One of the most common questions we hear from hosts is: How do I pick the right price? Setting a price can be hard without reliable information about other listings in your area, travel trends, and the interest people have in the amenities you offer.
That’s why we’re excited to be gradually launching pricing tips for hosts around the world. You’ll be able to get personalized, daily pricing information right in your calendar, so you can see how adjusting your price could increase your chances of getting booked, or take advantage of strong interest in visiting your area.
We’ve developed a mathematical model that’s learning how likely a guest is to book a specific listing, on specific dates, at a range of different prices. It uses different types of information, including your listing type, its location, your current price, your availability, and how far off each available date is.
You can see daily price tips that use what the model learns about the likelihood of your space getting booked on each available night. When you see a tip, the model gives you insight on whether you could earn more money while maintaining your likelihood of getting booked, or you could increase your likelihood of getting booked by lowering your price.
You may find that your tips include prices that are lower than the one you set on your own. Your decision to use the tips is entirely up to you, but keep in mind that if you choose to book more nights at a lower price, you could ultimately make more money over time.
Hosts who have already tried using their price tips are seeing great results! While there’s no guarantee price tips will increase bookings, we’ve found that when a host selects a price that’s within 5% of their tip, they’re nearly 4 times more likely to get booked, when compared to hosts whose prices are more than 5% away from their tip.
It’s important to note that each day has its own tip, and that the tips will update daily, based on the latest available data. You can return to your calendar for the most up-to-date tips, and make adjustments as you book more dates or get closer to periods of availability. We hope this information helps you reach your hosting goals, and we’ll continue to look for other helpful ways to provide pricing insights.