Opening your home up to guests is a good way to supplement your income during economically challenging times. Photo: Airbnb 

Love it or hate it, Airbnb is still usually the easiest — and sometimes most affordable — option. Globally, the platform has had roughly 1.4 billion guest arrivals since it launched in 2007. And on the hosting side of the platform, the incentives are even greater — hosts in the U.S. earned $22 billion in supplemental income last year, and 62% of U.S. hosts said they plan to use the money they earn to cover the heightened cost of living over the next 12 months, according to the platform. The Escape Home’s Danielle Hyams attended an Airbnb pricing seminar to learn how hosts can maximize profit. Whether you have an existing rental or are thinking about getting into the market, here are six tips to maximize your profit as a host. 

Macroeconomics can have an impact on your hosting business. For example, if there’s a recession going on, or the economy is struggling, demand for your property may be affected. Local demand is another critical factor. If your property is priced higher than similar listings nearby, there’s a chance you’ll miss out on bookings. However, if your listing is priced competitively, you’re more likely to attract guests and boost your earnings on Airbnb. The platform is rolling out new pricing tools for all hosts later this month. 

Events such as music festivals will impact the price you can charge for your rental. Photo: Eric Ward 

Take into account what is going on locally. Events like music festivals, sports competitions, or state fairs can potentially increase the demand for your space. The season can also impact bookings. For example, you may want to consider holiday travel in your area, such as the Fourth of July or other locally relevant holidays, winter school breaks or any other popular celebrations. People often book many months in advance for events like Coachella, so be sure your pricing is updated as those dates become available to guests. 

Use Airbnb’s smart pricing tool.  Adjusting your price over time helps you respond to travel trends in your areaThe smart pricing toolautomatically changes your nightly price based on demand, maximizing earnings for all dates you have available and taking into account details about your listing like property type, location, amenities and reviews. It helps you optimize your pricing without constantly monitoring it. According to Airbnb, in 2020, hosts leveraging the smart pricing tool earned 20% more than hosts not using the tool. 

Consider hosting long-term stays. Hosting long-term stays can help you fill your calendar faster by unlocking more nights with fewer guest turnovers. Long-term stays could also save you time and effort associated with managing your bookings, such as messaging guests and cleaning the space. Hosts can attract long-term stays by adopting weekly and monthly discounts. According to Airbnb, hosts that adopted weekly discounts earned around 6% more annually than hosts who didn’t. Hosts can also convert short-term bookings into longer stays by offering enticing deals for the weeks before and after the holidays. 

Consider offering niche amenities like pickleball courts. Photo: Frankie Lopez 

Offer amenities. Analyze the amenities that similar properties in your area are offering. In popular destinations like Joshua Tree, California, guests can become overwhelmed by options and often narrow down their search based on amenities. In addition to standard amenities such as a pool or being pet-friendly,  consider adding niche amenities such as a pickleball court or electric vehicle chargers to entice guests. 

Don’t try to be the cheapest. If you try to have the lowest price to fill your slot, it will end up being a disaster. You want to be competitive “When I look at the kind of bell curve for what rates are like in my area, I want to be in that center range. Because when people are searching, they kind of browse out all the top most expensive things. And then they cross out all the least expensive things. And they get to that kind of middle-of-the-road, where they want to be,” says longtime Airbnb host Clint Stoker, who has several properties in Joshua Tree. “That’s the biggest takeaway. I’ve helped so many hosts out here with our local host group. So everyone needs to join their local Facebook kind of group for your area. We help a lot of hosts that are having a really hard time that are pricing themselves so low, thinking that’s the only way they’re gonna get bookings, but they’re attracting the wrong kind of guests. They’re attracting guests that are just looking for a cheap place. They don’t respect what’s there because they feel that it’s so cheap.” 

Leave a comment

Leave a Reply