It’s no secret the past few years have been tough on Airbnb investors. While the company has revolutionised the travel industry, profitability has been elusive for investors, given the worldwide lockdowns. Thankfully, it seems like the world is moving forwards, people are travelling again, and investors can start focusing on more growth opportunities to maximise their Airbnb profitability.
Any business owner will tell you that to maximise growth, you need to have a well-defined strategy for how you price, market, and sell your offerings. The same applies if you want to grow your Airbnb revenue and rental income. You must take a holistic approach, evaluating everything from your pricing strategy to your guest experience.
By developing a clear Airbnb revenue management strategy, you can ensure your business is on the path to sustainable growth.
So, here are a few tips to keep in mind when developing your profitability strategy.
Establish a Pricing Strategy That Makes Your Airbnb Profitable
When pricing your Airbnb rental, there is no one-size-fits-all approach. The amount you charge will depend on various factors, such as the location of your property, the amenities you offer, and the time of year. Like traditional renting, you’ll also need to strike a balance between competitively pricing your property and ensuring that it yields a profit. Luckily, a few tried-and-tested pricing strategies can help you achieve this.
First, it’s essential to do your research and find out the rental income earned by similar properties in your area. This will give you a good starting point for setting your average nightly rate. Second, don’t be afraid to experiment with different pricing tiers to see what works best for your property.
You may find a dynamic pricing strategy works, which involves adjusting your Airbnb listing prices according to demand (this is certainly what GrowHOST delivers for all our property owners). This can be a great way to maximise occupancy during busy periods.
Another option is to offer discounts for more extended stays, which can encourage guests to book for a longer duration. This is a strategy we typically adopt to try and ‘build some base’ and attract some bookings well in advance of arrival dates.
Then, once we have some bookings in place and as we move inside four to six weeks prior to arrival period, we begin testing the market and pushing rates a little harder to maximise the yield.
Whatever strategies you choose, remember to monitor your occupancy and adjust your prices in line with your own and the markets’ demand patterns. With a little trial and error, you’ll be able to find a pricing strategy that helps you maximise your chances of becoming an Airbnb Superhost.
Focus on Creating a Unique Experience for Your Airbnb Guests
In a world where people are increasingly looking for unique experiences, creating a memorable stay for your Airbnb guests can be a great way to boost your business. For example, following an Airbnb checklist will help you get started on the right foot.
Additionally, think about what makes your rental property unique and how you can highlight that in your listing. Are you located in a particularly scenic area? Do you have unique decor or furnishings? Are you close to particular features or local amenities? Know what sets your rental apart and ensure potential guests know about it.
Airbnb Hosts Should Think Like a Hotel General Manager
As a short-term rental property owner, it’s essential to constantly think about how you can improve your guests’ experience. After all, happy guests are more likely to leave positive reviews and come back for future stays.
One way to boost your earnings is to think like a hotel. What can you do to make your guests feel like they’re staying in a luxury hotel instead of just a regular old Airbnb rental? Hotels are known for providing high-quality service, and there are a few key ways you can emulate this in your own vacation rental.
One thing hotels do very well is provide amenities. So, take a look at the supplies you provide in your Airbnb and ensure you’re offering everything your guests might need or want. Providing little extras like fluffy pillows, towels, toiletries, and other essentials can make a big difference in guest satisfaction.
Another key way they make money is by upselling guests on higher-priced rooms and services. You can do the same by offering add-ons like early check-in or late checkout. You can also upsell guests on your other properties if you have more than one listing.
By adopting some hotel management strategies and making a few simple changes, you can become a Superhost, potentially attracting more guests and ensuring they have a pleasant stay, making your Airbnb profitable.
Market Your Airbnb Rental in Both Peak Seasons and
Off Seasons to Maximise Profitability
Many vacation rental hosts only consider prioritising their marketing strategy during peak seasons, when demand is high, and they can charge a premium for their investment property. Limiting your strategy can actually lead to missed opportunities for maximising Airbnb profits.
By advertising your short-term rentals during the off-season, you can attract a different kind of traveller looking for a bargain. This can help to fill up your calendar and boost your rental income. Of course, you will need to adjust your pricing accordingly, but even a small discount can entice budget-conscious travellers.
And with more bookings come more reviews and word-of-mouth referrals, helping to boost business even during the slowest periods.
Consider Utilising the Services of an Airbnb Property Management Company
If you’re an Airbnb host running a vacation rental business, you know how much work it can be. Between managing reservations, coordinating cleaning and maintenance, and dealing with guest issues, keeping track of everything can be difficult. And that’s not even including the work that goes into actually running your Airbnb rental property!
One way to take some of the burdens off your plate is to hire an Airbnb property management company. Vacation rental property managers (like us) specialise in helping hosts run their businesses more efficiently and effectively by handling day-to-day tasks like managing reservations, guest communication, and cleaning coordination.
They not only take a load off; they are professionals with years of experience. A good Airbnb management company will also help grow your business and maximise profitability, often achieving better results than you can achieve on your own!
They’ll have systems and processes in place to help streamline operations, and they’ll be able to offer valuable insights and advice regarding marketing, pricing, and income forecasting.
Of course, finding a reputable and reliable property management company is essential. If you’re worried about whether a property manager is worth it, if you take the time to do your research, you should be able to find one that’s a good fit for your needs. And, as always, we’re here to provide that solution for you!
Often, the lift in performance you receive is enough to offset the cost of engagement, making it a cash flow neutral, or even cash flow positive, exercise.
Where We Come In
GrowHOST was formed to bring professional hotel industry expertise to the Airbnb sector. Our team has years of experience managing and developing hotel properties, and we understand the importance of maximising returns on investment.
We also understand that, when it comes to investing in Airbnb properties, there is a lot to consider. Many factors can impact your success, from location and amenities to furnishing and marketing. That’s why we offer a comprehensive suite of services designed to help you, as a host, make the most of your investment in the short-term rental market.
From creating your listing and marketing your property to managing your daily operations, providing a tailored revenue performance forecast, and everything in between, we’ve got you covered. So, whether you’re a new host or looking to make your current Airbnb profitable, GrowHOST can help you achieve your goals.
Contact us today to learn more about how we can help you boost your investment property revenue and maximise profitability.