Spy On Airbnb Competitors Pricing To Find your Most Competitive Airbnb Rates
And estimate a reasonable annual income.
Simple and effective.
However, if you are pushed to make lots of money quickly be careful. See my tip the here.
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Y ou have read the previous Airbnb Host tutorial articles (here) in the series?
Okay, Let’s spy on our Airbnb competitors and use the learnairbnb.com research to set our competitive rate and estimate our potential annual income.
As an example l, I’ll be using a 2 bedroom cottage, at the southern tip of Africa.
The owner wants 120 000 bucks annually.
But we cannot just agree blindly. We must verify.
What do we need to check if it is possible?
A conservative occupancy we should easily achieve.
In house we use 35% when starting with zero reviews.
And any great host with a nice place should easily achieve it.
Spying on our Airbnb competitors to get their daily rates and their number of reviews.
But to do we need their occupancy.
How lucky are we? We have a great secret to get exactly that.
You know that he LearnAirbnb study, using 6 million bookings, showed us the relationship between the number of reviews and occupancy.
By knowing our competitor’s number of reviews, using the study we can convert reviews to occupancy. Cool.
If you worry. Don’t worry. Keep focus. It’s easy. Too easy.
Let’s look at the Learnairbnb.com graph.
BTW. Subscribers to this channel can access all resources for free. See the resources here.
Now that we have occupancy we multiply it by the daily rate to estimate annual turnover.
Let me digress and show you how to estimate annual income:
Turn to screen
How to calculate occupancy
Is that easy or what? Hit that like button. I like feedback to improve.
Okay. Just a reminder of what the owner wants:
He wants 120 000.
And we have seen at our conservative 35% occupancy or 128 days booked.
120000 bucks divided by 128 days means 939 bucks per day. Is 939 competitive a competitive rate?
We will now go and spy on our Airbnb competitors. 5 or more. We will take note of their number of reviews and their daily rates. Easy.
See the video above,
Now that we have the spy data LET’S convert the number of reviews to occupancy:
Excellent. You now have a simple but effective tool to estimate reasonable competitive rates and annual income.
You also by now know how to use occupancy, competitive rates to drive income.
Questions so far? Use #AskCapeHolidays and ask below.
Tip & Warning: Sometimes you are in a pickle and must make big bucks soon. Or you consider an Airbnb investment property but you can only do it with high payments monthly payments…….
Get easy access to this tip, the Learnairbnb.com study, and all the spreadsheets I used. Get it all here.
“To build a long-term, successful enterprise, when you don’t close a sale, open a relationship.” – Patricia Fripp