3 Airbnb Revenue Management Mistakes to Avoid in 2025 (Ep 633)
Summary
This podcast discusses three revenue management mistakes to avoid in 2025: being uncompetitive in the low season and pricing too low during the high season. The episode also emphasizes the importance of maintaining occupancy during the low season. Hosts should adjust their pricing strategies based on market data to maximize revenue.
Key Insights
- •Pricing too low in the high season results in the listings filling up too quickly, potentially leaving money on the table. The example of a portfolio in Washington State mentioned how they booked up in advance, but they could have made more revenue had they paced according to market.
- •In January 2025, a portfolio in Wisconsin saw a significant revenue increase from implementing competitive pricing during the low season. The top-performing four units saw their revenue increase to between $5,000 and $8,000, which is a 325% increase compared to the previous year.
- •The low season bookings can provide indirect value. It can lead to repeat bookings and improved visibility in Airbnb search results. It helps maintain the listing's ranking in search results. It also helps cleaners maintain income.
Action Items
- ✓Hosts should set a goal for each unit and understand what a good result looks like in their market during the low season by looking at market averages, the top 20% of the market, and their own performance from last year to determine good results.Effort: mediumImpact: medium
- ✓Hosts should consider using seasonal pricing or account overrides to adjust prices appropriately during both low and high seasons.Effort: lowImpact: medium
Tools & Resources
- →PriceLabs: The podcast mentions the "leaderboard" report in PriceLabs under portfolio analytics.
Watch Out For
- ⚠Avoid being uncompetitive with pricing during the low season, as there is not enough last-minute demand to fill units. Avoid pricing too low in the high season.
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