After all the listing optimization, upgraded amenities, interior design and, staging the final thing it all boils down to is price. Pricing will keep you booked or leave you with empty nights that you’ll never get back. That’s why today, we’re diving into advanced pricing strategies to maximize both occupancy and revenue. Whether you’re just getting started or you’ve been hosting for a while, these tips can help you drive better results for your Airbnb business.
What’s Your Occupancy Goal?
Before we dive into the strategies, let’s talk about setting goals. What are you aiming for as a host? There are four types of Airbnb hosts out there (it should be obvious that there’s only 1 type here to aim for):
- Hosts with bad reviews and no bookings
- Hosts with bad reviews but plenty of bookings
- Hosts with good reviews but low bookings
- Hosts with good reviews and high bookings
I’m proud to say I’m in that last group – good reviews, high bookings. But it didn’t happen by chance. It’s all about using the right strategies: being intentional with pricing, guest experience, and how you manage your listing.
The Real Deal with 100% Occupancy
I’m a firm believer in shooting for 100% occupancy, but I’ll admit, it’s no walk in the park. When you’re booked back-to-back, it takes a lot of effort to maintain that 5-star rating. Managing cleaning schedules, maintenance, guest check-outs, and check-ins can feel like juggling flaming swords. But here’s why I push for it: your property is a perishable commodity. Once that night goes by without a booking, it’s lost forever.
The key is finding the balance between pricing competitively while making sure your listing still reflects the value you bring. That’s where advanced pricing strategies come in.
Setting Your KPIs: Tracking What Matters
A critical part of hitting your occupancy goals is setting up Key Performance Indicators (KPIs). For example, if your target is 50% occupancy, aim for 25% during your market’s average lead time. Regularly track these numbers and adjust pricing when needed.
Calendar Management Hacks
One of the biggest levers you can pull for optimizing your pricing is smart calendar management. Here are a few tactics I’ve found useful:
- Set Minimum Stays: Adjust minimum stays based on the season. During peak times (like the holidays), go for more days. I use three-day minimums in Big Bear which is a weekend market. I use 7 day minimums in Hawaii which has longer average stays. During off-season? A two-day minimum might be better. You might even drop to 1 day at the last minute.
- Manage Orphan Gaps: Those little gaps between bookings can hurt your revenue. I use PriceLabs to automate the filling of those gaps. For example, I have a 7 day minimum stay in Hawaii by default. Anytime there is a gap in my calendar that is less than 7 days my calendar automatically adjusts to make that gap bookable. I’ll even lower the price to get those days booked if necessary. Even at a lower rate, it’s better than nothing.
- Cascading Minimum Stays: This feature allows you to require longer stays further in advance but reduce it as the check-in date approaches. For example, in Hawaii my minimum stay by default is 7 days. When I am within 30 days of a date and it’s still not booked that drops to a 3 day minimum. When I am within 6 days of a date and it’s still not booked that drops to a 1 day minimum.
Dynamic Pricing: The Game Changer
Dynamic pricing isn’t just for airlines and hotels – it’s something every Airbnb host should use to their advantage. Here’s how I approach it:
- Adjust Base Pricing: You need to understand your market. In places like Big Bear, weekends book fast, but weekdays can be tough. I significantly lower weekday prices to get those bookings in. I have to make my weekdays 35% lower than what Pricelabs suggests in order to get those to book.
- Seasonal Adjustments: Different times of year call for different pricing strategies. I like to break my year into four segments: high season, two low seasons, and mid-season. This allows me to stay competitive and adjust for demand changes.
- Occupancy-Based Adjustments: Tools like PriceLabs allow you to set occupancy-based pricing. If my property isn’t booking up, the tool automatically lowers prices. On the flip side, if demand is high, it bumps up the rate.
The Secret Sauce: Occupancy-Based Pricing
I’ve got a listing in a highly competitive market. Even though my reviews are great, I couldn’t rely on them alone to stay fully booked. What made the difference? Occupancy-based pricing.
This approach means I’m always pricing my property based on demand. It prevents me from overpricing, which leads to empty nights, or underpricing, which means I’m leaving money on the table. Just last August, this strategy boosted my occupancy rate by 52.5% compared to similar listings in my area.
And the best part? Once you set it up, it only takes 20-30 minutes a week to fine-tune your rates. That’s a small time investment for a big return.
Tracking Your Ranking
This is a crucial step a lot of hosts overlook. Use tools like Rank Breeze to track your listing’s position in Airbnb’s search results. If you’re ranking high but not converting those views into bookings, it might mean your pricing is off compared to your competitors.
I’ve gotten so good at optimization that sometimes I outrank myself. My 2300 sq ft property might be ranking at the same price as a 6500 sq ft palace. I need to be aware of who my competition is in these scenarios to make sure I’m priced low enough to book.
Wrapping It Up
Advanced pricing optimization might sound intimidating, but once you break it down, it’s actually pretty straightforward. By setting clear goals, managing your calendar strategically, and using dynamic pricing, you can take your occupancy rates and revenue to new heights.
And hey, if all this still feels overwhelming or you want to dive deeper into your own specific situation, let’s chat. I’m happy to help you craft a custom game plan that works for your property. I can be reached inside our Facebook group. Just send me a DM.
Got questions? Let’s continue the conversation in our Facebook group! I’m always in there answering questions and helping hosts just like you. Let me know your thoughts, and let’s keep building your Airbnb success!
