Learn This 7 Figure Airbnb Pricing Strategy For BIG Revenue Hosting Your Property
Articles,  Blog

Learn This 7 Figure Airbnb Pricing Strategy For BIG Revenue Hosting Your Property


today let’s increase your revenue by
teaching you a valuable correlation between your occupancy and your nightly
rate let’s jump right in all right welcome back Airbnb family so this is a
really fun video about an extremely valuable concept that you need to
understand and I think a lot of you are getting backwards it has been embedded
in some previous pricing strategy videos which a lot of you are on this channel
to learn how to price your listing and make more money so the problem with
showing you this concept is the calendar visualizing this in a calendar is not so
easy so I’m going to do something for you here I’m gonna visualize your
listing calendar as a timeline okay this is kind of important so I’m gonna
use some colors we’re gonna use green for bookings blue for views and purple
for missed opportunities because you’re missing some opportunities get it okay
so there’s a few things you need to know this timeline represents let’s put tea
for today that’s today these are weekly increments this is a
month and a half and further up now the bottom will be views okay when
somebody’s searching for you this would be if they viewed you or
could not view you and let’s say that this is one listing you get like an
average amount of views of the say 150 views per month this is a metric and up
here will be your bookings okay so a lot of you know my pricing strategy is to
take whatever Airbnb recommends you should charge and raise at about 35 or
40 percent to give you room to do a monthly discount that’s a good idea
now you should also have a weekend price to prevent people from booking like one
weekend night and ruining your calendar which we’ll get into a little bit more
detail also so rule number one whatever your nightly rate is if you have 100
percent occupancy which means if you have no bookings then you should equal
100 percent of your price right you are not giving discounts if your calendar is
completely open and this might scare you let’s say aside from like slash pricing
which let’s say it’s like these are the three days before arrival I lower my
rates like Priceline would right for last-minute bookings that’s
one thing that I do do but all of this open real estate here you’re not going
to drop your price on that all right if your prices if your prices are listed
properly you won’t have to discount this open calendar is actually good for you
and we’re going to show you why now so this 150 views that you get they have to
have the availability your your listing has to have the availability in order
for somebody to see your calendar so for example let’s say somebody is going to
view for a week they’re looking for a booking check in this day check out that
day you have to be at 100% available during this time so if somebody wants to
you know say booked for about a month you have to have all these dates
available right somebody’s coming into booked couple days here these are all
views to look at your listing that could convert to a booking and then let’s say
that this person here decided a book and this becomes a booking okay so now that
you have a booking here if somebody wanted to know check in today and leave
a week from now that becomes a missed opportunity you don’t even get the view
because you don’t have the availability these days to host them so you don’t pop
up in the search right so this 150 average views per month takes into
consideration the fact that you’re not available some days there’s more
searches than 150 what you’re getting views based on searches so the way the
conversion works is that there’s a total number of searches in your area you show
up you have impressions so you’re not going to get an impression on this which
means you could not get the view right so we’ll do a future video on converting
from impressions to views because that’s important to you but this is about
getting your impressions and assuming that a certain percentage are views so
now if you get another booking in the future here
say somebody books for these dates then if anybody is searching for any period
of time here like a view this length this length or this like you’re not
going to pop up any of these times because you cannot accommodate those
specific dates 100% of the time so because of this your calendar is no
longer 100% open because you have these two bookings which means you’re not
going to get as many views which means you need to convert a higher percent of
the people who see your listing so if you’re going to get the rest of
your calendar filled up like especially let’s say you have this happen
right so now you’ve got a three-day stay here you now have what looks like to be
a three-day opening here and a two-day opening here and you have a one-day
opening here and then you have availability like that these dates are
fine right these are far away and they’re open right you there’s not
really an issue if you have a weekly discount and somebody books for a week
here they’ll still get that weekly discount so there’s no need to really
lower your rate but this two day the three day and the one day you your your
weekly and monthly discounts aren’t valid anymore people can’t book for a
month or we can get those discounts so your price should actually lower these
dates because two big reasons one is a monthly or weekly discount is not
possible so the rate that you were happy getting with that monthly discount you
can lower by roughly that percentage so if you have two days open here and your
monthly discounts 30% you can lower your rate 30% here now if it gets to be
within a certain window of time this these dates are compromised because the
only way you’re going to get a view is if somebody searches for one or two days
in that exact date range if somebody wanted to do this search that search is
suddenly not possible is it this one is too long for anybody to see these two
available days that becomes that get it so you will get less views on what we
call orphan two days so lower your nightly rate by the percentage of
discount you were willing to give them anyway in order to start to get these
lit these booked but when you get into some sort of crucial period of time and
on my research it looks about three weekends out so when you that’s roughly
16 to 21 days out based on what day of the week it is when you cross that 16 to
21 day threshold you should start lowering based on the fact that an
orphan day has less time to get booked because since it’s going to get less
views than normal this monthly amount 150 views combined by a cop
calendar your you might get 20 you might get 30 views in the next 14 days and you
need to convert one of those in order to get booked otherwise you’re not going to
get the booking you have it you probably have a cleaning fee in this as well so
now if you’re trying to get $90 a night you lowered it 30% you’re at $65 a night
plus your cleaning fee a two night booking would be 130 plus your cleaning
fee you get like 130 like 160 hundred and seventy dollars for those two nights
well take it to here you’re lowering your rate even more so
that’s 65 a night you could drop it to like 55 57 a night here I’m dropping it
35 a night day of Plus my cleaning fee so I’m collecting $75 for a studio $70
for studio maybe $85 for a studio or one bedroom last minute including my
cleaning fee so that way I get 100% booked because that’s what it takes to
get booked last minute because there’s gonna be very few views left so with
that said if you want to be able to do something like that you also have to
have a lower cleaning cost than some of your competitors which means you hire
your cleaners in-house and that’s another video as well which we’ve talked
about if you you can just go back in the channel we talked about housekeepers so
review if you have open space you have a big price because you can take this
booking down here this big blue ones the one you want the moment that these green
lines these bookings happen in your calendar the spaces in between become
harder to book and it’s normally not a problem like out here but the moment it
becomes last-minute because you’re getting less views you need to convert a
higher percentage of your views into sales so lower your prices on your
orphan days because you’re going to get more purple lines instead of blue yes
color coding is fun so if you have any questions about this feel free to leave
it in the comments we’re going to do more pricing strategy videos in the
future and of course we’re going to have a big huge course with a gigantic
pricing strategy section that’ll allow you to manage multiple listings
enterprise level stuff too if you have a lot of listings you’re going to want to
see it I get so excited shooting these videos for you that I forget to do one
key thing that I think every other YouTube blogger gets right which is to
ask you to like video if you enjoy the content like this
video it helps give me some extra reach so more people can see it and make a
couple cents can you believe it I’ll make a couple cents every time somebody
watches this video that adds up helps me by erasers for the whiteboard and some
markers with that set I think about 60% of you are subscribed so to you thank
you and the other 40% not subscribed yet to this channel hopefully I’ll earn your
click one day but YouTube is not the only way to you know stay in touch with
air B&B automated and we do other content too like some of you know that I
curate room designs and stuff like that which you’ve seen a little bit on the
channel but that’ll be more easily communicated in photographic form and
will be of course writing some blog articles and will keep you up to date on
current events that we don’t need to dedicate a whole video for so the way
you can keep in touch with us is also on Facebook so facebook.com forward slash
air B&B automated with of an Instagram account which is Airbnb automated and
then we’re filming and producing a series of courses under the brand
million-dollar renter because as you all know I don’t buy my property my
multi-million dollar Airbnb business consists of all rentals rental arbitrage
so if you want to talk to me one on one you can schedule call with me clarity FM
ford slash venom and we can solve your problems little over a hundred hosts
have currently had spoken to me through this website clarity Dafa dot FM forward
slash venom and we talked about their very specific issues one on one i do
provide coaching help you solve some of your bigger problems as an Airbnb host
and I’ll even share some of my secrets that I don’t give you on this YouTube
channel so once again thank you for watching Airbnb automated and I will see
you on the other side

22 Comments

  • Ryan Castillo

    good stuff Sean, thanks for the manageable videos.. poco a poco, step by step I´m becoming better and better at hosting 😉 You and another big Airbnb Youtuber raised me, I´m a Superhost now thinking about getting a second property 😉

  • Vicomte de Valmont

    I used a dynamic pricing service for my 13 house/units. They are spread out so don't have enough cleaning to have my own crew. As a one person show, I just don't want to spend time time playing with prices all the time. I am running an A/B/C split test on Sean's pricing strategy vs Wheelhouse vs. Beyond Pricing. I will post the results when completed. I don't do rental arbitrage or have mortgages so I don't have month payment pressures, ergo I often I use orphan days for maintenance and don't care if they book or not. I have also found that last minute same day booking guests are much messier/problematic than guests who book well in advance.

  • A Baker76

    Did he say the course is coming!?!??…Any one else hear that….Stop playing with my emotions man, lol…great stuff as always!

  • René Theil

    Sean … Love these strategies … BUT … How do you do these changes operationally / physically with multiple units? Do you do this Manually every day? Do you have software that does this automatically for you?

  • Andrew Vassil

    Sean…good stuff man! I filed for my LLC this past week. Pumped to get started. When will the course come out?

  • Nazar Zazulyak

    Hi Sean, thank you much for sharing so valuable information. In one of you videos you mentioned that Airbnb gives boost for new listings, for how long do they give that boost 1month?

  • T H.

    shouldn't 0% occupancy = 100% price? IF you are 100% occupied, that in plain English means you have no more available booking dates open

  • T H.

    I’ve documented about 10-12 pages worth of actionable notes from just your channel alone this month. Thanks for not being like everyone else.

  • Tobi Rosario

    Have you ever considered since your at a level now where you can just purchase some properties cash and like 2-34 units and airbnb the properties?Just curious

  • Deniz Adagoren

    Hi Sean, I have a question! Are you paid by Airbnb to make this videos of such high value? Whats your interest in creating this value for us?

  • Jordan Jones

    I charge 354% more percent then Airbnb recommends. Seems to be working and I plan on increasing price soon.

  • Tommy Quach

    What should your conversion % be? I’m getting 800+ views the last 30 days but converting at 0.5%. I have a good listing but could be maximizing more.

  • Josh Bedo

    @Airbnb Automated could you run Facebook Ads or Google Ads for airbnb bookings? I was thining target people with travel packages

Leave a Reply

Your email address will not be published. Required fields are marked *