One of the most telling signs of a business smart Airbnb host is their approach to pricing nights that are far in advance. By ignoring this aspect, you risk having to honor bookings that were made when your pricing was neither optimized nor updated. This leaves money on the table and in this economy, can you afford to do that?
Team DPGO has developed a new feature designed to make this distant night pricing conundrum easier than ever.
First, let’s look at the logic behind our advice to increase prices for days more than 90 nights in advance.
Why Increase Prices for Stays 90+ Nights in Advance?
In the simplest of terms, we recommend increasing prices for nights more than 90 days in advance because it avoids the potential loss of income.
Our pricing engine optimizes your pricing based on real-time market data. We cannot optimize prices for dates further than 90 days in advance, because the data that we need simply hasn’t occurred yet. We use things like currency exchange rates, booking pace, events in the area, recent reviews, and more, all of which are time-sensitive. If these factors haven’t even occurred yet, we can’t possibly use them to optimize your pricing.
So, in the interim, our pricing software increases your prices for dates further than 90 days in advance to act as a placeholder for optimized pricing. We do this because, after years of industry experience, we have detected plenty of booking shares. Travelers that book accommodation so far in advance are usually willing to pay higher prices in order to ensure they succeed in booking their first choice of vacation rental property.
How Do I Enable This Feature on DPGO?
Great question! All you need to do is head to your DPGO account and click on the Settings tab on the panel at the top of your screen. You’ll then be able to move through our various setting tabs, which include Prices, Minimum Stays, Discounts, Weekends, and Seasonality.
It’s the Prices tab you’ll need for your ‘Distant Nights’ setting. It is a simple selection toggle, and the pricing engine does the rest!
What If I Don’t Use a Dynamic Pricing Tool like DPGO?
Well, it’s still possible to benefit from distant date pricing, but you’ll have to manually update your prices, which will take time and careful management that most short-term rental hosts simply don’t have to spare.
Instead, you’ll need to click ahead to dates over three months in advance and start manually updating your pricing. The percentage by which you increase your prices is really up to you. Depending on which season you’re in, we would recommend an increase of anything from 5% to 25%.
How Can I Get Started with DPGO?
All you need to do is visit our website (www.dpgo.com), click ‘Sign Up’, and start pricing your way to bigger profits!