Choosing a Pricing Model When Working with Airbnb
How you set your rates on Airbnb directly affects your visibility and the clarity guests receive when booking. With the Channel PRO integration, you can now choose between two pricing models. Each has its own advantages and limitations, so it's important to pick the one that best fits your strategy and the experience you want to offer.
Summary
Setting your rates smartly is key to maximizing your bookings, improving your ranking in search results, and providing a clear and reliable experience for your guests.
Thanks to the Channel PRO integration, you now have the option to select between two different pricing models: the traditional nightly rate and the more flexible length-of-stay-based pricing.
Each model has its own advantages, limitations, and behaviors regarding discounts, surcharges, recalculations, and how prices are displayed on Airbnb. Choosing the right one will depend on your pricing strategy and the level of customization you need.
Keep reading to find out which model is best for your property! If you have any questions at the end, our support team is here to help you evaluate and make the switch if you wish.
The Two Available Models
1. Nightly Rate
The booking price is calculated per night.
2. Length-of-Stay-Based Pricing
Here, the final amount is calculated based on the number of nights booked. This model takes into account three different parameters: price, occupancy rule, and length of stay.
This is the model we sync by default. So if you haven't seen this before, or haven't requested it, you're most likely using this model.
Nightly Rate | Length-of-Stay-Based Pricing |
Changes to the number of guests in an existing booking will recalculate the price. | The price will not be recalculated if a guest changes the number of occupants in an existing booking. |
The extra person fee** will be synced from the amount set in Channel PRO (one price for all seasons). This field in the property configuration in Channel PRO is called "Additional Guest Fee". | The extra person fee will be synced from the rate settings in the VRMS and can have different prices for each season (if set up that way). |
Only simple surcharges are synced. | Both simple surcharges and short-term rental surcharges are synced. |
Long-term rental discounts will be shown on the Airbnb listing with the new price. For example, the base price will be crossed out and the new discounted amount will be shown. (only if set as bookings longer than X nights) | Only the final price will be shown to the guest, as the price will already include any discounts or surcharges. All compatible discounts and surcharges will be taken into account. |
Changes to the number of nights booked will respect the exact nightly rate. | Changes to the stay dates will not recalculate an exact amount. |
The nightly rate will be shown in the Airbnb extranet multi-calendar. | Prices shown in the multi-calendar will be inaccurate, as Airbnb cannot know the exact nightly rate. |
There is no limit to the number of prices sent and long stays can be booked. | A maximum of 47 prices per stay can be sent*. |
* The number of nights bookable in the Airbnb calendar will depend on the minimum stay set in the VRMS. For example, if a minimum stay of 1 night is set, guests can book up to 47 nights. However, a minimum stay of 7 nights will allow guests to book up to 54 nights, since the first allowed rate will start from 7 nights instead of one.
** When using the Nightly Rate model, the configured price increase (%) will also apply to the extra person fee.
Best Practices
Know your needs: if you apply highly customized discounts or complex surcharges, the length-of-stay-based model gives you more flexibility.
Once you decide which model best suits your business, please contact us to make the change. You can also write to us if you're unsure which model you're currently using.
Common Mistakes
Requesting a model change without reviewing discounts and surcharges: they may stop applying as you expect.
Relying on the Airbnb multi-calendar as a reference: if you use the length-of-stay-based model, the prices shown there are not always accurate.
It's best to verify prices by making test bookings.Forgetting the minimum stay: this setting directly affects the maximum number of nights guests can book if you use the length-of-stay-based pricing model.
Quick Checklist
Before choosing one model or the other:
Have I set up surcharges and discounts correctly in the VRMS or Channel PRO?
Do I prefer to show prices without necessarily showing that there are discounts affecting them? Or do I prefer to show original vs. new prices with discounts that can be synced as offers?
Additional Resources
Frequently Asked Questions
Can I change the pricing model at any time?
Yes, you can request the change from the support team, but always review your surcharges and discounts after the change to make sure they're applied as expected.
Why does the Airbnb multi-calendar show different prices?
Because with the length-of-stay-based model, the nightly price is an approximate calculation. Ultimately, the correct price is shown on the listing to customers.
What is the maximum number of nights that can be booked?
With the length-of-stay-based model, it depends on the minimum nights set in the VRMS. With a 1-night minimum → 47 nights; with 7 nights → 54 nights.
Which model is best if I manage several seasons with very different rates?
The nightly rate model usually gives you more control and accuracy in how prices are displayed.