Airbnb Lesson 8: Setting Your Airbnb Price, Part 2
After collecting and listing all possible monthly expense,
add them all up. Here’s an example:
Items
|
Amount
|
|
Monthly
amortization
|
Php 20,000
|
|
Association
Due
|
2,000
|
|
Insurance
|
800
|
|
Real
Property Tax
|
170
|
|
Utilities
|
||
Electricity
|
3,000
|
|
Water
|
500
|
|
Internet
|
1,300
|
|
Cable
|
500
|
|
Netflix
Subscription Fee
|
370
|
|
Laundry
|
150
|
|
Toiletries
(Tissue, Soap, Shampoo, etc)
|
50
|
|
Pantry
(Bottled Water, Coffee, Tea, Sugar, Oil, etc)
|
50
|
|
Grand Total
|
Php 28,890
|
|
Then, set a realistic occupancy rate based on your research,
about 60% to 70% or about 18 nights booked.
You can use AirDNA to have a better clue on the occupancy rate of your
place. Here’s a sample AirDNA report for
Tagaytay.
Divide your total expense with the number of nights booked. This will give you your base pricing per night. Using our example, base price per night is P1,605.
After knowing your base price per night, tweak the price to be higher, for weekends and holidays, and lower on weekdays. Also, don’t forget to look at the pricing of your neighbor. Compare your unit to theirs and see if you’re pricing yourself too low or too high.
Know the seasonality of your location. Price your unit higher on peak seasons, and during long weekends. These are the times when you can really profit from your venture.
Lowering your price will get you more bookings, but never to a point where you sell yourself too short. The aim is to profit not to just break-even.
Read Part 1, here.
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