How to get fewer bookings but at a higher rate?

[Jane344]

We own a waterfront cottage that we have been very successful at renting out - almost too successful.  We are finding that with the demand, there isn't much time left available for us, friends and family.  I'd like to be able to make the same amount of money but with fewer bookings.  I have a number of five star reviews so feel that our listing can tolerate a price increase but don't want to price us out of the market.  We currently are priced at $150 per night with an additional $25/person/night with a maximum of four people so $200 per night is the maximum amount we can currently make. I'm considering going to $175 per night with $35 per additional person/night which equates to a 22% increase and a base price of $225 on Friday and Saturday nights.  I realize that it also comes down to the competition in the market but given that we're basically sold out I don't think it's such an issue.  

Any suggestions for going about changing the pricing?  Does changing my setting under "how often do you want to host?" from "as often as possible" to "part-time" make a difference?  What percentage increase have you found to work?  Is 22% too drastic?  Would really value others' tips.  Thanks!

[Suzanne302]

@Jane344 

If you're almost always booked the beauty of ABB is that you can then experiement and see what happens!

I rent a room in my home, so my situation is a little different but I too, found I was getting booked constantly and I actually had to block days on my calendar to get a break. Here's what I do (keep in mind my rate is way lower because it's just a room!):

My base rate is $40/night. With each booking I get in a month, I increase the price. All the way up to $65/night. So, for example, if April is completely available, all days are $40/night. Once I get a reservation, I bump all the other nights in April up by $5/night. Once I get a second April reservation, all the rest of the days go up again. The closer to the date, the higher I bump up the rate as well.

So I still get plenty of bookings, but also get plenty of unbooked days, and I make about the same I would if all days were booked. It's worked really well for me!

Happy hosting!

[Huma0]

@Jane344I do something similar to @Suzanne302 

I do something similar. As more bookings come in for any particular month, I start bumping up the prices, although I don't usually start after just one booking unless it is a longish one. I will consider raising the prices earlier from now on.

I also have a monthly target, which is the minimum amount I want to achieve each month and, once I have achieved that, I bump up all remaining nights and am fine if some of them don't get booked because I don't need them to be unless I am getting a good rate for them.

I have also gradually raised my base prices since I started hosting, but not by too much as I don't want this to affect my position in search results.

One thing that has complicated this though is that I am trying to attract more long-term guesfs so I don't want to price them out. I do have a long-term discount though and could try raising the nightly price AND the discount so it's still affordable for them but I would have to figure out the maths. What I do though is as soon as I have another long-term booking, I bump up the prices between that and the other long-term ones, e.g. the dates that are left available for short-termers.

[Jane344]

Thanks!  That is a really great suggestion.   

[Ellen104]

Too many bookings mean your price is too low.  Raise it.

[Jessica-and-Henry0]

@Jane344 

My approach is similar to @Suzanne302  but I host a lot of long term guests so I tend to look at the entire year rather than month by month. Once we get a confirmed booking, we always make sure to block a certain no. of days surounding that booking to give ourselves a break since we host out of our home.

I also think it's important for hosts to understand the prices within your market, what people pay to stay at hotels vs. what other comparable ABB listings are charging and also what kind of budget do people travelling to your area have in mind. If your listing is above average in terms of location, amenities, etc. compared to your competition then you should make sure your rates are also above average rather than below. My experience is, savvy people who know a good deal when they see one will be willing to pay a little bit more if they feel it will be worth it. 

Good luck~

[Jane344]

Thanks for your input.  There are no hotels in my area and from what I can tell, our airbnb is much nicer than what else is available.  So I will go ahead and raise my prices.  

[Linda108]

@Jane344   Of course price is the number one factor, but if you are looking to have better access to your listing for personal use, consider raising minimum night stays for high demand times.  That will attract a different group of guests and will like reduce the maintainence costs thus increasing the net.

[Jane344]

Good suggestion.  Most of my bookings are for longer periods but there are a few for my two night minimum.  Thanks for your input.  I will do consider raising the minimum number of nights.   

[Lisa723]

@Jane344 @Huma0 @Linda108 @Jessica-and-Henry0 @Ellen104 

You could also consider pricing software such as usewheelhouse.com... I've been extremely happy with it and I've heard the same from other hosts.

You can get a $10 credit via this link:

https://www.usewheelhouse.com/u/account/register?referrer_id=e05oV

[Rebecca181]

@Jane344 I have a beach rental and was booked solid constantly since the day I opened. I learned pretty quickly if I wanted / needed a break I would have to block it off on my calendar. In addition to raising my prices throughout the month as the month fills up (as mentioned by other hosts, above) I also did charge an extra guest fee - low season I charged 15.00 per extra guest over two guests; high season I charged 35.00 per extra guest (more guests meant more beds to make up and more bathrooms to clean - we do the cleaning ourselves - and none of our guests had a problem understanding why we were charging additional fees). Worked out great and I recommend you try something similar (depending on how many guests you prefer to have nightly) and see if this works for you as well.