Get more bookings on Airbnb or Booking

Many hosts believe that getting more bookings on Airbnb, Booking or Homeaway is their logical business goal. Having a full calendar months in advance can be a fetish... At the end of the day, getting more bookings means more income from vacation rentals... But is this really so?

From a revenue management point of view, we will see that what is interesting is not getting more bookings but better ones

If your tourist apartment is booked very quickly (for example, as of today you have 100% booked up to 3 months from now), you are most likely leaving money on the table. You may feel that you are doing well as a host... Although it is damaging the sustainability of your business.

You don't want to get more bookings on Airbnb, you want better ones

Think about it this way: a accommodation at a price of €1 per night will get 100% occupancy. Guaranteed! But more bookings does not mean more income. A host can earn more by renting their accommodation for €200 per night for 25 nights a month than if they have 30 days booked at €150 per night. Let's do the math:

• More bookings: 30 nights x €150 = €4,500 in monthly income
• Better bookings: 25 nights x €200 = €5,000 in monthly income

It seems that the key issue here is to know if your accommodation is undervalued. That is, if the price per night is less than optimal.

What price should I set on Airbnb to get better bookings?

A good way to identify if your accommodation is undervalued is to take a look at your neighbors' prices. If you have an accommodation in the Barrio de las Letras, in the center of Madrid and you're booked 100% for the next 6 months, you probably have the cheapest offer on Airbnb. Your neighbors who have higher prices are not booking as quickly as you. However, they're making more money for those dates as the number of accommodations in the area decreases. This is a basic lesson in supply and demand. It's known as the "booking curve". The booking curve tells you the rate at which your accommodation should be booked, based on demand. If your accommodation is booking very quickly, your price is too low. If your bookings are very slow, your price is too high. For example, Airbnb data indicates that half of the bookings on the platform occur in the 30 days prior to arrival. So if your accommodation is 100% booked for the next month, consider increasing the price to see how much demand you can capture. If you have doubts about why it's not about getting more bookings on Airbnb, but better ones. You can take a look at these two articles:

• Airbnb prices
• Tools for pricing your Airbnb

The general rule for urban Airbnb markets is that you should have 50% booked for the next 30 days; 30% booked for the next 60 days; and finally, 10% for the next 90 days. This rule is flexible and varies depending on the city and neighborhood, but it represents when guests are making reservations. Most hosts don't realize how late their guests book and unnecessarily worry about long-term bookings.You can learn more about what the optimal Airbnb occupancy rate is for your accommodation.

Conclusion

In conclusion, the best way to measure the success of your business is not by having a full calendar 6 months in advance. It is, without a doubt, counting the euros in your bank account.

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