It’s February in London and apart from a small dash of snow it’s been a rather mild winter. Unlike last winter I have not been forced by Airbnb to refund my guests because their train or plane was cancelled due to the snow ‘force majeur’. This may seem fair to the guests but for me it was a real loss.
Should you be accepting one night bookings?
One of the reasons for my success (if I may say so) at airbnb is that I am willing to take 1 night only guests. It’s very tempting not to take single night guests because of the trouble re-setting the room and checking in and out new guests. But if so many other people are not taking one night guests you may find a more steady stream of guests if you do. Plus you won’t have single night gaps in your calendar.
It’s my current strategy to make sure i’m full – ALL THE TIME. If that means taking single night guests then I will. If it means I have to drop my price to super low then I will. I’m currently charging the lowest price I have ever charged in 5 years of airbnb. I have to do this to stick with my ‘be full’ strategy.
Why do I think the ‘be full’ strategy is a good idea? First I believe it’s better to have some money than no money. Cash flow is important. Second even a booking which may have little or no profit can get you yet another review to add to your numbers. Third I believe Airbnb giving a search ranking boost to those listing which are getting bookings. So to keep your listing in Airbnb’s good books then your listing needs to be getting booked (if that makes sense).
How much should you discount to get a booking?
To be honest with you in my opinion I am willing to accept 50% off my asking price if it means I don’t have an empty listing. But usually I drop my price by about 10% if I see an empty listing less than 7 days away. But it does also depend on which day of the week we are talking about. Sundays and Mondays tend to be my least popular days (especially Sunday) so I will reduce my price more aggressively on these days.
I do use the airbnb smart pricing tool on all my listings. I have had concerns about using the smart pricing tool in the past because it seemed to only ever offer my set minimum price, no matter what the day of the week etc. More recently I have noticed that the prices do seem to be higher but only about 3 months away. It’s as if the airbnb smart pricing system assumes that if your not booked out 3 months ahead then you need to discount immediately.
I find that most of my guests book about 2 weeks in advance. Most of my guests are here to see a little bit of London or see friends. It’s even not unusual to get bookings same day. When I stay in another airbnb it’s often part of my annual family holiday planned 6 months previously. This is very different to the type of trips most of my single night guests are making. The smart pricing tool does not seem to suit my type of guest’s booking pattern.