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How Much Should You Charge For Your Airbnb? Beyond Pricing Scores $1.5M To Tell You

Discussion in 'News' started by Castle Woman, Mar 26, 2015.

  1. Castle Woman

    Castle Woman Active Member

    http://techcrunch.com/2015/03/26/best-airbnb-price/

    Hotels have sophisticated pricing engines to tell them how much their rooms should cost. Airbnb hosts don’t, or at least didn’t until Beyond Pricing. The startup’s tool plugs into your Airbnb listing, and uses signals about future demand to automatically reprice your room on the fly. Beyond Pricing will charge a 1% fee of people’s Airbnb rate, but can help hosts make 10% to 40% more off their rentals.

    Since launching in early 2014, Beyond Pricing has already entered 26 cities and is controlling $1 million worth of Airbnb bookings per week. But now with a $1.5 million seed led by Resolute Ventures, Beyond Pricing has the capital to expand to more major Airbnb markets and build integrations with other rental services like Homeaway and Booking.com.

    [​IMG]

    Originally, the startup was called Beyond Stays and offered property management for Airbnb hosts But CEO David Kelso tells me as competition from services like Pillow and Guesthop crowded in, “we recognized that our core competency was not logistics and hospitality, but building great software to help them make more from their homes.”

    To figure out what to charge for a room, Beyond Pricing analyzes vacation rental sites, hotels, weather, airline arrivals, and other signals.

    [​IMG]

    Now Beyond Pricing partners with its former property management competitors like Onefinestay, MyVRHost, Proprly, and Lokappart. There are other pricing engines popping up, including Pricelabs and Smarthost, which could drive down its margin. Beyond Pricing hopes that its rapid expansion and the new $1.5 million from Social Leverage, Structure Capital, and Nas’ QueensBridge Venture Partners will give it an edge.

    Kelso concludes “We saw so many hosts and small property managers doing everything right when it came to the hospitality side of the business – creating an amazing experience for their guests – but feeling helpless when it came to the revenue side of hosting.” With Beyond Pricing, hosts with a single room can price just smart as hotels with 200.
     
  2. KonaCoconutz

    KonaCoconutz Active Member

    I'm suspicious of this....I feel like I can handle my own pricing because it is super specific for this island, the time of year and certain events going on. After five years of hosting, I pretty much have the pricing figured out. Not only that, I would be loathe to give away 1%! You better have good books and write that off..it could be a substantial amount at the end of the year when you receive your 1099 from Air.
     
  3. Estuarto

    Estuarto Active Member

    This startup is likely dead in the water now because AirBnB has created their own in house version. Have you had a look at it to see how their recommendations compare to your set prices?
     
    KonaCoconutz and Matt S like this.
  4. Estuarto

    Estuarto Active Member

  5. KonaCoconutz

    KonaCoconutz Active Member

    Funny I had a former guest contact me and say he was now doing this exact thing--developing algorithms for pricing--and would I be willingto talk to him. I said sure and basically told him the same thing I just posted here...then later I looked him up and he was a guest who had complained about something minor (leaving same in the review) and then moved to a hotel in town! LOL!
     
  6. Matt S

    Matt S Active Member

    I am using the price tools on AirBnB that they have implemented in the past month. It's pretty cool, and it doesn't cost anything.
     
  7. KonaCoconutz

    KonaCoconutz Active Member

    Makes sense for metropolitan areas very possibly but would be zero help for me hosting in a rural part of Hawaii Island. Funny that Air beat some start up to their own idea!
     
  8. Matt S

    Matt S Active Member

    That company had 1.5 million dollars in backing. I would think one decent programmer and graphic designer could create "beyond pricing" as a hobby site. What will they do with their venture capital now?!
     
    KonaCoconutz likes this.
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