Pricing Strategy for Multiple Properties: How We Do It

As an Airbnb host with multiple properties, it’s crucial to adopt a smart pricing strategy that ensures both competitive rates and maximized earnings. With seven apartments in Gurgaon—comprising three-bedroom and four-bedroom units—we’ve perfected a method of pricing that works for us and helps us stay ahead of the game.

What’s the secret behind our pricing success? It’s rooted in the approach typically used by hotels. This strategy may not be the norm for every Airbnb host, but for those with multiple properties in a similar area, it’s proven to be an effective method to maximize bookings and revenue. Here’s how we do it and why it works.

1. Start with a Base Price for All Properties

When we list our properties on Airbnb, we start by setting a base price for all our apartments. These prices are competitive with other listings in the area and take into account factors such as location, size of the apartment, amenities, and seasonality.

By having a standard base price, we ensure consistency across our listings and simplify the initial stage of managing multiple properties. This base price is typically lower than what we’d expect for a peak period, making it attractive to potential guests who are looking for a deal, but not too low to undervalue the properties.

2. Adjust Prices Based on Booking Volume

One of the key features of our pricing strategy is adjusting the rates as we get closer to the booking date. The moment three out of the seven apartments are booked, we begin to raise prices across the board. This is based on the principle that demand is increasing and availability is shrinking.

When booking volume picks up, the dynamic pricing mechanism kicks in. If multiple guests are showing interest in the properties, the supply becomes limited, and it’s time to raise prices. This strategy mimics what you’d see in the hotel industry: the more rooms that are booked, the more the remaining rooms are worth. For Airbnb hosts with multiple listings, this is a great way to ensure you’re capitalizing on the demand when your properties become scarce.

3. Factor in the Time to Check-In

The next important aspect of our pricing strategy is to consider the time to the check-in date. This is where our approach begins to resemble a traditional hotel model.

Closer to Check-In Date: As we approach the check-in date, we adjust the prices again. This is particularly effective in the hospitality business because guests booking last-minute are often willing to pay a premium for the convenience and availability.
Farther Out: On the flip side, if the check-in date is far out, we keep the prices more reasonable to ensure we start getting bookings early. This strategy ensures we’re not sitting with empty apartments in the near future and have a steady stream of guests booking in advance.

4. The Impact of Local Market Trends

While our core strategy is based on volume and time to check-in, we also keep a close eye on local market trends in Gurugram. For example, if there’s a local event or an influx of business travelers to the area, we might adjust our rates even more aggressively to reflect the increased demand. Keeping an eye on local trends helps us make well-informed decisions about when and how much to increase prices.

5. Consistency is Key

For this pricing strategy to work, consistency is key. Guests expect a certain level of fairness and transparency when booking. By regularly monitoring booking patterns and adjusting our pricing based on availability, we ensure we stay competitive while making sure our rates reflect the true value of the property at any given time.

Why This Pricing Strategy Works for Us

This strategy has worked remarkably well for our seven apartments in Gurgaon. Here's why it’s been effective:

Increased Revenue: By raising the price when demand increases, we’re able to maximize our earnings without losing bookings. This is especially important during peak seasons or as we approach the check-in date when guests may be more willing to pay for last-minute stays.
Optimized Booking Flow: We’ve found that this strategy creates a steady stream of bookings. Guests who book earlier get the best rates, while those who wait until closer to the check-in date help fill in gaps at higher rates.
Balanced Inventory Management: Since we have multiple properties in the same area, adjusting prices based on occupancy helps us spread out bookings across all apartments, avoiding over-booking or under-booking any particular unit.

Tips for Other Hosts with Multiple Properties

If you’re a host with multiple properties in the same area, here are a few additional tips that can help you adopt this pricing strategy effectively:

Use Airbnb’s Smart Pricing Tool (with Caution): If you’re not able to manually adjust prices regularly, consider using Airbnb’s smart pricing tool. However, be sure to double-check its recommendations and adjust based on your own understanding of the market.
Monitor Competitor Pricing: Keep an eye on other properties in your area to make sure your pricing is in line with the local market, but not undercutting your own value.
Track Your Data: Use Airbnb’s analytics and other tools to track how changes in price affect booking volume. This will help you refine your strategy over time.
Don’t Forget Minimum Night Stays: Consider adding restrictions on minimum stays, especially during high-demand periods. This can help increase your average nightly rate and ensure longer stays for higher revenue.
Experiment and Learn: Each property is unique, so don't be afraid to experiment with different pricing strategies and adjust based on results. What works for one may not work for all, so staying flexible is key.

When you have multiple properties in the same area, pricing becomes an important tool to drive bookings and maximize revenue. Our approach—starting with a base price, adjusting based on demand, and considering the time to check-in—has proven to be effective in our case. By following these principles, we’ve been able to increase our bookings, manage our properties more efficiently, and boost our bottom line.

If you’re a fellow Airbnb host with multiple listings, consider adopting this pricing strategy to see how it works for your business. It’s simple, adaptable, and effective—a real game-changer for those looking to take their hosting to the next level!