Updated : Feb 26, 2025
Airbnb peak season is a time for vacation rental property managers to bring in the most revenue amid high demand, eager travelers, and fierce competition. Making vacation rental pricing mistakes could drastically reduce their profit margin.
Don’t sweat it! This guide is your insider’s playbook for dominating pricing during Airbnb’s peak season. We’re ditching the jargon and getting honest about avoiding common vacation rental pricing pitfalls, embracing innovative strategies, and raking in those bookings.
Airbnb Peak Season: A Balancing Act, Not a Free-for-All
Think of seasonal pricing as finding that perfect chord – it must resonate with you and your guests. The goal isn’t just to hike up prices; it’s to find the optimal price – the magic number that maximizes both occupancy and your earnings. Underprice, and you’re giving money away. Overprice and you’ll be twiddling your thumbs while competitors fill their calendars.
Pitfall #1: Trusting Your “Gut” Over the Numbers
As a property manager, you have the confidence of knowing your market inside out, which you should. However, relying solely on your knowledge or outdated information is like navigating the sea with an old map. The vacation rental landscape constantly shifts, influenced by local buzz, new travel trends, and global events. It is one of the most common vacation rental pricing mistakes to rely solely on your knowledge and not analyze market data to drive your pricing strategy.
The Fix: Combine your experience with market data. Tools like PriceLabs Market Dashboard give you real-time insights into occupancy trends, length of stay, average daily rate, booking windows, and more. You can even see which amenities, cancellation policies, and Airbnb cleaning fees are leading to more bookings amongst your competitors. With data by your side, you can significantly decrease any chances of making vacation rental pricing mistakes.
Pitfall #2: Stuck in Static Pricing Land
Imagine trying to win a car race with a horse and buggy! Using static pricing for your rental is just that. Static pricing—setting fixed rates regardless of demand—is a relic of the past. In the current short-term rental industry, your pricing strategy is outdated if you don’t adjust to meet your guests’ needs. You can’t have the same nightly rates for weekends and weekdays or last-minute and far-out bookings. The rates need to be adjusted according to fluctuating demands. You will lose revenue if you don’t constantly analyze your competitors and the market.
The Fix: It’s time to embrace dynamic pricing, which automatically adjusts your rates based on real-time factors: demand, seasonality, local events, and even the day of the week. Tools like PriceLabs Dynamic Pricing allow you to automatically update your prices to align with market demand. The advanced customizations give you complete control over the pricing strategy and ensure your market knowledge is incorporated in the pricing suggestions.
Pitfall #3: Missing Out on Local Event Mania
Think about it: a vast music festival rolling into town, a significant convention booking all the hotels. Such events significantly increase the demand for vacation rentals. Missing out on these opportunities is like ignoring a cash machine outside your door!
The Fix: Become a local events sleuth. Sign up for tourism newsletters, check community calendars, and follow local event websites religiously. Set up alerts so you’re always in the know. Another way to stay updated about upcoming events is by looking at the PriceLabs Events Calendar, which lists all the upcoming events in your market. Once you know of any upcoming events, prepare your vacation rental for them, align your marketing strategies with these events, and adjust your pricing strategy to accommodate increased demand.
Pitfall #4: Forgetting Your Pricing “Safety Net”
Dynamic pricing tools are powerful, but they need boundaries! Forgetting to set a minimum price is like driving without brakes—you could end up in a ditch. Your revenue manager may make the wrong customizations, or your pricing tool may set your price too low based on lowered demands. Setting your price too low means you can’t meet your basic costs.
The Fix: You can easily avoid this vacation rental pricing mistake by setting a minimum price for your listing. Crunch the numbers and determine your minimum acceptable nightly rate based on all your expenses: mortgage, utilities, cleaning, management fees, etc. Then, make sure your dynamic pricing tool respects that lower limit. PriceLabs allows you to have a minimum and maximum price limit and set a base price to ensure your pricing algorithm considers your strategy.
Pitfall #5: Ignoring the Competition
You’re not alone out there! Travelers are comparison shopping like crazy, and if your prices are way out of line with similar properties, you’ll lose bookings.
The Fix: Become a competitor stalker (in a friendly way, of course!). Regularly monitor your competitor rates, amenities, and listing quality. Aim to offer a better value proposition – maybe a unique amenity, exceptional service, or a prime location.
Pitfall #6: “Set It and Forget It” Syndrome
Pricing isn’t a one-time chore; it’s an ongoing dance. Market conditions can change on a dime, so your pricing strategy needs to be nimble. One of the biggest vacation rental pricing mistakes is building a fixed “set it and forget it” pricing structure.
The Fix: Mark your calendar for regular pricing check-ups – ideally weekly or even daily during the peak season frenzy. Track your occupancy, revenue, and booking pace. Be ready to adjust on the fly based on what the market is telling you.
PriceLabs Revenue Management
Analyzing your competition and manually updating your pricing can be tedious and prone to errors. With PriceLabs Revenue Management Tool, you can automate pricing updates based on real-time market trends.
Sign Up For Free TrialPitfall #7: Failing to Showcase Your Property’s Unique Charm
In a sea of rentals, simply offering a place to sleep isn’t enough. You must highlight your property’s uniqueness to grab attention and justify your rates.
The Fix: Emphasize your property’s killer features. Amazing view? Private pool? Gourmet kitchen? Make sure those are front and center in your listing and photos. Think about targeting your ideal guests with your amenities and furniture!
Automate Your Way to Pricing Bliss: Dynamic Pricing Tools to the Rescue
Manually tracking market data and competitor rates and adjusting your prices constantly? Ain’t nobody got time for that! Dynamic pricing tools are your secret weapon, automating the process and freeing you up to focus on other essential tasks.
Tools like PriceLabs integrate with channel managers such as Rentals United and Hospitable.com. These tools can automatically push your rates across all your booking platforms, helping ensure your pricing strategy is efficient and aligns with your business goals.
Make Pricing Your Superpower
Don’t consider pricing a headache; see it as your competitive advantage. By dodging these common vacation rental pricing mistakes, embracing data-driven strategies, and automating with the right tools, you’ll be well on your way to crushing Airbnb’s peak season and maxing out your profits.
Frequently Asked Questions
What are the best dynamic pricing tools out there?
Some popular options include PriceLabs, Beyond Pricing, and Wheelhouse. Key factors to consider are integration with your channel manager, customization features, and the tool’s pricing structure.
How often should I tweak my prices during peak season?
The market moves fast during peak season, so aim to review and adjust your pricing at least weekly and, ideally, daily. Monitor occupancy rates, competitor pricing, and local happenings to spot opportunities.
What’s the best way to make my property stand out from the crowd?
Showcase your unique selling points!
- Highlight Amenities: Private pool? Killer view? Spa-like bathroom? Show it off!
- Offer Stellar Service: Personalized recommendations, lightning-fast communication, and welcome goodies.
- Promote Your Location: Close to attractions? Great restaurants? Easy access to transport?
- Invest in Pro Photos: High-quality images are a must.
- Know Your Ideal Guest: Design and market your property to attract them.
Occupancy vs. ADR (Average Daily Rate): Which is more important?
A: It’s all about balance! You want a high occupancy rate and a healthy ADR. Filling your property at rock-bottom prices isn’t a winning strategy.
