Looking for competitive pricing advice

Member since 2022 · 23 posts · 25 votes

With new Airbnb pricing structure, how are people handling pricing? I use Pricelabs, but I’ve always been told to check regularly and still adjust pricing manually as needed. How do folks competitively price even with the software tools? And are you seeing a difference from last year to this year in booking lead up time? Is it significantly discrepant? Thanks for any advice!

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Mike GrudzienPro Member

Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes

6mo

Once a year, I go into Traveler mode on Airbnb, put in my zip code and some dates (not during a surge) and look at my competitors.

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Mike GrudzienPro Member
Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
6mo
Once a year, I go into Traveler mode on Airbnb, put in my zip code and some dates (not during a surge) and look at my competitors.
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- John UnderwoodPro Member
  Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
  6mo
  Quote from @Mike Grudzien:
  
  Once a year, I go into Traveler mode on Airbnb, put in my zip code and some dates (not during a surge) and look at my competitors.
  I 100% agree with this too!
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
6mo
I use the free automated price tool in Vrbo.
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John RacinePro Member
Rental Property Investor · Casselberry, FL · Member since 2008 · 93 posts · 54 votes
6mo
I use PriceLabs but reference that against my Comp Set and my Market Dashboard. I also look at my Pickup and my Penetration. After that, I look at my Booking Lead Time. This gives me a pretty good picture of where I stand down to a very specific point. I adjust up/down/other based on the data I see. I'll also look at traveler mode to gauge real time occupancy and pricing on my comp set. This gives me a bit more data. Sounds like a lot but it takes a few minutes a day and I am driving ADR and Occupancy so it is working.
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David Cherkowsky
Investor · Alexandria, VA · Member since 2023 · 92 posts · 52 votes
6mo
Our strategy has worked pretty well.

Every week we look at forward booking pace, which is mainly 30-day and 60-day occupancy.

If bookings are coming in faster than they should we raise the base price. If they’re slower than they should, we lower it.

The main benefit is this lets us price higher further out, especially 60+ days, and then adjust as we get closer to the market booking window.

If those higher-priced nights don’t book, we still have time to bring prices down. Because we’re monitoring booking pace weekly, we’re never stuck overpriced too close to stay dates.

We also track revenue compared to a similar comp set to check if we need to make adjustments to our strategy.

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Calvin Kwon
Member since 2019 · 15 posts · 3 votes
6mo
Property Management Systems like hospitable have dynamic pricing take takes into account the market daily rates and special events that might be happening. I personally use hospitable and it has been great. As another person noted, it's good to always study the market and find how HIGH PERFORMING units are pricing. Most Airbnbs are not performing (you don't want to model poorly run Airbnbs).
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Ebonie Beaco
Lender · Chicago, IL · Member since 2025 · 204 posts · 101 votes
6mo
Many investors used to rely on rules like the 1% rule, but that standard is harder to find in today’s market and does not always reflect reality. What matters more is whether the rent supports the payment, whether there is room to increase rents over time, and whether the deal still produces cash flow or at least positions you for growth.

Lenders will evaluate the deal based on actual numbers, not just projected upside, so if rents are below market, it can weaken how the deal looks on paper.

If the numbers feel tight, it may be worth negotiating the price, asking for seller credits, or improving the terms. If the deal still works using conservative numbers, then you are likely in a solid position.

Competitive pricing is not just about getting a lower purchase price. It is about making sure the deal makes sense both now and long term.
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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
6mo
Hey Steve! I use RevMax but that is more enterprise level for PM's and larger portfolio operators. From my limited knowledge outside of what I use, PriceLabs, Beyond and others operate similarly, by raising and dropping your rate based on demand trends. If you have comp set functionality that can help a lot. That is tethering your price to similar properties in your immediate area. You can usually put rules and guardrails in I.E. always be 10% less than comp A and 5% less than comp B to a floor of $120 per night. If you have that functionality it is still not set it and forget it, I would recommend no more than monthly manual checks against market averages i.e. you are in line (+/- 5%) of the 30 and 90 day trendlines. Hope that helps!
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Collin HaysBusiness Member
Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
6mo
Mike hit the nail on the head. Go incognito on your browser, look at your listing, competitors, and figure out what is going on. Pricelabs is useful, but can give a false sense of security.
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