Why Dynamic Pricing Should Be Your #1 Priority as an Airbnb Host (Episode 359)

How to Use PriceLabs Dynamic Pricing Software to Earn More STR Revenue

Welcome back to the officially unofficial Money Making May, where we have a full month’s worth of content all around pricing profitable properties with PriceLabs!

Today’s expert guest is our very own Chief Operating Officer, Colleen Prochaska! Colleen brings over ten years of hospitality experience as a hotel General Manager for Marriott and Hilton brands to Thanks for Visiting. Her passion lies in supporting guests’ experiences and mentoring associates throughout her career. Her philosophy entails equipping the team with tools, providing clear communication, and ensuring success for all.

She’s here today to walk us through a lightning-fast masterclass on revenue management for short-term rentals – highlighting the mind blowing features and money-making capability of our dynamic pricing partner, PriceLabs, along the way.

A common issue among hosts who set static prices or rely on Airbnb’s smart pricing is that it often leads to suboptimal revenue. PriceLabs helps you make more money than you would without it. It’s a rare piece of operational  software that brings with it an immediate ROI – the holy grail of any business investment, especially when you’re operating on a tight budget or just starting out. PriceLabs is a third-party dynamic pricing software, which means that pricing doesn’t have an agenda like making Airbnb money. Instead, PriceLabs’ results are based on data that serves you, the host.

Here’s the best part: hosts don’t need to manage pricing daily; instead, they can rely on dynamic pricing software’s data aggregation and adjustments. We recommend weekly check-ins to review occupancy and pricing, using PriceLabs’ stoplight-style dashboard to identify issues. If occupancy is low, check market data, adjust booking requirements, or run promotions directly on the OTAs like Airbnb. For monthly reviews, analyze revenue performance against historical data and market averages, and set realistic goals. Focus on high-demand periods to maximize revenue, rather than lowering rates during slow seasons.

Come for the money-making tips, but stay as Sarah and Colleen air out some dirty laundry on a big mistake we made in Q1 of this year. We are, if nothing else, open and honest in our mission to make you more money on your STR journey!

Dynamic Pricing and Your Airbnb: Key Takeaways

  • The Importance of Dynamic Pricing: Dynamic pricing can significantly increase revenue for Airbnb hosts by adjusting prices based on market demand.
  • Using Software Tools: We recommend a tool like PriceLabs to automate pricing adjustments, which saves time and optimizes rates daily.
  • Revenue Management Strategies: Adjusting minimum stay requirements and running promotions during low booking periods to boost occupancy are just a couple practical tips to employ.
  • Monitoring Market Data: Regularly checking market data and adjusting pricing strategies accordingly is crucial to staying competitive and maximizing your short-term rental’s income.

Dynamic Pricing in Your Vacation Rental Property: Episode Timestamps

(00:01:21) #STRShareSunday: @trimbellecottage

  • Leaning into the trout fishing aspect of their location 
  • Learn to live outside the spreadsheet

(00:03:15) Colleen’s Revenue Management Tips via PriceLabs

  • Daily, weekly, monthly – What’s most important?
  • Reading the PriceLabs occupancy dashboard 
  • What day of the week should you log in?
  • Taking effective action on upcoming occupancy gaps
  • Promotional discount vs. reducing minimum stay
  • How to leverage gap nights through existing bookings 
  • Discounted booking > empty property  

(00:20:00) Bigger Picture: Monthly & Annual Pricing Adjustments 

  • Checking both historical and market comps 
  • Collen’s quick masterclass on STR revenue management 
  • What’s market share and why is it important?
  • Reacting to a less-than-full market share
  • Prioritize revenue during your high seasons

(00:27:05) Practical Example of STR Revenue Management Concepts

  • Why and how to make up for missed goals in slow season
  • Occupancy vs. revenue breakdown 
  • Check out PriceLabs: Start your 30-day free trial
  • Estimated one-hour onboarding process 
  • Instagram LIVE with PriceLabs
  • Recommended initial account set-up steps 
  • Get ready to make a mistake and let it go 

(00:33:12) We Made This STR Pricing Mistake So You Don’t Have To

  • Why we lowered rates in our slow season 
  • Taking a 15% haircut on January vs. 2023
  • Quick checklist to avoid this mistake

Download a transcript of this episode.

Resources:

#STRShareSunday

@trimbellecottage

This week’s #STRShareSunday spotlight shines in Wisconsin on Trimbelle Cottage. This cozy home is secluded on a charming property located along the river (boasting prime trout spots). The hosts, Luke and Kendra, are new to Airbnb but truly knocked it out of the park with photos and styling to get the listing started. They have it set up for memorable outdoor adventurers, to comfortably host large groups, and to promote rest and relaxation – who doesn’t love a hot tub soak?

We would love to feature YOU, so don’t forget to use #STRShareSunday to get your chance!

Together, Annette & Sarah are the dynamic duo behind the wildly popular podcast Thanks For Visiting, co-creators of the Hosting Business Mastery Method, & seasoned short-term-rental hosts.

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