Understanding the exact Airbnb pricing strategies or any Airbnb pricing strategy is crucial for all hosts to define the accurate price for guests. You need to avoid all Airbnb pricing mistakes to take your dynamic pricing business to the next level. Here, I have listed some Airbnb pricing strategy mistakes and pricing tools of the owner which will assist you with improving your listings with dynamic pricing.

Airbnb is a vacation rental corporation that provides services for tourists, family trips, or any kind of vocational events with a flexible Airbnb pricing strategy, implementing a smart pricing strategy. 

Recommended: Read tips to buy a washing machine for rental property.

The term rental means given for a specific time in exchange for money and the term rental is often directly related to Airbnb strategy.

For night stay, all Airbnb room or house hosts have a fixed nightly rate strategy to avoid any hidden fees.

Airbnb pricing strategies

If you’re an Airbnb host, like other Airbnb hosts, for the 1st-time at Airbnb, there are a few frequent blunders to avoid, which can have a variety of bad implications, ranging from your advertising not showing prominent search results and less occupancy rate to the end of your Airbnb enterprise in more extreme circumstances and beyond. 

We’ve put up this guideline and factors like location to assist you about how to know if Airbnb is legit and avoid Airbnb pricing strategy mistakes about dynamic pricing per week and nightly rate:

1) Incorrect communication

It is critical to communicate effectively with your visitors about the Airbnb pricing strategy and price as hosts. Otherwise, your occupancy rate will drop. You ought to be approachable and unpretentious while still maintaining a proper demeanor.

Also, make use of tools like touch keypads or alarm systems to help guests communicate with you about price or other affairs whether they live for the short term or long term. For instance, even your guests are short term, make sure to provide excellent service.

You should avoid being too casual or too formal as an Airbnb host. In the center, there seems to be a perfect balance. 

People are going to feel very much at ease with a speech pattern that is similar to their own, as a rule of thumb. When coping with challenges, communicating is particularly vital.

When a visitor or guest has a concern about pricing or the price you ask for they’d like to discuss with you, they frequently just want to “vent.” Then that’s your job to remain silent and observe! 

Relating to the visitor might improve their mood, keep them quiet, and leave them feeling heard. The difficulty will then miraculously shrink to a fraction of its original size. 

However, ignoring issues like pricing problems will irritate guests, so address their price concerns immediately.

Whenever you receive an email from visitors or guests, call them right away. This will be greatly appreciated by your guests.

Many homes are booked with the desired pricing as a result of how successfully hosts handled a situation.

2) Refusing to request feedback

While stunning images, explanations, and facilities can surely help hosts generate more inquiries, customers or guests would always check at your price and evaluations to see what management policies have to say.

More comments should not only make your money higher in searches, but they’ll also help you establish yourselves as a competent and trustworthy host at a great price point. Similarly, make certain that you take the necessary precautions to avoid and address property management concerns such as pricing issues.

Use this long list of USA business citation websites and get more buyers through your Airbnb pricing strategy.

3) A lack of courtesy

It’s worth remembering that just being an Airbnb host entails more than simply handling bookings, appointments, and money. It’s all about delivering a great and unforgettable web presence as a host or real estate agent.

Throughout, throughout, and then after your visitors’ stay, become the greatest person you can be. Respond promptly to all inquiries (at any hour throughout the day or midnight), be available when your customers require assistance and maintain a good demeanor.

4) Failure to automate your home (Automated home)

Airbnb property managers need to automate property (automated home) and use cutting-edge techniques to improve life as a host as smoothly as possible. Online thermometers enable hosts save some energy, analyze electricity consumption, and correct the problems from a distance.

Possessing a central key locking system makes it easy to maintain the maximum security of your house while also removing such a need to transfer keys in reality.

5) management conducting business illegally

It isn’t always about the possibility of getting into legal jeopardy, so make managers are up to date on local laws and local price rate to fill your house with guests. They just established a pricing platform that compiles all information on simple and rental property rules to assist landlords in keeping up with local legislation.

To be assured you’re enforcing the maximum guidelines, search by your region to get local search results. More often than not, local search results are the most accurate.

6) Ignorance of the property management sector

Like other property managers or Airbnb hosts, either you use or fill it or not, your serviced apartment market is transforming rapidly, but you’re a component of it. David McConnell, CEO of Rented.com, prophesied in 2015 that 2016 will be the property management company’s “Year with the Client,” and that’s precisely what we’ve witnessed thus far.


Consolidation, convergence, and professionalization are all happening to property managers and hosts. The serviced apartment industry will be quickly shifting in the near future, particularly for homebuyers, as hotel rooms join and spend in the industry, the biggest real estate agents grow even bigger, and VRBO appears to align oneself more often with visitors and private landlords than residential clients.

7) Excessive activity

This was to say that running a cheap pricing hotel with a low per night rate should be enjoyable and beneficial for hosts like you, but don’t ever try to do something lonesome as far as price is concerned. 

We have seen many irritated property owners who are simply undertaking more price to justify keeping a vacation property as a point of origin of entertainment, including some house owners endeavoring to do this all without even any external assistance and others working to keep the authority of the household while going to pay for business services such as demand response, service operations, nice pictures, regular maintenance, etc.

8) Home Decor 

Airbnb hosts should have a layout that will attract a wide range of people and guests. For this, you may need to pay a cleaning fee or develop pricing. Your furniture, wall decorations, and other household items do not attract people or guests when they’re overly out there. 

Look for a layout that appeals to a wide range of guests while also being effective in terms of prices. I suggest the following implementations: 

  • Walls should be painted white color only( it makes the room looks bigger and wide, and can be easily painted)
  • Hang some beautiful paintings or pictures on the wall.
  • Furniture should be of neutral color ( cushions of any color will match and look appealing).
  • Chairs and tables made of wood are better as they look new again with every polish.
  • Consider the furniture and other items’ function (whether they are suitable for everyday use or occasion only). 
  • Curtains with a combination of light and dark colors will look awesome. 

If you can get furnishings with washable coverings in exchange for a cleaning fee, that’s a wonderful idea as well. In the event of an Airbnb emergency, the covers could be cleaned or changed in this manner. 

Faux leather should be avoided because it wouldn’t persist longer and “pieces” begin to peel apart.  

9) Becoming overly impersonal or excessively intimate

Some people are born with this ability, while others must work hard to acquire it. When vacationing in a new location, many Airbnb guests would like an intimate and unusual encounter with their hosts. 

As people would like to acquire a feeling of who you are as just a person as well as your affection for your native place. That’s not to say you should come knocking on their doors every several hrs with directions and travel information.

It’s a case of deciding for oneself how pleasant one’s guest desires you to be, just as in every other occasion.

They’ll let you know how much engagement they need through their queries and facial expressions. 

Ensure that you offer them your recommendations for locations to dine and activities to do if they inquire.

10) Creating a theme for your room

The term rentals: we’ve all viewed those photographs of some weird Airbnb, a cosmic vacation rental house with a time machine theme, or a Cherokee Indian-inspired teepee for an extra guest. However, until you are an experienced interior designer we highly urge you to try to prevent designing a customized setting for your guests at a good price. 

Well, having a unique selling feature for your Airbnb vacation rental business is important, but going overboard with your design risks losing a significant portion of your target audience. Although 10% of customers would like to remain in a modest Chinese-designed residence and rest on a mattress, the majority of customers would choose a fairly balanced room with a comfortable bed even if it goes beyond pricing.

11. Exaggerated Images

You should upload the most intriguing pictures of your vacation rental beyond pricing.

It is the right method?


Realistic and clean images are your best bet. So, showcase those pictures from which your client can get a better idea of what to expect and what not!

All the pictures should have a high resolution and click them from different angles. Recommended picture size is 1024px x 683px. Do not forget to add some images of surrounding locations especially of tourist spots.

12. Unchangeable Pricing System

Change the price on Airbnb (Airbnb pricing) with the fluctuations in demand so that your property can never be over or under-priced. Follow and set those business modes which professionals adopt.

A day of the week like weekdays and weekends are not the same in every industry; the same is the case with Airbnb pricing. So, you can say Airbnb has dynamic pricing.

Investigation of the dynamic pricing system and nightly rates of hotels, special events, and other competitors helps in rate optimization for vacation rentals which you own.

Moreover, take seasonality into consideration for Airbnb smart pricing. Keep on adjusting beyond pricing according to peak and dead seasons. Pricing too low during top season is just like leaving money on the table.

Another aspect is, planning ahead of events, which is beyond pricing. The local calendar comes to save you tones of time and money as you can get an idea of upcoming sports, cultural, religious, musical or other events in your locality.

The Airbnb dynamic pricing system and Airbnb pricing tools of Airbnb vary in different areas and it depends upon a number of factors. The influx of guests is one of the primary factors which will help you navigate a better Airbnb smart pricing strategy. Normally, on average, a 2 to 6 times increase per night has been recommended by the professionals.

13. Not Using Artificial Intelligence

The hotel and rental industry are evolving under the umbrella of technology with flexible nightly rates and special events; do not ignore the potential of the Automated Pricing Tool.

These algorithms have the capability to detect the changing demands and can suggest an appropriate Airbnb price optimization plan. These apps worth spending some money as your vacation rental business in dynamic. So, avoid short-term planning and purchase some reputable application which can help you as a guide.

They will notify and make nearly accurate predictions whenever Airbnb hosts need to change Airbnb pricing strategies.

Airbnb Host Best Practices 

There are several measures that can be taken by the Airbnb hosts for the Airbnb pricing strategy if they lease full apartments to enhance the performance of your visitors, eliminate problems, and boost the protection of your house and visitors.

1)Reserve in a Snap

Many Airbnb hosts checked it out and discovered it to be problematic, so those hosts switched it off. 

  • Before approving a booking, Airbnb hosts advocate communicating with interested visitors. You should obtain a sense of who the visitor is and why he is coming to your place. 

And who are now the guests and what are their identities when there are more than one?

  • If they’re newcomers to Airbnb, their joining date would be listed, and they won’t have any ratings. A big portion of the visitors are first-time Airbnb users. Inquire whether they are fresh to the company or whether they have gone through all of the listing’s contents. 

Inform them that feedback supports an owner’s decision to approve or decline a booking pricing. To save time and price, you may leave a preserved feedback. 

  • Immediate Booking does not tackle these Airbnb pricing difficulties if you do not permit companion animals or whether you’re picky about whose companion animals you permit. Since you do not even permit puppies (most customers don’t check the tiny print but someone with a puppy registers on Instant Book, you’ve got trouble In that situation, postponing the bookings are difficult.

2) Locks that do not require a key

  • Schlage Touchpad Connect locking with a z-wave interface is used by Airbnb hosts. They can create a different algorithm for every gu by employing these locks. 
connected keypads

To make it easier to recall, they take the final four figures of the customers’ contact numbers. They also store the locks for every apartment in a storage locker in case the lock fails or something goes wrong. 

They’ve only had to employ the keys a couple of times, but they keep them on hand simply in case of emergency Z-Wave is a radio frequency transmission that may be transmitted at maximum capability and is much more trustworthy than WiFi locking.

  • To avoid unexpected itemized receipt, program the doors to activate the special identifier on a specific day and hour for verification. This one is especially crucial if you already have multiple bookings scheduled in a row such that your maintenance crew can plan accordingly. 

You can accept or refuse an early registration demand depending on the routine. You can even set the lock to disable the password at verification, preventing visitors from checking out late with permission or reentering afterward.

  • You may use the application to track automatic door activities and observe when someone logged in and what they did throughout their presence. You may also track the progress of each latch, including the operating voltage and whether or not the entrance is secured or opened. 
  • When you have fixing, cleansing, or servicing employees who require admittance you can provide them with a distinctive number If they pay for per hour, you should take note about when they enter and exit to hold them in check.

3)Cameras that record video

  • On the outside of the Airbnb accommodations, hosts deploy NetGear Arlo Connectivity CCTV. One camera is focused at an offloading bay to keep an eye on the automobiles and persons leaving them. 

They only permit one automobile per room to keep track of things. Only visitors are permitted to park apart, therefore if an unauthorized vehicle is stopped on the land, the proprietor can inquire and, if required, have it taken or destroyed.

  • Each camera is focused at each door, allowing Airbnb hosts to see who is coming and how many individuals are there. They can openly discuss this if the booking is reasonable and three individuals arrive with bags.
  • To prevent the risk of inadvertent harm, companies do not treat effects gear (bike, skis, paddles, tennis rackets, etc.) within their facilities. For such items, they have a secure storage shed. 

When someone brings their bikes in when they didn’t bother reading their community standards, they can be told to take them out and keep bikes in the secured tool container, outside either on, or even in their automobile.


When hosts decide to employ recording devices, be certain to include them in your ad. If individuals are informed that video cameras are installed, you can prevent troublesome visitors and safeguard both your business and your visitors.

Information sharing is essential for having a positive host impression and preventing difficulties. Before, throughout, and following your visit.

Airbnb superhost with no reviews may confuse the visitors. However, this happens when the hosts are new and have no customers yet with less flexible pricing.

Final Words

Hope you have got complete guidance about Airbnb pricing strategy mistakes and pricing tools like the one that helps you avoid those mistakes. You should keep all the given suggestions about dynamic pricing in your mind.

To avoid Airbnb pricing mistakes while hosting, keep in mind that good reviews of your customers will benefit hosts like you in terms of pricing. An unhappy customer may leave feedback  “Airbnb scammed me” which can cause trouble for you. So, make sure you like other hosts have the best pricing strategies.

We wish you get ready to start your journey. So are you ready to start a long term business?

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