Airbnb Pricing Strategy: Why Focus On Competitive Rates To Beat Competitors
Our Cape Town SuperHost team of memory creators Unhassle AIRBNB Management and Unlock Value For Absent Owners and Hosts like you. [/su_box]
You have read the previous Airbnb Host tutorial articles (here) in the series?
Airbnb can be really easy. But many are not doing great. Why?
Airbnb Pricing Strategy
One of the reasons:
They are oblivious to the relationship between competitive rates and getting many reviews quickly.
Cape Town Airbnb Management Agency
?Hi Johan, here. Welcome. What a pleasure. I appreciate your interest. I am one of the founding members of Agency.CapeHolidays.Info.
Our Cape Town SuperHost Agency of memory creators who Unhassle AIRBNB Management and Unlock Value For Absent Owners and Hosts like you.
You have read the previous articles (here) on exceeding guest expectations and are confident you are. It’s important.
Okay. You are a subscriber to our weekly owners Airbnb Whatsapp tips & Tricks. If not get it here (while on your mobile). I am so happy.
Today we look at why a fair deal – competitive rates – will make you more money.
Because deal-making rates compel Airbnb guests to book if you have only a few, or even, zero reviews.
What happens when guests see your amazing deal, even with no reviews?
Don’t be surprised if they take your offer quickly. Then they arrive and should go wow.
You asked for and they gave you a 5-star review.
Everything according to plan. A quick excellent review. With many to come.
Do you see where we are going?
By selling a fair deal they cannot decline. Speed increases. More bookings. More 5 Star reviews. More trust. Higher-income. And Airbnb shares the love.
It’s obvious, is it not?
But, unfortunately, all is not rosy yet.
You still have 2 outstanding concerns;
Not knowing why or even how to set competitive rates.
You know what occupancy is but how to use it as your driver to maximise income is not clear.
Let’s look at a few examples to clarify the why and address an objection you may have.
Next week we will look at Airbnb occupancy and then how to set competitive rates.
Airbnb Pricing Strategy: The Why
Assume you only have a few reviews. Or none. And a few reviews meaning? Less than 40.
With so few reviews, guests shy away from your place. They need an incentive to overcome the fear of not knowing if you are genuine.
Until that sweet deal or many reviews, why should they reward you with their money?
They don’t trust you!
Your task is to overcome this barrier to book.
It’s easy to fix….
I assume you have a sparkling & remarkable place, you addressed all possible objections, and you have professional photos.
Now, you sell them the deal they eagerly cannot and will not resist.
You want them to say,
“Goodness, check this place! It’s remarkable, it’s an absolute perfect deal!
Honey, unfortunately, no reviews. But at this excellent rate I suggest we take the risk“.
Airbnb Host Objection To This Airbnb Pricing Strategy!
Oh. I forgot. As a host, you may object and say “but this deal? …. It’s ridiculous, I’ll not give my place away!”
Yes. We have had Airbnb owners, here in Cape Town, who did not agree. But they felt that long slow-burning pain, banking little or no money.
I must say it’s frustrating to watch an owner fail even though she has a great place. Odd.
Be warned. It’s a costly mistake for the ignorant. Or is it arrogant?
When they changed their view, the floodgates opened. And Airbnb rewarded them.
Getting-the-deal rates are not ridiculously low.
No. It’s just enough to make them want to book. Find the sweet spot. And Tweak.
What happened when you got the booking quickly? No review, no trust. And, yet, they booked.
The guest sacrificed trust for greed.
Yes. It may not sit well with you but most of humanity desires a deal. It’s your choice. The question is; Why not let this work in your favour? Or choose the average Joe’s inaction.
Tomorrow and as the days continue you will be surprised by the many bookings.
Now you think this old African dude took you for a ride, your rates are set too low.
Rather, I’ll tell you, “you are becoming extremely successful. Not there yet but on your way”:
Guest’s resistance to stay evaporated.
You are getting feedback on your offering. Excellent.
Guest’s critique assists you in improving your offer.
You have regular money to bank.
And you accumulate trust – reviews. Quickly. I assume you have studied the previous articles (here)
Airbnb likes it when you show them LOVE!
They see your place hit the sweet spot. And they promote you.
Do you think old greedy Average Joe’s place with zero reviews and high rates will be promoted by Airbnb while guests constantly see it but reject it?
Airbnb’s algorithm sends old average Joe Airbnb’s listing to a dark dingy corner.
Go and check how many listings are on the first page of any Airbnb search. 20? Which get booked? Which get listed in the top?
The ones who convert to bookings. Or useless Joe?
If you don’t give Airbnb love why will Airbnb return the favour? No.
You give Airbnb love by making your home a great deal guests recommend with 5-star reviews.
Airbnb obviously prefers excellent hosts. It pays.
Okay. Any questions on competitive rates? Use Hashtag #AskCapeHolidays. I am eager to respond.
Why not like this video?
Next week we continue with the Airbnb Pricing Strategy.
I’ll show you how we double even triple your Airbnb income without increasing rates. Yes. True.
Let’s Unhassle Airbnb and Unlock Value together. Use #AskCapeHolidays to ask, subscribe.
And have fun. It’s free and easy.
Regards Johan Horak
Not everything that can be counted counts, and not everything that counts can be counted. –Albert Einstein