Do I Need PMS?

Question

I've got a single Airbnb (with no plans for another) that we have listed only on AirBnB. We had a second but sold it last spring. When I had both, we were using separate cleaners to coordinate and I needed some type of pricing tool to do dynamic pricing. It was 2021 when I set everything up, and I doubt that I did it in the most logical way, but it did work. Now that we only have the 1, my wife takes care of the cleaning and I do the maintenance. We don't have any 3rd party vendors for anything.
I'm currently using Guesty and Pricelabs. I keep getting messages from Guesty that it is no longer going to be available, and I'll have to switch to Guesty Lite.

My question is, do I really need PMS at all or can I do everything through the AirBnB platform?  I'm not currently using the PMS for anything other than to run the pricing software through it.  I don't use any of the other features such as smart locks, messaging, and don't have multiple booking channels.  The ~$40 a month for the 2 platforms isn't breaking us, but if it could be streamlined and all run off of AirBnB that'd save a little money and probably simplify things.  My only concern with using the built in pricing would be that AirBnB is incentivized to book at a lower price than external software would be.  Is this a valid concern or is their pricing tool pretty solid?

Thanks in advance for any help!

Andrew Steffens · Answer

I started in STR's in 2016, when there were no software really to speak of, but I began scaling in 2019 when there were.  I'm now currently around 60 and do have all the software, but I made a conscious decision to not implement anything until I hit 10.  I ran the entire operation off of Airbnb app, VRBO, and google spreadsheets.  I do not think it is necessary for you to have any software for just 1 unit.

Justin Knighten · Answer

I'm far from tech-savvy, I think when I set it up, I needed to run it through a PMS to make it work, however, that may have been a function of having 2 properties instead of 1.

Thanks for the help/suggestions so far!

Michael Calvey · Answer

To answer your question regarding the pricing tools: Yes, your concern is absolutely valid.

Airbnb’s native "Smart Pricing" algorithm is incentivized to maximize occupancy (which maximizes their service fees), not necessarily your profit. They will almost always price you lower than you should be. I would definitely recommend you keep PriceLabs. It pays for itself by capturing those revenue spikes that Airbnb’s tool usually misses. You can likely connect PriceLabs directly to Airbnb and drop Guesty if you aren't using the other PMS features (messaging, smart locks, etc.).

Since you mentioned wanting to simplify things and save money, I’d also highly recommend looking into Baselane for your banking. Since you and your wife are handling the management and maintenance yourselves, Baselane is a game changer for keeping your books organized. It automates your expense categorization and P&L, which makes tax time way less of a headache than using a standard bank account or spreadsheets. Plus Baselane is free and if you are a BP Pro member, you'll get $100 sign up bonus!

Hope that helps streamline things for you!

Andrew Street · Answer

With one listing and no vendors or multi-channel needs, you really don’t need a PMS. Airbnb can handle everything you’re doing now.

Mike Grudzien · Answer

Justin,You've been in the game for several years.You had a couple of properties.Then you ask: "My question is, do I really need PMS at all or can I do everything through the AirBnB platform?"That's really, really, a question for you to answer yourself......

Lauren Kormylo · Answer

I don't understand why you're paying for Guesty but not using it for anything.  You say you're just running the pricing software through it, but you don't need it to run PriceLabs, that can connect directly with Airbnb.  I would keep PriceLabs, I trust them more on pricing than Airbnb, as you have said.  I have one STR, and don't use a PMS.  I just have PriceLabs, and list on Airbnb, Vrbo, and Houfy.

Justin Knighten · Answer

Maybe I should have said "I think I can do everything through the AirBnB platform.  Is there something that I'm missing that will make life more difficult?"

Also, is the pricing tool in AirBnB garbage or does it work alright?

Josh Ball · Answer

I'd be cancelling PMS at the minimum. I'd likely get rid of Pricelabs also & see about just using AirBNB "smart pricing" & some basic research with comps.

John Underwood · Answer

I fully agree with Andrew.

Just use the built in tools Vrbo and Airbnb provide for now.

Do I Need PMS?

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