As our business has been expanding, we are constantly testing our competitors for their pricing… There are many factors that contribute to great guest reviews, so today we’ll just focus on 2;
- Cleaning + Linen Costs
- Nightly Pricing
- Cleaning + Linen Costs
As you may be aware, on Airbnb, the cleaning & linen cost is paid by the guest, however if the cleaning cost is too high, who is going to book & come back…. Other Airbnb Property Management firms all highlight their services, but do not promote their actual cleaning + linen costs (unless you ask). Recently, while attending an Airbnb seminar in Brisbane, a person approached me for advice on getting better occupancy for her 3 bedroom, basic Queenslander in Windsor. The first question, I asked was “How much is the cleaning cost + nightly rate?”
The Property Management company she used, told her that the cleaning cost is paid by the guest & she doesn’t need to worry about it. The actual cleaning cost is $500 per stay + $250 nightly rate, with a 2-night minimum stay. So, for $1,000 for a 2 night stay….would you stay? The majority of other Property Management firms cleaning cost is the linen, which they ‘outsource’. SleepOver Brisbane started in 2016 with a 1 bedroom apartment in New Farm & the cleaning + linen was completed using our home washing machine, drying on the line & folding out of the dryer, while hot. Today, we now have commercial Maytag washing machines + Dryers & extended the clothes line, so that you still have that clean linen fragrance. By keeping our linen cost ‘in house’ we are able to keep the cleaning cost, paid by the guest, at an affordable rate.
Having high occupancy is not rocket science, it comes down to supply / demand + your nightly price (& cleaning cost). Again, comparing other Property Management firms, they promote their Price Optimisation
Airbnb has a feature called Smart Pricing. Basically, you put in a high / low price & Airbnb adjusts this on supply / demand (aka Price Optimisation) Over the years of using Airbnb, the Smart pricing isn’t so smart! It doesn’t consider your individual property & the fact that you have unique features (like a big balcony or pool or great artwork etc…). So, you find that your property is being offered months in advance, for a low nightly price. At SleepOver Brisbane, we use the supply & demand or low & high price model. This pricing is individualised per property & adjusted continually, closer to availability. We are proud to state our occupancy is > 90% & in some cases, continually 100% every month. Again…not rocket science