Airbnb’s New Pricing Tool Makes It Easier for Owners to Set Prices
Airbnb is a great way to find cheap accommodations if you’re traveling, or make some money if you’re a property owner. If you fall into the latter category, the company has just released a tool that will make it easier for you to earn more from renting out.
The tool, dubbed Price Hints , tells owners how much they can charge based on room demand, local events and hotel rental prices. Airbnb explains:
You can see daily price tips that take advantage of what the model knows about the likelihood of your seat being booked every available night. When you see a hint, the model gives you an idea of whether you can make more money while maintaining the likelihood of booking, or if you can increase the likelihood of booking by lowering the price.
This is good news for landlords, but not entirely bad news for tenants. This tool may inspire some owners to lower their prices by freeing up more rooms. Airbnb says that hosts are four times more likely to book a room if they choose a price within 5% of their tip, compared to hosts who charge more than 5% less than their tip. Their VP of Development told TechCrunch :
In many cases, it is someone who dials the number and hopes for the best. This is one of the biggest challenges in the startup process, and worse than knowing what to value means understanding how that price should change over time.
To learn more about this tool, follow the link below.