Inspired by pricing concepts shared by Airbnb. Adapted and expanded for landlords, Airbnb hosts, Agoda hosts, Booking.com operators, and long-term rental owners.
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Why Pricing Is More Important Than Occupancy
Many property owners focus on one question:
> "How do we get more bookings?"
A better question is:
> "How do we maximize revenue while staying competitive?"
Whether we are renting out a condo unit in Mandaluyong, managing a serviced apartment in Singapore, or offering a six-month lease to an expatriate family, pricing is one of the biggest factors affecting profitability.
A unit that is occupied 100% of the time may still earn less than a unit that is occupied 80% of the time at the right rates.
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Understanding the Three Rental Markets
Before setting prices, we should identify which market we are serving.
1. Short-Term Stays (1–30 nights)
Platforms:
Airbnb
Agoda Homes
Booking.com
VRBO
Typical Guests:
Tourists
Business travelers
Staycation guests
Medical travelers
Pricing Characteristics:
Dynamic
Changes frequently
Influenced by events and seasons
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2. Medium-Term Stays (1–6 months)
Typical Guests:
Digital nomads
Overseas workers
Project-based employees
Families waiting for home renovations
Pricing Characteristics:
Slight discount compared to nightly stays
Stable occupancy
Lower cleaning and turnover costs
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3. Long-Term Leases (6–12 months or more)
Typical Guests:
Local residents
Expatriates
Students
Corporate tenants
Pricing Characteristics:
Fixed monthly rent
Lower vacancy risk
Less operational effort
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The Five Factors That Should Influence Pricing
1. Supply and Demand
The most important factor.
Ask:
How many similar units are available?
Is demand increasing?
Are nearby hotels fully booked?
Example:
If Taylor Swift, Coldplay, or major conventions are in town, demand may spike dramatically.
Many hosts lose revenue by keeping rates unchanged during high-demand periods.
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2. Seasonality
Every location has predictable patterns.
Philippines Example
High Demand:
December
Holy Week
Long weekends
School holidays
Lower Demand:
Rainy months
Examination periods
Weeks after major holidays
Singapore Example
High Demand:
F1 Season
IT exhibitions
School holidays
Chinese New Year
Track historical occupancy and adjust accordingly.
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3. Length of Stay
Longer stays reduce operational costs.
Benefits:
Fewer check-ins
Less cleaning
Lower wear and tear
Sample Discount Structure:
Stay Length Suggested Discount
7 nights 5%
14 nights 10%
30 nights 15%
3 months 20%
6 months Negotiable
The objective is not simply to give discounts but to reduce vacancy risk.
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4. Competition
Regularly monitor:
Airbnb listings
Agoda Homes
Booking.com
Facebook Marketplace
PropertyGuru
Lamudi
Compare:
Size
Amenities
Reviews
Location
Parking
Internet speed
A unit beside Shangri-La Plaza may command a premium over similar units several blocks away.
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5. Value Added Features
Many owners underestimate value.
Guests often pay more for:
✅ Fast Wi-Fi
✅ Self check-in
✅ Smart locks
✅ Washer and dryer
✅ Dedicated workspace
✅ Netflix or Chromecast
✅ Good reviews
✅ Professional photography
Price should reflect value, not merely square footage.
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A Simple Pricing Framework
Consider this example:
Studio Unit Near Shangri-La
Base Nightly Rate: ₱2,000
Adjustments:
Factor Adjustment
Weekend +10%
Long Weekend +20%
Major Event +30%
Last-Minute Vacancy -10%
Peak Holiday +25%
Result:
Regular weekday: ₱2,000
Peak weekend: ₱2,600+
This small adjustment can add thousands of pesos monthly.
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Common Pricing Mistakes
Mistake #1: Setting and Forgetting
Many owners set prices once and never revisit them.
Market conditions change weekly.
Review pricing at least every two weeks.
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Mistake #2: Chasing Occupancy Only
100% occupancy often means pricing is too low.
A few vacant nights can be acceptable if overall revenue increases.
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Mistake #3: Copying Competitors Blindly
Their circumstances may differ.
They may:
Need urgent bookings
Have lower mortgage costs
Be offering discounts temporarily
Use competitor pricing as a reference, not a rule.
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Mistake #4: Ignoring Expenses
Include:
Mortgage
Association dues
Property tax
Utilities
Internet
Cleaning
Maintenance
Platform commissions
Every rate should contribute to profitability.
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Pricing for Long-Term Tenants
For landlords offering six-month or one-year contracts:
Focus on:
Stability
A reliable tenant can be worth more than a slightly higher rent.
Vacancy Cost
One vacant month can erase months of rental increases.
Tenant Quality
Good tenants:
Pay on time
Maintain the property
Stay longer
Sometimes accepting slightly lower rent can generate higher annual returns.
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Agoda, Airbnb, Booking.com, or Direct Booking?
Each platform attracts different guests.
Platform Strength
Airbnb Leisure travelers
Agoda Asian market reach
Booking.com Global hotel-style audience
Direct Booking Lower commissions
Facebook Local inquiries
Many successful operators use multiple channels simultaneously.
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Final Thoughts
Pricing is not a one-time decision. It is an ongoing strategy.
The goal is to balance:
Occupancy
Revenue
Guest quality
Operational effort
Long-term profitability
Whether we are hosting nightly guests through Airbnb, welcoming Agoda travelers, or leasing a property for one year, thoughtful pricing decisions can significantly improve returns without spending more on marketing.
A well-priced property is often more profitable than a fully occupied one.
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Credit
This article was inspired by pricing strategy concepts shared by Airbnb in their Host Resources:
"Setting Your Pricing Strategy" – Airbnb Host Resources
Source: https://www.airbnb.com.sg/resources/hosting-homes/a/setting-your-pricing-strategy-15
This article is an independent adaptation and expansion intended for educational purposes, covering broader applications for landlords, co-hosts, Agoda hosts, and long-term rental operators.
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