Rate Adjustments - What are you evaluating?

[Denis Ponder]

Good morning,

Our first 6 months of our studio (househack) being available on AirBnB & VRBO was very successful for us.  During that time, the minimum rate we charged was $50/night; $20 cleaning fee for short term stays (2 or less nights) and $40 cleaning fee for longer stays.  I want to play around with rates a bit to ensure I am maximizing my returns and income.  I have already adjusted the minimum rate to $60 and have still seen good activity, but I haven't messed with the cleaning fees.  I am considering adjusting the minimum rate up quarterly until I see a change in reservations/bookings activity.  Or, would it be better to increase the cleaning fee?  Or, get rid of the cleaning fee all together and charge a higher rate to "include" the minimal cleaning fee in that cost?

Our occupancy was pretty good, north of 85% if I remember correctly, but I can't seem to find that data as easily since the layout/format of the website changed a bit.  We currently use PriceLabs for dynamic pricing which I feel has been very beneficial for us.

I would like to hear your thoughts on how you think we can best monetize our short term rental.

For context, we are competing more in the hotel/motel space with our studio, not really in the vacation property niche.  It's a very quiet and private alternative to hotel rooms in the area with a good location.

Here is our listing:

https://www.airbnb.com/rooms/892662141612985989?guests=1&adults=1&s=67&unique_share_id=87e8ebac-4d8e-4702-b596-a8ccc287e2ba

Thanks for your time!

[John Underwood]

If your at 85% occupancy I bet your leaving money on the table.

If you tweak your prices up till occupancy start to drop a little you'll likely make more money with less work.

I would see what other people in your area are charging for cleaning fees on a similar property and adjust accordingly.