![]() Just like seasonality, this will vary from city to city and even within cities. But this demand is hyper-local, meaning it is very dependent on the specific reasons of why someone would want to stay in your neighborhood rather than the greater city. If it’s mostly business travelers, you may actually see higher demand for spaces during the week days instead of the weekends. Is your area attracting more business travelers or leisure travelers? Having an accurate assessment of the right seasonality of your peers in your area is a starting point for determining the right baseline prices throughout the year. beaches will have higher demand during summers than downtown areas). Touristy locations will have a greater disparity between the high and low tourism seasons where as more business districts will see flatter demand throughout the year.Īnd even within the same city, different neighborhoods could have very different seasonalities (e.g. The specific highs and lows for each market will be different. In the example below with San Francisco Airbnb occupancy rates in 2014, you’ll see that demand is generally much higher in the summer months from July to September compared to the winter months from December to February. The demand for Airbnb units is not constant throughout the year and in almost all markets, there will be a high and low season. The Big Three Determinants of Local Demandĭemand by guests for Airbnb units in any particular city is sensitive to three major factors: Seasonality Seriously…If you do not have dynamic pricing, you’re leaving money on the table. Within one year, San Francisco has nearly DOUBLED the amount of Airbnb units available to guests…that’s double the supply! Supply is changing mostly from having more Airbnb units being added to the markets, meaning greater competition and less pricing power over time. And boy do they change.ĭemand changes for various reasons–seasonality, special events going on, etc… What is Dynamic Airbnb Pricing?ĭynamic Airbnb pricing is simply changing the price of your Airbnb unit as the supply AND demand for Airbnb units in your market changes. Below is a quick summary of some key takeaways from our talk with Ian.
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