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Pricing strategy

JTVRs
Jul 24, 2019 11:15 AM
Joined Jun, 2018 385 posts

At this point, I'm planning the following strategy. Let me know if there's any holes in my assumptions.

I will set base pricing and minimum stays on pricelabs. I'm going to use OwnerReservations channel connections to knock off 20% on Airbnb, accept that price on VRBO and TripAdvisor, and add 20% to booking.com., trying to capture a spectrum of possible prices. Airbnb seems to attract bargain hunters.

Paul W
Jul 24, 2019 11:02 PM
OR Team Member Joined Jun, 2009 710 posts

Yep that will work. I think you're probably leaving money on the table with Airbnb - travelers in my area tend to pay full or higher price with Airbnb - but every area is different. It depends on if it's a full house, luxury, apartment, etc of course.

Lydia B
Jul 24, 2019 11:05 PM
Joined May, 2019 159 posts

Do you want bargain hunters in your place? My rates on ABB are actually a bit higher. Nothing dramatic, but higher. Also - do you live in a place where ABB collects some taxes for you but you still have to collect taxes/fees? That might come in to play when deciding what your rates should be.

Paul W
Jul 24, 2019 11:08 PM
OR Team Member Joined Jun, 2009 710 posts

Yes (to Lydia). Both great points. Airbnb is often inflated because Airbnb guests can be problematic types and you may need to adjust for taxes and other things they don't include.

BlueMtnCabins
Jul 25, 2019 10:27 AM
Joined Jun, 2016 1005 posts

JTVRs said:

. Airbnb seems to attract bargain hunters.

I found to be just the opposite. Airbnb rarely books, but when they do, they rarely bargain. My rates there are 8-10% higher than direct.

JTVRs
Jul 25, 2019 12:51 PM
Joined Jun, 2018 385 posts

Ok, well the theory is that when you are new, you need to charge someone less to get reviews. And I have lost 40 percent of the season, and thought using several listing sites at different price points would maybe snare me some higher booking prices. At this point I need heads in beds.

Any tweaks to the above keeping in mind I am brand new are appreciated

BlueMtnCabins
Jul 29, 2019 11:16 AM
Joined Jun, 2016 1005 posts

JTVRs said:

Ok, well the theory is that when you are new, you need to charge someone less to get reviews. And I have lost 40 percent of the season, and thought using several listing sites at different price points would maybe snare me some higher booking prices. At this point I need heads in beds.

Any tweaks to the above keeping in mind I am brand new are appreciated


yes, but you do not want to get reviews at the expense of having risky guests, do you? If anything, I would lower rates on VRBO but not Airbnb and Booking as latter 2 are supplying more risky guests generally.