you can set a cleaning fee, security deposit, charge for extra guests and weekend pricing. Being a small garden cottage my space can take a maximum of two people comfortably.
My base price is based on one person per night. I have added an extra charge for an additional person per night. After all, having an extra guest is going to cost you more in laundry costs, energy costs and amenities. Set a cleaning fee per booking. Whether you do the cleaning yourself or get someone else to do it, it is going to cost you something for cleaning to make your space fresh for the next booking.
Weekend pricing, use this tool! Demand for weekend accommodation is generally higher than for during the week stays, why not capitalize on it. When setting your price here check to see what other people in your area are charging.
Seasonal Pricing and Special Events
If you live in an area subject to seasonal pricing be sure to adjust your price accordingly for the season. For example, most seaside cottages will have a much higher demand during the summer holidays. This is an opportunity to capitalize.
Be aware of any special events in the area. Concerts, graduations, sporting events and conferences can all lead to a higher demand for accommodation in your area. Be sure to adjust your price accordingly.
The biggest message to take home from this post is not to set your price and leave it. Be aware and manage your price continuously. This does not necessarily mean to always be pushing your price up but rather to always ensure you are maximizing your return while keeping your booking rate high.
Take a look at my listing of my Cosy Garden Cottage, perhaps you will get a few ideas or share your ideas with me! They will be most welcome.
If you enjoyed reading this post you may like some of my other posts:
How to reach Super Host on Airbnb
4 tips to set-up a space for Airbnb
How to set-up a cottage for Airbnb
