Smart Airbnb Pricing Strategy: How to Set Rates That Actually Work

Marifil Limpahan
Jun 12
3 min read

The Two Airbnb Pricing Strategies Every Host Needs to Master

If you’re just getting started as an Airbnb host or even if you’ve been doing it for a while but still struggle with staying profitable pricing can feel like a mystery.

Set your price too high? You risk being overlooked.Too low? You might stay booked, but your bank account won’t thank you.

At BNB Guardians, we’ve helped busy professionals launch and scale profitable Airbnb businesses. One of the biggest levers we teach in our Airbnb coaching program is using a Smart Airbnb Pricing Strategy, and how to do it right from Day 1 so you’re not leaving money on the table.

In this blog, we’ll walk you through the two foundational Airbnb pricing strategies you need to know to stay competitive and profitable.

Strategy 1: Know Your Numbers (Cost + Profit)

Before anything else, get clear on this: you’re running a business. That means your price needs to do two things:

Cover your costs
Generate profit

Your costs might include:

Rent or mortgage
Utilities
Cleaning fees
Supplies and restocking
Airbnb service fees
Taxes and insurance

Don’t forget to factor in your time, too. Managing guest messages, updating your calendar, and handling turnovers takes real effort. At BNB Guardians, we often see hosts undercharging simply because they don’t treat their time as part of the equation.

We teach our clients to use Airbnb pricing as a tool for freedom, not a trap that keeps them working for pennies. Once you understand your expenses and profit goals, you’ll know the minimum you can charge to make it worth your while.

Strategy 2: Analyze the Market (Comparables)

Next, look outward: what are comparable listings in your area charging?

Pull up Airbnb and search for places similar to yours in:

Location
Size
Amenities
Style and vibe

Check nightly rates, occupancy, and what’s included. This is part of Airbnb optimization knowing how your listing stacks up and using that data to stay competitive.

Don’t be afraid to experiment with:

Dynamic pricing tools (like PriceLabs or Beyond)
Weekly and monthly discounts to attract longer stays
Special offers for last-minute bookings

If you're new and building your reviews, it’s OK to price slightly below the market to build traction. But once you’ve got momentum, adjust accordingly. Airbnb SEO rewards hosts with consistent bookings, and competitive pricing is part of that formula.

Bonus Tip: Don’t Trust Airbnb’s Suggested Pricing Blindly

Yes, Airbnb offers a “recommended price” for your listing, but don’t take it at face value.

It’s often conservative and designed to maximize booking volume (not necessarily your profits). Inside our Airbnb Super Host Academy, we walk hosts through how to use these suggestions as a starting point, not a rule.

Keep Testing, Keep Tweaking: Smart Airbnb Pricing Strategy

One of the best things about Airbnb is that your pricing isn’t locked in. You can, and should adjust regularly based on:

Seasonality
Local events
Market trends
Your calendar availability
Guest demand

Make this part of your Airbnb strategy, not an afterthought. Hosts who check in on pricing weekly often see better performance than those who “set it and forget it.”

Final Thoughts: Your Price = Your Power

To recap:

Know your numbers: always cover costs and aim for profit
Study the market: use comps to stay competitive
Adjust as needed: pricing is flexible and powerful

Remember, Airbnb pricing isn’t just about filling your calendar, it’s about building a sustainable income stream that gives you more freedom, not more stress.