Optimizing your prices according to the seasons and trends is the key to maximize your Airbnb vacation rental profits.
Running a vacation rental without using an Airbnb pricing tool is like selling your car without considering its book value. In both cases, you’d just be guessing the value of your belongings and hence would never be able to get the correct or profitable price for it.
What is a dynamic Airbnb Pricing tool, and how does it work?
A dynamic Airbnb pricing tool is a program that goes through your rental history and external factors like season, market demand, events, and type of property, etc., to suggest an optimized price for your vacation rental.
The data that these tools compare can come from various sources, but usually, they reach your rental information with your competitors and recommend an ideal price point for you.
Other factors that may influence the price suggested include your area’s availability and the amenities you offer.
Why should you use an Airbnb pricing tool?
If you run a rental business, you may have some idea about what these Airbnb pricing tools are about because most of the hosts are now raving about the convenience these tools offer. If you are wondering why one should invest in a pricing tool, then let us tell you the answer.
As a vacation rental host, you already must have so much on your plate to handle. Would you be able to spare time for constantly monitoring the prices your competitors offer, the events that are happening nearby, or that it’s the high season? Wouldn’t it be easier if you let a reliable tool do all the hard work for you?
You may think why I should go for other Airbnb pricing tools when Airbnb offers an innovative built-in pricing tool. There’sThere’s a problem with this built-in tool that the main incentive of Airbnb is to provide the lowest possible rates to the guests. On the contrary, a paid dynamic Airbnb pricing tool will are less concerned about getting you the maximum nightly rate.
These pricing tools are the safest yet easier way to optimize your Airbnb listing rates and help you maximize your profits.
The best Airbnb Pricing tools:
There are many pricing tools available offering you comprehensive features. Choosing the one that would work for you can be a task of its own. That is why we have listed few Airbnb pricing tools for you so that you can choose the one that fits your requirements.
The Airbnb pricing tool that tops our list is wheelhouse and for all the right reasons. The wheelhouse is readily available in the markets of the US and even other countries across the globe.
This dynamic pricing tool offers’ offers’ aggressive”, ”conservative” and ”recommended” pricing models to help simplify the overall pricing process for its user. You also can set the base price and the maximum price to have the pricing control to yourself. There are many adjustment options that you can use like discounts, local special events, etc.
The wheelhouse charges are 1%, which is reasonable considering the Airbnb pricing tool’s features. Moreover, the pricing strategies are straightforward; therefore, you would have no problem customizing or implementing them.
- Integrates not only with Airbnb but with TripAdvisor and other rental websites
- Excellent customer service
- Straightforward to use
- Percentage-based pricing strategy
- It does not integrate with VBRO or HomeAway
- May price a bit higher than the market demand
2. Beyond Pricing
Like Wheelhouse, Beyond pricing is a widely used pricing tool too. It is available in about 7000 cities worldwide; however, it usually covers major cities in North America.
One can say that Beyond Pricing is the original dynamic tool for Pricing and still one of the best. Along with the best coverage that this Airbnb pricing tool offers, it can integrate with various channels and PMS platforms.
Though the pricing cost is 1%, that is perfect for the small apartment hosts. However, as the property becomes larger, the cost becomes higher.
Most functions of beyond Pricing happens on a dashboard and its calendar. You can even manually edit your pricing recommendations on the calendar.
Beyond Pricing uses a kind of composite measurement called ”health score”, so that you can be aware of how well or slumped your pricing strategy is.
- Interactive calendar
- Health score measurement
- No chat option
- Email-only conversation
If one has to name the most straightforward and customizable Airbnb pricing tool with the largest capacity to analyze the rental data, it must be PriceLabs. Using PriceLabs, you can easily view statistics for booking rates, revenue, per booking average price, and so much more.
PriceLabs can manage a large number of bookings and therefore is equally beneficial to small and large property managers.
The only downside of this Airbnb pricing tool is that it is relatively simple and got lesser functions than Wheelhouse and Beyond Pricing. However, it can gather a good amount of data to have an in-depth insight of the surrounding community, and the prices offer, and then you can set your price accordingly.
- Can process large data
- Fewer features
- Not-so-great customer care service
7.DPGO (Not recommended)
DPGO is unarguably one of the fastest developing Airbnb pricing tools. It has got many people raving about it and is sure to give competition to others.
DPGO’s innovative features like analyzing over 200 parameters make it one of the most favorite pricing tools of the hosts. One of the features of DPGO that gives it an edge over others is that it offers excellent control to the host over their listing. It allows the host to set pricing rules for almost every aspect during the booking process.
DPGO offers more than 30 user settings using which a host can adjust the minimum and maximum nightly rate, discounts, and holiday and weekend options. With a DPGO subscription, you would get both the benefits of property management software and the Airbnb pricing tool.
- AI-driven Dynamic Pricing
- Real-time data analyzing
- Flexible payment mode
- Shorter price forecasting range