If you are already using PriceLabs, this is perhaps a moot post for you but if you are still on the fence or fall in DIY (do it yourself) category, read ahead. We have been often asked: What are the factors to keep in mind if I want to manage smart pricing myself?
Below is a list of pricing mistakes that some VR and Airbnb owners make - Are you making any of these mistakes & leaving money on the table?
Flat Pricing: Most short term rental owners, although difficult to believe, still have single price for all days. There is no variation for the day of the week, season or events. Now we know that it is difficult to gather some of this information but if you look at your booking trend, it should give you an idea of which day to price higher and which day to reduce.
Selling out too early: As you can imagine, renters tend to book early for high demand days (the proactive non-procrastinators!). It is prudent to (1) know what are the high demand days in your area to increase rates early, and (2) if it might be possible to get a longer booking during that time. As a general rule, if the booking is a few month in advance, you can assume that it is likely an important date. Therefore, increase your prices way ahead of your base price few months out.
Conceding to a discount request: Unless you have book immediately enabled, often customers ask for a discount while making a booking. Again, keeping a tab on listings in the neighborhood & overlap with any high demand days can help you conclude whether a discount should be offered.
Not syncing prices across channels: It is important for property owners to not just use one channel like Airbnb but to sync their prices across various channels such as homeaway, booking.com, tripadvisor etc.. This allows them to maximize their revenue by increasing the chance of a renter finding their listing. Several property management systems offer this capability and now several specialized channel managers such as Rentals United and BookingPal have begun offering services to owners too.
A one & done approach: If you have analyzed pricing for seasons, evaluated your competition and adjusted your pricing accordingly, doesn't mean your job is done. For one, these factors change every so often, and what if you rightly priced your house but now you are close to your booking date - would you rather discount for a guaranteed booking? No one has mastered the art of dynamic pricing better than airlines. Just because you have priced your rental once doesn’t mean that you should stop. You can use a dynamic pricing service like PriceLabs to price your properties or evaluate your pricing factors every so often yourself!
Hope you found these pricing tips useful. Are there other common pricing mistakes that you see owners and property managers make? Let us know by emailing us at firstname.lastname@example.org or by tweeting to us at @price_labs.
Last but not the least, check out our pricing predictions for your properties at PriceLabs .