As of December 7, 2020, Airbnb hosts who use third-party property management software are required to use Simplified Pricing (unless your listings are in the US, Canada, Mexico, Argentina, Taiwan, Uruguay or the Bahamas). This means there will be no service fee visible to the guest, and the host will pay 15%. So, how can you adjust your pricing to accommodate this new policy?
Anurag Verma is the Cofounder at PriceLabs, a dynamic pricing tool and market data resource for short-term rental hosts. PriceLabs uses a data-driven approach to help STR operators manage pricing and stay restrictions, growing their revenue in the process. Anurag has eight years of experience in the travel industry, and he is an expert in the field of in revenue management.
On this episode of Get Paid for Your Pad, Anurag joins me to discuss how to adjust your rates to accommodate the new 15% Airbnb host fee. He explains how the length of stay and lead times have shifted in the COVID era, offering advice for STR hosts around how to optimize revenue in an uncertain time. Listen in for Anurag’s insight on leveraging market data to make pricing decisions and learn how YOU can benefit from using the PriceLabs revenue management platform!
Click on the video below to watch and listen to this podcast episode:
How to adjust your rates to accommodate the 15% host fee
- Raise prices in order to keep your payout the same
- Go through the math carefully, use PriceLabs blog
The two STR variables that have changed in the COVID era
- Length of stay increase (double in some locations)
- Lead time shorter, booking rush 2 to 3 weeks out
Anurag’s advice on planning if you’re in a summer market
- Go ahead and raise rates for summer
- Monitor market data, lower prices as necessary
What STR hosts are doing to generate more bookings
- Offer discounts to guests who extend their stay
- Share discount code with previous guests
Why STR guests have more flexibility right now
- Ability to do remote work from anywhere
- No penalty to change flights
Anurag’s tips for optimizing your revenue in 2021
- Use market trends to adjust last-minute pricing
- Don’t discount TOO much and don’t panic
- Experiment with one property to see what works
How PriceLabs’ Market Dashboard feature works
- Enter address and select radius
- Receive email as trends change
How to use market data for strategic pricing decisions
- What kind of bookings are happening?
- Am I getting that kind of booking?
- Will I benefit from that kind of booking?
- How can I attract bookings like that?
The benefits of leveraging the PriceLabs platform
- $10 flat fee for Market Dashboard
- Dynamic Pricing based on # of properties
Connect with Anurag
PriceLabs [Code GPFYP]
Jasper’s Price Adjustment Calculator