One of the more complicated aspects of running an Airbnb business is the pricing. It’s extremely complicated to calculate what the optimal price for your listing is, specially because it should vary with demand and several other factors.
Hotels and airlines face a similar challenge and they hire dozens of mathematicians to provide a solution. The reason is simple: setting prices correctly can significantly improve income.
As an Airbnb host, we don’t have the luxury of an analytics department so we have to use our best judgment. Even if we do come up with a good way to calculate prices, it’s still a hassle to constantly update our calendar and change our prices according to demand.
Fortunately, there is now a perfect solution for this problem: Beyond Pricing. This application calculates the optimal price for each day in your calendar, based on the following criteria:
• Historic performance of your listing
• Performance of nearby listings
• Daily demand (based on hotel prices, flight data, and conferences)
The best thing is, the app connects to your calendar and updates the prices automatically! It’s the best Airbnb pricing tool available to Airbnb hosts.
I’ve talked to the developers of the app and they gave me insight into the algorithm that calculates the prices. I’ve used it for a few months now and I’m very happy with the results, so I can confidently recommend this to you. I’m positive using the app will increase your income and save you time by updating the calendar for you.
If you want to try it out, I have good news for you! I’ve negotiated and exclusive deal with Beyond Pricing. If you sign up now, you get the first month for free and a $60 credit! Since Beyond Pricing charges 1% of your revenue, this $60 would give you an extra three months if you make $3,000 a month and an extra four months if you make $1,500 a month.
Beyond Pricing is currently available in most major US cities. London, Madrid, Barcelona, Rome, Amsterdam and Tokyo will follow soon and it should be available worldwide by 2015.
You can already sign up wherever you live and you will get notified when the service will go live. For more information on Beyond Pricing, check out our interview with the president and co-founder, Ian McHenry.
Here’s a screenshot to give you an idea how it works. Once Beyond Pricing connects to your Airbnb, it automatically updates prices every day. However, you always keep full control over your calendar. You can override prices if you like.
The pricing strategy that Beyond Pricing uses is to predict the demand for your listing based on visitor stats, occupancy levels of other Airbnb listings, hotel data and even flight data. They then use a sophisticated pricing model to adjust the prices according to other factors such as timing and gaps in your calendar.
For every day, Beyond Pricing shows the different adjustments to the base price. This way, the Airbnb pricing structure stay transparent so you know how the prices are calculated.
If you want to try it out, use Beyond Pricing referral code GP4YP to get the first month for free plus a $60 credit towards future months or click here to sign up. I highly recommend it!
Watch this video to see this Airbnb pricing tool in action:
PS: For transparency, I do get a small commission if you sign up with Beyond Pricing at no extra cost to you. This doesn’t influence my opinion though, I personally use Beyond Pricing as I think it’s the best Airbnb pricing tool out there. Thank you for your support!