EP052: Paula Pant, CEO at AffordAnything.com, Shares her Experience with Airbnb in Atlanta

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Published: January 15, 2015
Pricing & Profitability

Summary

This article discusses revenue management strategies for short-term rentals, highlighting the complexities compared to hotels. It emphasizes the importance of daily and weekly pricing routines, understanding booking signals, and the impact of operational constraints. Hosts should focus on regular pricing reviews, analyzing booking behavior, and adjusting strategies based on demand and operational factors.

Key Insights

  • Small daily price changes can increase exposure on OTAs.
  • Booking windows, guest behavior, and operational realities create a completely different pricing landscape than hotels.
  • STR pricing is dramatically harder than hotel pricing due to product uniqueness (every listing is its own mini-hotel) and more volatile demand.

Action Items

  • Schedule revenue management, don't just react to events.
    Effort: low
    Impact: medium
  • Review every booking to reveal pricing and demand signals.
    Effort: low
    Impact: medium
  • Pay special attention to weekends, which require different attention than weekdays.
    Effort: low
    Impact: medium

Tools & Resources

  • Freewyld Foundry: Get a Free Revenue Review from Freewyld Foundry.(https://www.freewyldfoundry.com/report)
  • Freewyld Foundry: Learn more about Freewyld Foundry(https://www.freewyldfoundry.com)

Common Mistakes

  • Most hosts underperform not because they lack tools, but because they don’t know what to look at, when to look at it, or how to interpret booking behavior.

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