If you are going to rent a property as a short stay holiday let, you will need to create a pricing strategy to avoid leaving money on the table. The type of property that you’re offering is important, you should never underestimate the importance of having a good strategy in place. A good pricing strategy will make sure that you are renting your property at competitive prices, compared to other similar rental properties in the area. Creating the perfect strategy isn’t always easy, but it is well worth the time and effort that it takes. By carefully considering what you are charging and when, you can increase your rental income in a significant way. Airbnb or Trip Advisor hosts that don’t have a pricing strategy usually find that they suffer in the earnings department. Not having any strategy at all can lead to inconsistent prices for guests and confusion for you.
Creating a pricing strategy
Whether you are renting out a property on Airbnb, Expedia, or Booking.com for the first time or you’re an existing Airbnb Superhost that’s just not having any luck with the whole process, you may want to consider creating a brand new self-catering holiday home pricing strategy. If you already have a pricing strategy, it may be time to make some necessary amendments. Though making a great pricing strategy may not initially seem to be an easy task, there are some simple things that you can start with that will make a difference right away. In order to get the most out of your holiday home pricing strategy, you should:
- Do a thorough research of the property’s location and the surrounding area– When you are creating a holiday home pricing strategy, you should take into consideration where the property is located and the local area. Properties that are located in busier and more sought after city centre or scenic coastal areas can be priced higher than those that are located in rural neighbourhoods. For example, rental properties in the centre of Dublin, Cork, Limerick, Galway, or Belfast can be priced higher than those on the outskirts as they are in a busier area. In order to get a good idea of what a standard price would be for your property, take the time to check out what other similar properties are being listed for on Airbnb, VRBO, Booking.com, and Trip Advisor. Then, price yours accordingly. If you price your property a lot higher than similar properties, you could miss out on bookings. If you price your property a lot lower than the location calls for, you could reduce your potential rental income.
- Update prices regularly– Many property owners underestimate the importance of changing their rental prices regularly, which can see them missing out on a significant amount of money. When you are making your holiday let pricing strategy, change your prices depending on the day of the week and the season. This could include charging more at weekends, during school holidays and at Christmas. You may even want to charge more during festivals and when special events are being held nearby.
- Charge more for extra services– If you provide additional services, don’t be afraid to charge guests accordingly. In fact, most guests will be willing to pay an additional cost if you are providing them with something they perceive as more valuable. If guests want an extra bed, add a small fee. If guests want to add an extra guest or you are paying for professionals to clean the property before guests check in, ensure that this is covered in the price. Not charging more for extras is one of the ways that many holiday home hosts reduce their potential income.
- Longer term guests should have a booking incentive– Though many homeowners use Airbnb for short term rentals, these type platforms also works really well for much longer stays. There are a lot of benefits to renting properties on a long-term basis, such as not having to handle the change-over of guests and not having to pay for regular cleaning. If you are looking to attract long term renters, consider offering weekly and monthly rates as a way to entice them. Long-term rentals are ideal for anyone who is relocating to a new area and need somewhere to stay in the meantime, as well as those working abroad.
- Short stay guests expect to pay more, price accordingly– It’s common for homeowners to factor short-term stays into their pricing strategy. It isn’t always cost effective for guests to only stay for a few nights, as the cost of the booking won’t always make up for the cost of cleaning and the time it takes for you to manage their stay. By charging more for the first few nights, you can guarantee that the booking is worth your time. This can also encourage guests to stay for a longer duration, as they’ll be getting more for their money.
If you are new to using sites like Airbnb, Booking.com, or Expedia, you may find yourself confused and overwhelmed when it comes to creating the perfect pricing strategy. If you are, you’re not alone. It’s one aspect of renting a property on that a lot of property owners tend to struggle with. After all, how are you supposed to know how much to charge guests and how can you guarantee that you are earning as much as possible? When in doubt, seek out the help of experts, such as the team here at Cloverleaf.
We offer a wide range of Airbnb management services in Ireland. This includes managing guest bookings, creating pricing strategies, and perfecting property listings. For help and advice, get in touch with the Cloverleaf team. Contact Cloverleaf today on +353 09 144 7194 or online.