At a fixed price you miss demand and get empty when there's no demand. The dynamic price puts a fee at every night and the microprices also check nights free during the day. In our illustrative example, the same house goes from 26.400 € to 32.400 € every year: 20 nights more sold and 15 € more per half night.
Tres formas de poner precio
- Fixed price (static). A fare for most of the year, perhaps with a weekend or summer supplement. Easy to manage but demand-blind.
- A dynamic price. Each night has its own fare according to season, day of the week, events, advance and what the houses that compete with yours do. It usually recalculates once a day.
- Dynamic + microprices. Part of the dynamic price and, at nights that are still free, does small revisions during the day: up, down or maintain a few euros, always with limits. We explain that in detail at What are microprices?.
One week, three results
Imagine a house in the saw a week from fall. with Fixed price a 120 €, el lunes, el martes y el jueves se quedan libres (para ese día, 120 € es caro) y el viernes, el sábado y el domingo se venden enseguida… demasiado baratos. Resultado: 4 noches vendidas y 480 €.
with dynamic price, el martes baja a 92 € y se vende, el sábado sube a 165 € y también se vende. Solo el lunes queda libre: 6 noches y 732 €.
with microprices, el lunes, que seguía libre por la tarde, baja 2 € y se vende; el viernes y el sábado, con demanda, suben unos euros más durante el día. Las 7 noches vendidas: 841 €.
Can you see them in motion at our dynamic prices and microprices.
The full year
| Model | Night's been sold | Average price | Annual income |
|---|---|---|---|
| Fixed price | 220 | 120 € | 26.400 € |
| Dynamic price | 234 | 132 € | 30.888 € |
| Dynamic + microprices | 240 | 135 € | 32.400 € |
The improvement comes from Two levers to be separated:
- More nights to be sold. From fixed to dynamic, 14 nights more to 120 € are 1.680 €. From dynamic to Bliss, 6 nights more to 132 € are 792 €.
- Best price a night. From fixed to dynamic, 12 € more than half at 234 nights are 2.808 €. From dynamic to Bliss, 3 € more at 240 nights are 720 €.
Overall, + 6.000 € a year with the same house, same photos and same announcement. They are figures from an illustrative example, and they are not a measured result: each house starts from a different point.
Why the fixed price loses money
- He's selling cheap what's best. The high demand nights (bridges, summer, events) are first booked, often months in advance and at the usual price.
- He keeps his nights empty. A Tuesday of November at a Saturday price isn't selling. An empty night doesn't come back.
- He doesn't react. When a concert or fair is advertised, the first to be booked takes nights at yesterday's price.
What's necessary for the dynamic to work
- A well-calculated minimum pricewith costs, and with the production and production of taxes.
- Minimum conditions by dateTo avoid blocking a bridge with a one-night reservation.
- Calendar of events and seasons from your area, but not just national ones.
- Measurement: what prices are published and what nights are reserved to correct rules that do not work.
- Human criterion. The tools (PriceLabs, Beyond, the smart price of Airbnb) help but have to be configured and revised. We have been told about this in our guide to dynamic training for holiday rental.
What if my place's about full?
A very high occupation is usually a sign of low prices, but not success. If you sell every night, you could probably sell the most demand more expensive. The goal isn't to fill the calendar at any price but to maximize what the house enters.
Feasibility and dynamic price questions
What's the dynamic price for holiday rental?
That's to put a different rate to every night as required: season, day of week, events, advance and competition. He goes up and down and down and down and down.
How much more with dynamic price?
It depends on the house and the starting point. In our illustrative example, the same housing goes from 26.400 € to 30.888 € a year with dynamic price and to 32.400 € with microprices.
What's the difference between dynamic and microprice prices?
The dynamic price sets the fare for each night, normally once a day. The microprices check at day nights that are still free with small steps and boundaries.
Do dynamic prices always lower prices?
No. He goes up at demand and goes down only when it takes to sell a night that, otherwise, will be empty, always above a minimum.
Can I do this with the smart price of Airbnb?
It's a starting point but only affects Airbnb and gives little control about minimum, event and minimum stay. If you sell on several channels, a tool or manager should coordinate them.
Keep reading
Figures from an illustrative example (a housing, 365 nights available): they are neither a measured result nor a foresight for your housing. Gross housing income, with no expenses, fees and taxes.
How much could your house gain with a dynamic price?
We studied your housing with its market and its costs and we told you what price and strategy would make sense without promising a generic result.