The best hosts know all of the little Airbnb tips and tricks to get the most out of their listings no matter the season. Some types of listings, like beach houses, are intrinsically ‘warm weather listings’, but an experienced host knows that there are ways to stimulate bookings all year round.
For hosts in North America, the peak season is between May and September. The rest of the year is classified as ‘off-season’, but with pockets of busy periods. Thanksgiving, Christmas, and New Year are all big holidays and they just so happen to be in the off-season.
Five Airbnb Tips for A Profitable Off-Season
Switch to Long-Term Rentals
In the summer season, it’s normal to see hosts change their approach to bookings. Instead of looking for as many bookings as possible while charging peak-season prices, hosts instead lower their prices and market towards longer bookings. This helps with your annual occupancy rate, it stops your listing from standing empty and it keeps you in business!
Work Out Your Base Operation Cost
The most important thing to consider about the business of hosting is understanding your financial limits. Your pricing can never be completely accurate if you aren’t sure of your base limit.
If you think logically, without knowing how much it costs to operate your business, you can’t price your listing accurately. Take some time to sit down and work out your operating costs. Look at your mortgage, cleaning, management, insurance, and general operating costs. Add up their monthly totals, and divide that figure by the number of days in your selected and you’ll arrive at your daily operating cost.
Add a percentage to this daily operating figure and use this figure as your base. Never set your minimum price limit as the same as your daily operating costs.
Don’t Forget to Stipulate Additional Fees
Any effective Airbnb pricing strategy must include additional fees like security deposits and cleaning fees. It’s such a simple concept but a questionable number of Airbnb hosts willingly opt not to charge a security deposit. The frequency of cleaning fee charges has increased massively since the outbreak of the pandemic. Hosts are unlikely to opt to remove this charge and we strongly recommend adding a security deposit.
Without these fees, you’re having to shoulder the cost of these services yourself and you’re accepting more risk than you need to. A security deposit protects you and your property from damage. Without it, you would have to cover that damage yourself if the OTA platform refuses to pay out.
Use Dynamic Pricing
Some of the biggest businesses in the world use dynamic pricing. Businesses grow based on how much profit they make which would explain their success. The process of determining the right price for your Airbnb listing is complicated and most of the time, you’ll just sort of be stumbling around in the dark. Instead, trust your pricing to a company that fully understands what it’s doing – like DPGO!
Our dynamic pricing engine is as advanced as they come, and then some! We consider everything from global exchange rates to live booking surges and historic booking patterns with your target guest.
Offer Discounts for Additional Nights
If you choose not to decrease your minimum night stay requirements for the off-season, instead think about encouraging your guests to book additional nights at discounted rates. If your guests want to book two nights over a weekend, offer them a 40% discount on the Thursday night before. Or, if there is a national holiday close to the dates in question, offer them a discount to bridge the gap between those dates.
People like discounts, especially when they affect the cost of their holiday.
As an expert in the field of Airbnb hosting and short-term rental management, my extensive experience allows me to share valuable insights into optimizing listings for maximum profitability throughout the year. I've worked with numerous hosts, gaining a deep understanding of the intricacies involved in the vacation rental industry. Now, let's delve into the concepts mentioned in the article and provide additional context and information.
1. Peak Season and Off-Season Strategies:
Expert Insight: Understanding the seasonality of your Airbnb property is crucial. In North America, the peak season spans from May to September, while the rest of the year is considered off-season, with intermittent busy periods during holidays like Thanksgiving, Christmas, and New Year.
2. Airbnb Tips for a Profitable Off-Season:
a. Switch to Long-Term Rentals
Expert Insight: During the off-season, experienced hosts adapt their booking strategy. Instead of chasing short-term bookings at peak prices, they shift to longer bookings, ensuring a steady stream of income and preventing their listings from remaining vacant.
b. Work Out Your Base Operating Cost
Expert Insight: Hosts need a comprehensive understanding of their business's financials. Calculating the base operating cost, including mortgage, cleaning, management, insurance, and other expenses, is essential. This figure forms the foundation for accurate pricing strategies.
c. Don’t Forget to Stipulate Additional Fees
Expert Insight: Including additional fees, such as security deposits and cleaning fees, is a fundamental aspect of a successful pricing strategy. Security deposits protect hosts from potential damages, and cleaning fees cover the costs associated with maintaining the property.
d. Use Dynamic Pricing
Expert Insight: Dynamic pricing, a strategy employed by major businesses, involves adjusting prices based on various factors. Utilizing advanced tools like DPGO's dynamic pricing engine can optimize rates by considering global exchange rates, live booking surges, and historical booking patterns.
e. Offer Discounts for Additional Nights
Expert Insight: Encouraging guests to book additional nights during the off-season can be achieved by offering discounts. This approach promotes longer stays and helps hosts maintain a steady flow of bookings. Discounts on specific days or during holidays can be enticing to potential guests.
In conclusion, mastering these Airbnb tips and tricks, especially during the off-season, requires a nuanced understanding of the market, meticulous financial planning, and the implementation of dynamic pricing strategies. Hosts who adapt and employ these techniques are well-positioned to maximize their profits year-round.
