Beyond Pricing takes a look at occupancy in two primary Australian markets, Sydney and Melbourne, to show how day of week, seasonality, and local events effect the pricing strategy for Airbnbs.

1. Beyond Pricing

2. 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 Airsorted, 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
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Beyond Pricing

3. What is Dynamic Pricing?
Changing your price based
on supply and demand
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4. Why is this important?
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Because Demand Changes. A Lot.

5. https://plot.ly/~beyondpricing/707/australia-­‐airbnb-­‐occupancy-­‐2014/

6. As Demand Changes, So Do Prices
Price
Rooms Booked
High Season
Low Season
$200
$150
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7. What Happens When You Don’t Vary
Your Prices
Host #3
Host #2
Host #1
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!$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

8. 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
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9. 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
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10. 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
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11. 1. Seasonality
2. Day of Week
3. Events
3 Biggest Factors Driving Demand
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12. Seasonality is Different in Every City
ChangeinDemand
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-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'

13. Seasonality Also Differs in Neighborhoods
of the Same City
ChangeinDemand
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!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%

14. Seasonality Also Differs in Neighborhoods
of the Same City
ChangeinDemand
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!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%
San%Diego:%%Mission%Beach%

15. ChangeinDemand
Day of Week Variations Are Different in
Every City
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!20%%
!15%%
!10%%
!5%%
0%%
5%%
10%%
15%%
20%%
25%%
Sun% Mon% Tue% Wed% Thu% Fri% Sat%
Madrid%
SF%
Mountain%View%

16. ChangeinDemand
Toronto Day of Week Changes
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17. Events Can Have Big Impacts on Demand
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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
organ
H
ealthcare
G
D
C
C
isco
LIVE
G
oogle
I/O
O
utsidelands
D
ream
force
O
racle
O
penw
orld
AmericanSociety
ofHematology
Occupancy

18. Event Impact is Highly Local
VS
Event Location X
Hotel CenterX
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19. So What Happened with Pan Am
Games?
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20. So What Happened with Pan Am
Games?
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A: Too much extra supply, too little demand = low prices
Occupancy
Caribana
Pan
Am
Games

21. How Beyond Pricing Works
We find the right average price for your place.
Then, we change that price based on
supply and demand.
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Beyond Pricing

22. Are You a Motel 6 or a Marriott?
VS
VS
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23. Finding the Right Average Price for Your
Place is Tough
Williamsburg Private Bedrooms Prices
NumberofListings
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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?

24. 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
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25. What Matters is How Quickly You Book
Versus the Average
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26. We then vary your average nightly rate
based on changes in demand
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$-
$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

27. It’s Important to Know How Far in
Advance People BookPercentofBookings
Days Out @beyondpricing
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0%#
10%#
20%#
30%#
40%#
50%#
60%#
70%#
80%#
90%#
100%#
1# 31# 61# 91# 121# 151# 181# 211# 241# 271# 301# 331#

28. 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”
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29. Get Started with Beyond Pricing
1. Sign-up and link your Airbnb account (use code
AuzSlideshare 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
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https://beyondpricing.com/