How To Price Your Airbnb in Toronto

How To Price Your Airbnb in Toronto

Beyond Pricing

About Us• The first and largest dynamic pricing software provider for Airbnbs

and vacation rentals• $1.5M in bookings priced per week• Powering pricing for 95% of “next-generation” property

managers and hospitality brands like Onefinestay, MyVRHost, Guesthop, Flatbook, and dozens of others

• 10 years experience helping the world’s largest airlines and hotels with dynamic pricing

• Previously managed 25 vacation rentals in San Francisco as Beyond Stays

@beyondpricing beyondpricing.com

Beyond Pricing

What is Dynamic Pricing?

Changing your price based on supply and demand


Beyond Pricing

Why is this important?


Beyond Pricing

Demand Changes A Lot


Beyond Pricing

As Demand Changes, So Do Prices

Pric

e

Rooms Booked

High Season

Low Season

$200

$150


Beyond Pricing

What Happens When You Don’t Vary Your Prices

Host #3

Host #2

Host #1


Beyond Pricing

!$100!!

!$120!!

!$140!!

!$160!!

!$180!!

!$200!!

!$220!!

!$240!!

Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15

What Happens When You Don’t Vary Your Prices

• Host #1 - $140/night – Chronic Under Pricer• She will be filled 95% of the time and excited about her high

occupancy• Host #2 - $180/night – Average Jane

• She is excited because she is filled from March-October and thinks winters are just “slow”

• Host #3 - $220/night – Occasional Olivia• Her calendar is usually open, except for big events which are

booked months in advance


Beyond Pricing

Hosts Are Losing Millions of Dollars by Using Flat-Pricing

$200

$100

$300

$400

Date

Single Nightly Rate

Optimized Rate

Lost revenue

Lost bookings

• Money left on the table during periods of high demand

• Units sitting empty during periods of low demand


Beyond Pricing

Dynamic Pricing Helps in 2 Ways

1. By lowering your price when demand is low, you can increase your occupancy

2. By increasing your price when demand is high, you can increase your average nightly rate

$200

$100

$300

$400

Date

Additional

$200

$100

$300

$400

Date

Higher Nightly


Beyond Pricing

1. Seasonality 2. Day of Week 3. Events

3 Biggest Factors Driving Demand


Beyond Pricing

Seasonality is Different in Every CityC

hang

e in

Dem

and


Beyond Pricing

-20%

-15%

-10%

-5%

0%

5%

10%

15%

20%

25%

Jan$15' Feb$15' Mar$15' Apr$15' May$15' Jun$15' Jul$15' Aug$15' Sep$15' Oct$15' Nov$15' Dec$15' Jan$16'

Miami' SF'

San'Diego' NYC'

Seasonality Also Differs in Neighborhoods of the Same City

Cha

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in D

eman

d


Beyond Pricing

!20%%

!15%%

!10%%

!5%%

0%%

5%%

10%%

15%%

20%%

25%%

30%%

Jan!15% Feb!15% Mar!15% Apr!15% May!15% Jun!15% Jul!15% Aug!15% Sep!15% Oct!15% Nov!15% Dec!15% Jan!16%

Lake%Tahoe:%King's%Beach%

Lake%Tahoe:%%Kirkwood%/%Sierra!at!Tahoe%

Seasonality Also Differs in Neighborhoods of the Same City

Cha

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in D

eman

d


Beyond Pricing

!10%%

!5%%

0%%

5%%

10%%

15%%

20%%

25%%

30%%

Jan!15% Feb!15%Mar!15% Apr!15% May!15% Jun!15% Jul!15% Aug!15% Sep!15% Oct!15% Nov!15% Dec!15% Jan!16%

San%Diego:%%Gaslamp%

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Cha

nge

in D

eman

dDay of Week Variations Are Different in

Every City


Beyond Pricing

!20%%

!15%%

!10%%

!5%%

0%%

5%%

10%%

15%%

20%%

25%%

Sun% Mon% Tue% Wed% Thu% Fri% Sat%

Madrid%SF%Mountain%View%

Cha

nge

in D

eman

dToronto Day of Week Changes


Beyond Pricing

Events Can Have Big Impacts on Demand


Beyond Pricing

40%$

50%$

60%$

70%$

80%$

90%$

100%$

1/1/14$ 2/1/14$3/1/14$ 4/1/14$ 5/1/14$ 6/1/14$ 7/1/14$ 8/1/14$ 9/1/14$10/1/14$11/1/14$12/1/14$

JP M

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Health

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Cisco LIVE

Google I/O

Outsi

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Dreamforce

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Openworld

Amer

ican

Soc

iety

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Occ

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Event Impact is Highly Local

VSEvent Location X

Hotel CenterX


Beyond Pricing

So What Happened with Pan Am Games?


Beyond Pricing

So What Happened with Pan Am Games?


Beyond Pricing

A: Too much extra supply, too little demand = low prices

Occup

ancy

CaribanaPan Am Games

How Beyond Pricing Works

We find the right average price for your place.

Then, we change that price based on supply and demand.


Beyond Pricing

Are You a Motel 6 or a Marriott?

VS

VS


Beyond Pricing

Finding the Right Average Price for Your Place is Tough

Williamsburg Private Bedrooms Prices

Num

ber o

f Lis

tings


Beyond Pricing

0"

10"

20"

30"

40"

50"

60"

70"

<$40"

$40,50"

$50,60"

$60,70"

$70,80"

$80,90"

$90,100"

$100,110"

$110,120"

$120,130"

$130,140"

$140,150"

$150,160"

$160,170"

$170,180"

$180+"

Motel 6 Marriott Ritz?

Many Factors Contribute to How Much You Can Charge

• Amenities

• Number of Reviews

• Average Star Rating

• Quality of Pictures

• Number of Pictures

• Stainless Steel Appliances

• Location

• Response Time

• Airbnb Search Ranking

• Number of Bedrooms

• Number of Bathrooms

• Number of Beds

• Extra Guest Fee

• Cleaning Fee

• Instant Book

• Listing Title@beyondpricing

beyondpricing.com

Beyond Pricing

What Matters is How Quickly You Book Versus the Average


Beyond Pricing

We then vary your average nightly rate based on changes in demand


Beyond Pricing

$-

$50

$100

$150

$200

$250

$300

Jan$14' Feb$14' Mar$14' Apr$14' May$14' Jun$14' Jul$14' Aug$14' Sep$14' Oct$14' Nov$14' Dec$14'

Ritz Marriott Motel 6

It’s Important to Know How Far in Advance People Book

Perc

ent o

f Boo

king

s

Days Out @beyondpricing beyondpricing.com

Beyond Pricing

0%#

10%#

20%#

30%#

40%#

50%#

60%#

70%#

80%#

90%#

100%#

1# 31# 61# 91# 121# 151# 181# 211# 241# 271# 301# 331#

Two Implications of the Booking Curve

1. Tells You What Percent of Demand is Still Left Allows you to know whether and when to discount

2. Tells You Whether You’re Booking Up Too Quickly If you are, chances are you can increase your average nightly rate, or “Base Price”


Beyond Pricing

Get Started with Beyond Pricing

1. Sign-up and link your Airbnb account (use code TORONTOHOSTS for 1 FREE month + $30 credit)

2. Review your prices and adjust your base price

3. Turn syncing on to automatically sync prices every night at midnight

Beyond Pricing

How To Price Your Airbnb in Toronto

Travel

week powering pricing

demand changes

prices host

periods of low demand

high occupancy host

periods of high demand

slow host

city changeindemand