Growing your Airbnb revenue takes much more than simply adding more listings to your account. As with any other business, you need a defined Airbnb revenue management strategy. According to SmartAsset, the average Airbnb host income is $20,619 per year for the 15 cities examined in their study. While this figure isn’t a small amount, it isn’t enough to live off of. This is why Airbnb hosts are always on the lookout for ways to increase their Airbnb revenue.
If you are already earning Airbnb host income and you want to learn how to increase your Airbnb revenue, check out these proven Airbnb revenue growth techniques.
1. Sell the Local Experience
There are very few guests on Airbnb that are truly only looking for a place to stay. In fact, the majority of guests are looking for accommodations that will allow them to take advantage of everything that the local destination has to offer. From easily accessible transportation options to leisure activities, the top-grossing Airbnb income property hosts really know how to sell the local experience.
In order to do this, you’ll need to craft a unique experience for your guests. Demonstrate that you have in-depth knowledge of the location where your property is located by creating and maintaining an up-to-date guidebook. You should also consider selling Experiences to increase the amount of revenue that you can earn from each listing. Finally, prove to your potential guests that you have the keys to your city by including beautiful photos with your listings.
2. Adopt a Thought-out Pricing Strategy
Here are some thoughts about the pricing that will help you create an effective strategy for attracting more reservations.
- Nothing turns off potential guests faster than a host that wants to nickel and dime them for everything. While you want to maximize your earnings from every booking, it pays to have a transparent pricing strategy. Study the pricing strategies of other top listings in your area so that you can see what attracts the most guests.
- Avoid making extra charges for items that most hosts simply include in the stay. Don’t charge unusually high amounts for common fees such as cleaning.
- Set a minimum number of nights stay for your listing. Change it depending on how far in advance guest makes a reservation.
- Use dynamic pricing to ensure that your listings are always competitive. Using iGMS software, you can also automate aspects of your pricing strategy such as last-minute discounts and optimize your minimum stay requirement to maximize your bookings.
Your pricing strategy not only impacts the revenue you earn but also your reviews and the types of guests your listings attract. A good transparent pricing strategy takes all of this into account, allowing you to maximize your bookings and grow your revenues at the same time.
3. Be In the Right Place, At the Right Time
If you want to grow your Airbnb revenue, you need to have a solid property acquisition strategy in place. It’s already a given that the more listings you have on Airbnb, the more you can earn. However, what separates the most successful hosts from the average hosts is that the successful hosts acquire properties in the right places, at the right times. As a result, you’ll need to research housing markets trends so that you are always adding new properties that have the highest potential Airbnb revenue.
The top-grossing Airbnb properties are often located in urban centers. In addition, you might also want to consider investing in properties that are located in cities that attract tourists. By buying properties in high-demand locations, you can ensure a steady stream of bookings and increased Airbnb revenue.
4. Promote Your Property
If you want to maximize your bookings so that you can increase your net Airbnb revenue, you need to promote your property with advertising. Use social media, relevant forums and websites to attract guests to your property that aren’t currently searching on Airbnb.
The top hosts don’t only rely on Airbnb for traffic to their listings, they make sure that their listings are visible across the web. That’s because you need also to draw in guests who have never used Airbnb before. By promoting your property across the web, you also won’t be totally dependent on your Airbnb ranking in order to get bookings, which will increase your Airbnb revenue.
5. Embrace Automation
Using automation tools to manage your Airbnb helps you to compete directly with the top hosts on Airbnb. From dynamic pricing to communication management, automation tools can help you manage all aspects of bookings on Airbnb.
While these tools often require a higher upfront investment, you will receive the pay off over time in increased Airbnb revenue. You’ll also be able to focus on growing your business 24/7 because you are no longer distracted by the day-to-day business management tasks that were previously being done manually.
6. Network
There’s really only so much you can do to squeeze the most out of your existing Airbnb assets. As a result, the top Airbnb hosts use networking as a part of their Airbnb revenue growth strategies.
By attending real estate, technology, and Airbnb focused events and reaching out to others in your industry via forums and blogs, you can potentially attract new investors and partners. You’ll also gain access to products and services that you might have otherwise never known about. By networking, you can leverage the experiences and successes of other Airbnb hosts in order to improve your vacation rental revenue management strategy.
7. Think Outside of Airbnb
As your success with Airbnb grows, you should also consider how you can leverage your Airbnb experience outside of Airbnb. Top Airbnb entrepreneurs have used their Airbnb experience to launch courses and podcasts to teach others about making money on Airbnb.
Other successful Airbnb hosts have also created their own Airbnb-related services such as Airbnb consultancies. Launching an Airbnb-related service also has the added bonus of boosting your Airbnb SEO ranking because people will research your Airbnb profile and the listings that resulted in your success.
The bottom line: directly promoting your listings isn’t the only way to grow your Airbnb revenue.
