Why More Airbnb Hosts Are Talking About Revenue Management (and why you should too)
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A few years ago, life as an Airbnb host was pretty simple. Put your place on Airbnb, set a price you feel good about, and the bookings usually roll in. That’s not how it works anymore.
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There are way more short-term rentals out there now. In most places, guests are spoiled for choice. And that means pricing mistakes, even small ones, hurt.
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These days, pricing isn’t about “high season” and “low season” anymore. It’s about adjusting prices more often based on what’s actually happening in your area, events, etc, what similar places your neighbours are charging, and how quickly bookings are coming in.
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At the same time, costs keep going up. Cleaning, utilities, repairs, taxes and it all adds up. What matters is charging the right price on the right nights, not just getting someone through the door.
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You’re no longer just competing with other casual hosts. More and more listings are run by professional managers, using pricing tools and data. Even if you only have one property, you’re up against people whose prices change automatically as the market moves.
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That’s where revenue management tools come in. They look at things like competitor prices, local demand, booking trends and more, and some now use AI to spot changes before they’re obvious. You don’t have to use them, but hosts who don’t often end up underpricing (or overpricing) without realising it.
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That said, tools aren’t magic. They don’t really “know” your place, the view, the layout, the kind of guests you want, or the reputation you’ve built. The sweet spot is using smart tools with a bit of human judgment, not blindly following whatever number a system spits out.
If hosting feels harder than it used to, it’s not just you. The market has changed. Learning a bit about revenue management, even at a basic level, can make a real difference to how much you earn and how stressed you feel.
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What are the solutions?
1. Learn more about revenue management and maybe use some simple tools to help
2. Adopt a revenue manager to help.
For these two options, you can read more or find help at Revenue Managers.
3. Work with a manager who does this for a living, but this means you will need to pay a booking commission.
