Conrad Hilton (founder of the Hilton’s hotels) was saying once: “You need three things for a successful business – location, location, location”. And it seems that what applied 70-80 years ago to hotels applies now to Airbnb…
There are of course many more factors an Airbnb you need to consider as a host to maximize and increase your income. However by paying a little attention to getting pricing right you can achieve a lot more from your Airbnb host experience – or you can leave it to the experts. (You know who I am talking about right? Hum hum).
Here are just a few pointers:
Like a hotel, your location is one of the biggest determinants of your pricing. And as a host, you must be realistic about your expectations. It’s obvious that a flat overlooking Harrods will achieve more than a similar flat in Greenwich. However location can mean different things to different travellers. If you are located right outside Greenwich O2 Arena and there happens to be a U2 concert that week-end, you could be charging a significantly higher rate than on an average week end. [Check out: events in London]
Our clients are attracted to our services because we maximize their pricing and therefore income while giving them the flexibility to have access to their flat when needed. The summer period is a classical example where London is bustling with tourists and hotels are running full, when you could be putting your home up on Airbnb and potentially making as a all year rent in just 90 days.
What your previous guests thought about you is what your future guests think you will be. It is vital to ensure your guest have a memorable stay so your future guests have certainty that they will enjoy your flat. At Hostmaker, we enhance your guest’s experience by quickly responding to guests, hiring our own dedicated housekeeping team and a team of friendly Londoners to welcome guests.
There is a sweet spot with receiving the best bookings. On average, the best booking prices are achieved on reservations made between 30 and 40 days before arrival. Knowing this sweet spot gives you adequate time to maximize income while giving the flexibility to adjust pricing to reflect demand in case there are gaps in the calendar.
It’s a myth that guests are comparing hotel prices to Airbnb homes, and choosing based on price alone. Unlike staying in a hotel, guests have the option to book the size that best fits their needs and do not have to stay in separate hotel rooms. This makes a 2 bedroom flat with a sofa bed (that sleeps 6 people) more attractive than 3 different rooms in a hotel. Of course there are several other variables like the unique character of the flat or the reason for the stay.
Even if you are not a fan of Rugby, you might be if you are hosting during the Rugby World Cup. With Twickenham and Wembley hosting 75% of the London matches it is not surprising there is a noticeable trend in West and North West London where hosts are getting higher price than average, especially in comparison to hosts in other parts of London. This is inspite of September and October being considered off peak season. These price increases also occur with other events such as the Chelsea flower show.
These are of course several other tips that would affect pricing of your Airbnb home, if you want to know more just give us a call.