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The Two Pricing Strategies You Need to Know for Your Airbnb

If you're going to be an Airbnb host, you need to understand the basics of pricing. It's important to get the price right on your listing so that you can make money off of this sharing economy. Be careful when setting your price, and take the time to understand the market and what guests are willing to pay.

There are two main ways to set prices for your Airbnb listing–cost and profit and comparables. Cost is how much it costs you to provide the listing, including things like rent, utilities, and cleaning fees. Profit is how much money you want to make from the listing.

Comparables are other listings in your area that are similar to yours in terms of size, amenities, and location. You can use comparables to see what prices are being charged for similar listings and use that information to set your own prices.

Understanding Airbnb’s Pricing Strategy

Airbnb's pricing recommendation generator takes some details about your property and compares it to similar properties in your area to come up with a suggested price. You can then use this suggested price as a starting point for pricing your listing.

For rookie Airbnb hosts who don't have a lot of profile fluff, it's suggested that they go below the recommended rate to start getting regular reservations. However, you shouldn't take a pricing recommendation at face value.

Regardless of their level of expertise, all Airbnb hosts should spend more time researching and comparing their pricing to similar listings in their city. With all the search parameters and subcategories that can be used to filter the results, this is a rather simple task.

Remember, pricing is flexible on Airbnb. You can always adjust your price up or down depending on demand and your goals. So, don't be afraid to experiment a little bit to find the perfect fee for your rental.

Strategy 1: Cost and Profit

In this situation, it would be best to only care about making a profit from your Airbnb rental. This is because if you are a host with monthly mortgage or rent payments, you must be able to keep up with those payments. Making a profit from your Airbnb rental can help you to do that.

Don't just focus on the present moment, but also think about the future when creating a budget. It's essential to account for both one-time and recurring expenses. Try to break your spending habits and learn to live within your means.

In addition, you should always be aware of the potential additional costs that come with renting a property. This can include utilities, taxes, or cleanings. You can avoid any potential financial losses by being aware of these costs in advance.

You may have also noticed that you've been spending more time than usual preparing your Airbnb for visitors. Perhaps it's taking longer to update your listing calendar or you're spending more time ensuring everything is in order. Either way, this takes time away from other potential work or projects. As time is money, you may want to consider increasing your prices to compensate for the time you're spending on Airbnb.

Strategy 2: Comparables

You don't want to be too high and priced out of the market, but you also don't want to be too low and appear to be providing a sub-par product. Use data and analytics to help you understand where to price your rental to be competitive.

If you want to find something specific in your city, it can be helpful to use the search function on Google and include as many details as possible and any relevant subcategories. This will help to narrow down the results and make them more relevant to what you're looking for. Research how much other similar listings in your area charge per night, then use that information to price your listing competitively.

To make your listing stand out from the competition, consider creating weekly or monthly bundles and adjusting your prices to attract longer rentals. Any reservation for 7 to 27 nights would be charged a weekly rate, while reservations for 28 nights or more would be charged a monthly rate. You could also think about having an open-door policy for special offer discussions, accessible on a guest-by-guest basis.


There are a few key things to remember when pricing your Airbnb rental. First, be sure to account for all your costs, including insurance, taxes, and utilities. Second, be aware of the local market rates for similar properties. Third, consider what amenities and features you offer and price accordingly.

Finally, don't be afraid to adjust your prices as needed based on feedback from guests and changes in the market. By following these tips, you can ensure that you are pricing your Airbnb rental correctly and maximizing your earnings.

To learn more about Airbnb pricing and maximizing your property’s earnings, turn to We help you run your Airbnb like an expert without needing to be one. Join us for our next training and learn how we've helped hosts increase their earnings by up to 389 percent.

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