What is an Airbnb revenue manager, and what do they do?
An Airbnb revenue manager is responsible for maximizing occupancy and revenue for a short-term rental listing. They accomplish this through several means. The process usually begins with a detailed review of the listing setup and optimizing the listing ;looking for potential "birth defects" or settings that may have changed over time, to ensure that the listing has the best possibility to show highest in Airbnb search rank - that starts with a listing optimization.
The next step is deploying a third-party dynamic pricing tool, such as PriceLabs, and optimizing the settings... things like base price, minimum night stays, weekends, conjoining weekends, and even maximum price. Sometimes maximum price can be set too high.
Then the real magic happens in the day-to-day operations. We often hear pricing softwares aren't just set it and forget it. No one ever finishes that sentence. The part not to forget is that while the softwares do an excellent job, they really only get you about eighty percent of the way there in terms of occupancy. It takes a human intervention to look at the overall occupancy of the listing and make surgical adjustments to near-term vacancies to ensure the highest occupancy maintaining as much revenue as possible.
Airbnb revenue management is both an art and a science. With our re-revenue management service, we are physically touching that account two to three times per week, and in that session we may be making multiple price adjustments and testing that in the market, so it's not just a single touch. It may be spending multiple adjustments within that day's work and coming back to the listing two to three times a week to look at its short-term occupancy.
We are also looking out into the future to make sure that it's not pacing too quickly to control for base price and maximizing the revenue. We might be adding price premiums if we're pacing quickly, going into a summer month. We don't want to sell those weekends too quickly, and so we make strategic price increases as well as decreases based on market supply and demand.
How Airbnb Revenue Managers Charge Their Clients
That sounds awesome but expensive. How do Airbnb revenue managers charge their clients?
There are many different revenue management services with a variety of payment options. I sometimes see "call us and we'll work it outand find a number," which always makes me a little suspicious that the price may go up based on the opportunity. Some Airbnb revenue management companies charge a percentage of gross to align the goals of the company with the client. But again, I think that at the higher end, that becomes a little onerous on the client.
With Airbnb Revenue Management by Host Coast, we are very transparent. We charge a three hundred dollar per month fixed fee. There are no additional onboarding charges. There are no additional hidden charges, and it's a month-to-month subscription. As long as we are adding value to you and your listing, we hope that you'll continue with the service, but it's a cancel anytime agreement.
The Difference Between Host Coach Airbnb Revenue Management and Other Companies
What is the difference between Host Coach Airbnb revenue management and other Airbnb revenue management companies?
I believe the biggest difference is not just in pricing, but is in value. With our revenue management service, we're not just focused on your numbers, we're additionally focused on you as a host, and how to help you become a better host, provide better hospitality, use tools and technologies and keep up with the constant STR industry evolution and learning. Airbnb is constantly making changes, like changing to split fees versus single fees and staying on top of the industry to communicate that back to our host to help them become better, more efficient hosts is critical to their success. We also provide coaching to help clients answer guest questions, handle difficult situations, grow thier portfolio, and maximize financial returns through things like cost segregation.
If we help you book one extra night that covers our $300 fee -- paying for your management for the month, so it's a slam dunk.
How do you charge clients who own multiple short-term rentals?
We offer discounts for people with multiple short-term rentals. They depend on the size, and complexity of the individual listings. So a client with three bedrooms in their basement is different than a client with three, million-dollar cabins spread across the United States. That is why they are handled on a case-by-case basis.
What Clients Love About Working with Airbnb Revenue Management by Host Coach
What specifically do clients like about working with you as a revenue manager?
I think they really appreciate the return of time and peace of mind... that they're not having to worry on Thursday night after work whether they've checked their listing(s) and made changes to their pricing. Client value the removal of the headache and worry of, "Am I maximizing my revenue? Am I being a good steward of this property?" or "Am I leaving money on the table?" Knowing our service is handling that for them gives them the peace of mind that the revenue is being maximized, and they don't have to worry about it, and they can focus on other things like spending time with their family, traveling, being a better host, or growing their portfolio.
On the flip side, what do you enjoy most about working with your revenue management clients?
Well, first I just love the numbers. I love being able to make small corrections that make big differences in a listing's search placement, resulting then in its increased occupancy and the increased revenue for the client. I also get joy out of seeing clients be able to relax and just be so happy that their investment is paying maximum dividends back to them in cash flow.
How to Work with Host Coach Airbnb Revenue Management
How does someone get started in the Host Coach revenue management process?
It's easy! Reach out to us via our Calendly link and schedule a free 30-minute discovery call to see how we can align with your goals.
How fast from that initial conversation can someone go from talking to you to actually having you as a revenue manager?
I've taken over managment the same day plenty of times. Recently, I jumped right into an emergency situation. The client was concerned they were going to lose their family home, and moved into a small studio to be able to list their house as an Airbnb to try and generate the money needed to cover the mortgage. We were able to jump in and within 24 hours had cash flow moving in this family's direction.
Book a free 30-minute Airbnb revenue management discovery call with us today! We would love to explore what keeps you up at night and how to give you peace of mind along with increasing your Airbnb's page rank, engagement, booking velocity, and (of course) revenue.
