if you are like me when I first started renting out my own property I was at a loss for knowledge and information on pricing. I didnt. have the foggiest idea of what price to start at, how high could I go, more importantly how low could I afford, what was the price sensitivity.
In the hotel world it is much easier to compare apples to apples. you price out the Hilton, then you can check Marriott and maybe a Sheraton or some other brand. All are somewhat familiar to you and all have pretty much the same product and service offering. But when it comes to airbnb the variations in pricing can swing dramatically and nothing to compare against. you have no clue what you are to expect.
At sentient hotel we have not only standardized a product and service that a guest can rely on in any city they travel to but they can also, use us as a price standard.
Moving on to those three things;
- Check for Events – when you have city wide events (for example Art Basel in Miami) there will be a huge surge in demand for hotels and short term leasing. this is an opportunity to provide more value while increasing your pricing – anywhere from 25%-100%.
- Shortage in Demand – periodically check number of available properties in your area. If you notice, high demand and a shortage of available properties, this is usually a good indicator that the market can handle a price increase
- Assess the Competition – try and find similar properties in design, size and location – this will be your comp set. Then on any given day or week, check what pricing they are selling and decide how you want to position your property – Price Drop – value for money or Price Increase – superior product and service.
If you have any questions at all, don’t hesitate to connect with Lucy who handles all of our customer relations inquiries.
Sentient Culture Team