This article was shared with us by Airbnb, and it is packed with valuable insights that are too good not to share!
As we enter the low season in South Africa, it’s important to stay competitive within the market. Therefore, competitive pricing during the low season is crucial for hosts. Here are 3 reasons why:
- Firstly, it aligns with market demand, ensuring that the prices reflect the fluctuating interest in accommodations during different periods of the year. This is particularly important during the low season when overall demand may decrease. By adjusting your prices competitively, you can attract guests who are looking for value-for-money stays.
- Secondly, competitive pricing can help you maintain a steady stream of bookings throughout the year, including during the low season. This can contribute to a more stable income.
- Lastly, competitive pricing can enhance the visibility of listings in search results, as guests often filter options based on price. Therefore, a competitive pricing strategy can increase the chances of a listing being noticed and booked, even during off-peak periods.
I’d like to share some market data to help you best optimise your listings according to the various regions within South Africa.
Market Data for South Africa
> Demand is lower for April, higher in May and higher in June when compared to last year.
> For April, May and June, guests are booking on average 20% lower than the listed price.
> Guests are booking 2-7 and 8-30 days and 2-4 months in advance and same day bookings.
> Guests are staying an average of 2-6 nights, followed by 1 night stays.
> Supply has increased by 14% since last year March.
Market Data for Cape Town
> Demand is lower for April, higher in May and higher in June when compared to last year.
> For April, May and June, guests are booking on average 37% lower than the listed price.
> Guests are booking 2-7 and 8-30 days in advance.
> Guests are staying an average of 2-6 nights, followed by 1 nights stays and 7-27 night stays.
> Supply has increased by 14% since last year March.
Market Data for Durban
> Demand is lower for April, higher in May and higher in June when compared to last year.
> For April, May and June, guests are booking on average 22% lower than the listed price.
> Guests are booking 2-7, 8-30 days in advance and same day bookings.
> Guests are staying an average of 2-6 nights, followed by 1 nights stays.
> Supply has increased by 13% since last year March.
Market Data for Johannesburg
> Demand is higher for April, higher in May and higher in June when compared to last year.
> For April, May and June, guests are booking on average 28% lower than the listed price.
> Guests are booking 2-7 and 8-30 days in advance and same day bookings
> Guests are staying an average of 2-6 nights, followed by 1 nights stays.
> Supply has increased by 17% since last year March
Market Data for Pretoria
> Demand is higher for April, higher in May and higher in June when compared to last year.
> For April, May and June, guests are booking on average 16% lower than the listed price.
> Guests are booking 2-7 and 8-30 days in advance and same day bookings
> Guests are staying an average of 2-6 nights, followed by 1 night stays.
> Supply has increased by 16% since last year March
Market Data for Knysna
> Demand is lower for April, lower in May and higher in June when compared to last year.
> For April, May and June, guests are booking on average 31% lower than the listed price.
> Guests are booking 2-7 and 8-30 days and 2-4 months in advance.
> Guests are staying an average of 2-6 nights, followed by 1 night stays.
> Supply has increased by 8% since last year March
Understanding what your guests pay can help you offer the best value and support your earnings goals. Their total price includes your nightly price, any additional fees you set (for cleaning, extra guests, or pets), Airbnb’s service fees, and taxes.
Competitive pricing can help your listing stand out and rank higher in search results. The algorithm prioritises total price and the quality of a listing compared to similar listings nearby.
Some costs you’re including in your price may not be obvious to guests. Do you offer extras, such as a full breakfast, luxury bath products or streaming services? Make that clear in your listing description to help guests find value in your price.
(Source Airbnb.co.za)