Why Knowing How Much to Charge for Airbnb Listings in Your Market is Essential
Pricing your property based on several factors delivers the most advantageous Airbnb pricing strategy. Hosts and PMs who utilize a dynamic Airbnb pricing tool to optimize their pricing strategies outperform the competition. This means adjusting your prices to account for several factors.
That’s difficult without knowing what’s going on in your market, especially at the individual property level. If you don’t price appropriately/competitively, you’ll miss out on landing more guests and end up earning less revenue. AirDNA’s new dynamic Airbnb pricing tool simplifies and expedites your pricing strategy
Welcome to Smart Rates, AirDNA’s Dynamic Pricing Tool for Airbnb Rentals
Smart Rates gives you the power to price your property based on the most sophisticated short-term rental data available. Property managers and hosts alike benefit from Smart Rates’ advanced algorithm and data science that powers the most accurate Airbnb pricing tool.
It reflects how Airbnbers operate in real life: set a base rate, and make modifications based on different days and several attributions (which we’ll get into in just a bit). Besides seeing which attributions’ values make up Smart Rates’ recommendations, you’ll be able to see how and why attributions impact the prices you see.
In short, Smart Rates removes pricing confusion and gives users the power to price their property more competitively and confidently than Airbnb Smart Pricing and other dynamic pricing tools available.
How the Smart Rates Pricing Tool Works
In a nutshell, Smart Rates simplifies how to price your Airbnb. Granular, real-time data enables you to easily optimize your Airbnb pricing strategy based on personalized rate recommendations.
Select an aggressive pricing strategy to maximize revenue or a conservative pricing strategy to boost your occupancy rate. Just follow these steps.
- Connect your property through easy-to-use navigation. Just copy your Airbnb listing URL and drop it in the box. Once it’s in there, you’ll just need to verify it and you’re good to go.
Step 2: Create your Custom Comp Set
- More data doesn’t help you if it’s not the data you need. Creating a Custom Comp Set enables you to keep tabs on only those properties that are your direct competitors.
- You’ll get key insight into competitors’:
- You only need to save 5 properties, but the more you save the better. Aim for 20 if your market size allows. That way, you’ll get a diversified sample size, minimize outliers, and see the data that’s most relevant to your goals.
Step 3: See your booking performance score
Once you’ve created your comp set, your My Properties dashboard displays three metrics that help gauge the health of your property’s future performance. These metrics are updated weekly, and they each measure the future performance of your properties.
- Future Occupancy: How many nights is your property booked over the next 6 months — and how does that compare to the average of your comp set? Future Occupancy measures the difference.
- Booked Rate: Are your listings getting booked at higher or lower rates than those of your neighbors? ‘Booked Rate’ shows the percentage difference in ADR between your properties and your comp set average.
- Lead Time: Do you tend to pick up last-minute reservations or get booked months in advance? And how does that trend compare to your neighbors? ‘Lead Time’ is the number of days between when a guest makes a reservation, and when they check-in.
After considering all variables, each of your properties is given a Booking Performance Score — a simple metric that gauges the health of your properties’ future bookings compared to its comp set. It measures your future RevPAR, and it’s weighted by seasonal demand (bookings made during high-demand months are valued more than those made during low-demand months).
Think of it like a credit score — an easy way to keep tabs on how your short-term rentals are set to perform over the next 6 months. It’s updated weekly, and empowers you to make smart adjustments to impact your booking performance.
Step 4: Navigate to Smart Rates
- Here, you’ll enter your base rate and can then select the pricing approach that’s right for your goals.
- Choose between conservative, aggressive, balanced, or custom recommendations to get the results you want. You can even include minimum and maximum rates, as well as one- or two-day orphan day discounts.
Step 5: Get Familiar with Rate Recommendations
- Smart Rates is the most powerful dynamic pricing tool available, and understanding each metric elevates your pricing strategy.
- Take some time to get familiar with market rates, comp set rates, how daily rate recommendations are calculated, and how to easily navigate Smart Rates.
Smart Rates is Now Integrated with FutureStay
The Smart Rates integration with Futurestay helps you optimize and automate your vacation-rental pricing. It gives you a competitive edge with personalized pricing suggestions that maximize both revenue and occupancy. With customizable settings and clear explanations behind each rate suggestion, Smart Rates is the industry’s most powerful, easy-to-use pricing tool.
Clarity Meets Personalized Airbnb Dynamic Pricing
Smart Rates builds on the firm foundation of AirDNA’s data science and algorithm used to generate the most accurate rate recommendations. With honed-in accuracy, property-specific pricing promises a more accurate and personalized recommendation.
The best part? It utilizes more granular data to deliver rates that actually reflect market factors. No other dynamic pricing tool comes close to the power, customization, and accuracy Smart Rates delivers.
Dynamic Pricing Control
- Customize your Airbnb pricing strategy
- Set minimum and rates
- Select maximum ADR or occupancy rate
- Choose aggressive or conservative pricing
- Offer orphan day discounts to earn potentially missed revenue
- Uncover underpriced days: increase price and maximize revenue
- Discover overpriced days: decrease price and increase occupancy
- Peer into the past and future to see how holidays, weekends and weekdays, real-time demand, lead time, and seasonality impact recommended rates.
- Remove uncertainty over why your dynamic pricing tool recommends certain rates.
- Weekly seasonality: Get clear insight into why rate recommendations often increase during the weekend and decrease during the week.
- Yearly Seasonality: Understand how seasonal markets like ski towns and beach resorts are priced during the busy and slow seasons — and how to price accordingly.
- Holiday Seasonality: Plan ahead for local holidays. Smart Rates takes into account holidays around the globe and recommends rates based on these busier periods.
- Lead Time: Know how far in advance guests book stays. Lead time is the period between when a guest reserves a room and the dates of stay.
- Demand: See how often rooms in your market are booked throughout the year based on annual occupancy and listing growth. This is the cornerstone of Smart Rates accurate pricing.
- Orphan days: Give guests who want shorter stays a discount if they request to book between others’ longer stays. Don’t want to offer a discount? No problem. You control this setting in Smart Rates.
- Get property-level recommendations from more than 10 million listings.
- Trust the most accurate vacation rental software to price your property competitively — and smartly — based on sound data unavailable elsewhere.
- Leverage Smart Rates’ accurate, algorithmic pricing to simplify and expedite your pricing.
- Streamline your decision-making process and save hours of pricing planning.
- Create a competitive set after onboarding your listing to MarketMinder
- See exactly how your competitors price their properties
Get the Most Accurate Dynamic Pricing for Your Short-term Rental with Smart Rates
Accurately pricing your property has traditionally been one of the most challenging aspects of operating a short-term rental. With Smart Rates, those days are over.
No other Airbnb pricing tool comes close to the accuracy, customization, and ease-of-use that Smart Rates offers. And, as spring and summer of 2021 are expected to be incredibly busy seasons for travel, having the data you need to capitalize on travel’s return is invaluable.