Pro Tips for New Airbnb Hosts: The Fine Art of Discounts and Charges
Has your significant other ever found you awake at night, tweaking your Airbnb app's calendar for that elusive perfect price? If this is not you, I assure you, it was me.
If the above resonates with you, welcome to the struggle. Set prices too high, and you're met with silence; set them too low, and while your calendar may fill up fast, your profits will take a hit.
Airbnb is a true market in that the market will tell you what your listing is worth, not vice versa.
That's what Daniel Rusteen said in his book, “Optimize YOUR Bnb: The Definitive Guide to Ranking #1 in Airbnb Search by Daniel Vroman Rusteen.”
Although Rusteen manages vacation rentals, his pricing mantra holds true, even for smaller condo units like ours.
So, what can you do?
If you're a new host, consider offering a 20% discount on the first three bookings to launch your listing successfully. I covered this in the previous post, "Top 10 Tips to Get Superhost Status on Airbnb in 3 Months (or Less!)."
After this initial period, continue offering discounts through the platform to convert potential guests into actual bookings. If social media advertising feels complex, opt for simple, direct promotions via the app.
To do this, understand the basic types of discounts, promotions, and charges on the Airbnb app:
Discounts:
Adjust pricing to attract more guests based on the length of stay, ranging from 2-night to monthly discounts. Long-stay guests = less cancellations and less property damage. Attract them with discounts for 3+ nights. A word of caution: Flexible cancellation policies leave you scrambling for replacements. Opt for a moderate policy—five days of preparation for sudden cancellations.
Promotions:
You may also choose to spruce up your bookings with short-term discounts. For this, the minimum stay is 1 night, and the minimum discount is 1%. Go big with a 20% discount or more to unlock perks like a new price breakdown item, strikethrough styling, a special listing callout, and featured email placement. Lower discount percentages mean fewer benefits, so aim high.
Additional Charges:
Consider extra guest and cleaning fees as additional charges. If cleaning bites into profits, transferring the cost to guests is an option, but beware of price hikes. Experiment: Activate an extra guest charge post-1 guest for budget-friendly solo stays, yet maintain an average price for 2 guests. The extra fee per guest is ₱281 minimum, ₱16,848 maximum.
While I was aiming to be a Superhost, some promo features were locked away, such as last-minute discounts, early bird deals, and rule-based promotions! (Stay tuned; we'll dive deep into those later.)
If you haven't tested the basic discounts on the app, it's time to experiment! My experience? Specific date promotions and longer stay discounts were effective. They let me fill those empty slots and turn short stays into longer ones.
Mastering Airbnb pricing is an evolving journey, and experimenting with these strategies will help you find the sweet spot for your listing. Share your thoughts or experiences, and let's navigate the hosting world together!
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