“To try to use the data to pinpoint exactly what price you should be at or what occupancy you should be at is really taking a lot of random noise that's been aggregated and then trying to make business decisions around that,”—John An
Every short-term rental property is unique, and each guest values different property features when looking to book. Add to that travel trends are shifting quite dramatically right now, and it can be a gamble to rely on the data alone to set your pricing.
So how can you use the data to increase your revenue without increasing your risk?
John An is the Founder & CEO of TechTape, the Founder & President of Ohana Stay, and a short-term rental industry expert who consistently brings in returns at 20% to 50% above market. He's also written a chapter in the soon-to-be-released, The Book Direct Blueprint.
On this edition of Get Paid for Your Pad, John walks us through his 3-step approach listeners can use to increase their Airbnb revenue.
We discuss how to align your risk tolerance with your pricing strategy and nightly rate to achieve your goal occupancy level.
Listen in as John shares his hands-on approach to combining data with human skill to increase your Airbnb revenue by as much as 15-30%.
- John explains his thought process for revenue management
- The issue with the data in the STR industry
- What John looks at in the data increase revenue
- The two ways to come up with your base price
- What is the demand curve
- Why pace is a more important data point than price when trying to increase revenue
- John will share the 3 step approach listeners can use to increase their Airbnb revenue
- Why you need to determine your risk tolerance or that of the owner of the property you are managing
- Where your risk tolerance aligns with your pricing strategy
- How to use the nightly rate as the lever to achieve your goal occupancy level
- How to choose your time frames to establish an occupancy target
- Why it's essential to ‘keep your hands on the wheel' when adjusting your pricing strategy
- Why the holistic view can tell you just as much as your revenue about how your guest avatar is really responding to your property
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