Hello. Welcome back to another great episode. My name is Sarah Karakaian.

I'm Annette Grant, and together we are Thanks for Visiting.

Let's start this episode like we do each and every week, and then it's featuring one of you our incredible listeners who are heading on over to strshare.com so that we have all of your info about your short term rental, and we can share you here on the podcast. Annette, who are we sharing this week?

This week we are sharing @thecedarshaliburton, again at the Cedars C-E-D-A-R-S, Halliburton and it, this lovely property is hosted by Peter and Ashley. I encourage you to please go to their Instagram. I love their very first pinned post is a picture of them, and truly it is a quick bio of who they are, when they started, why they started, and how you can participate in their amazing properties. So it's a really nice masterclass on being succinct in your messaging, letting people know your why, who you are, what you do, and how they can get closer to you in a very, very quick way, and I just think they did an amazing job there. So if you're looking for inspiration, go to their IG. And then the other part I want you to get inspired by is they have really taken. Their property to the next level. They, they're, they have land, so they've built multiple, um, units on this land and they have incorporated a whole wellness experience. So they have, uh, yoga studio, they have, um, platforms over by the water, so you can do outdoor yoga. And so I want you to go to their Instagram, but then go to their direct booking website because you can see how they have chosen to center themselves around wellness and make that a part of their brand. So I really want you to sit down, take some time, go through like what they've done, how they've done it. Take some notes because you'll see on their website that yes, they have their properties, but then they are inviting you to maybe do a meditation getaway, a yoga getaway, a wellness getaway. They are marketing and giving you those ideas and those packages they're creating. The overall experience for the guest, and I just think they've done a really remarkable job and it's very inspiring to see what they have done with their properties.

I love when hosts think holistically about their brand, what their mission is, what kind of vibe they want their guests to experience. It is very much of a professional outlook on their entire business and it's holistic and it's just really well done. And you can tell they're in it for the long haul, which is exciting and I know that it will pay off. You know what I'm also excited about, Annette, is we are in its bootcamp time. It is booked and profitable time, and we wanna invite all of you listeners to join us for this bootcamp. It is. Five days with us. It is Annette and I live.

Yes, it is digging in, digging your heels in with your boots on, getting after it. And if you've been listening to the show, this is a way to hear us, see us, ask us questions, get connected to other hosts. It's a way to take the podcast and make it the work that can make you more profitable. Dig in for the short amount of time it is so worth investing in yourself.

Yes. And we have, you have to check it out for yourself the testimonials from the last time we did this bootcamp, we get our boot bootcampers.

Yeah, don't, yeah, don't take it from us.

We get our bootcampers results. And how much is it to join the bootcamp?

$49.

$49 for five days of training. And we can all but guarantee improving your revenue by understanding the algorithm of OTAs of Google, of the, the way a listing can convert a looker into a booker. So this, this training is not to be missed. Again, it's thanksforvisiting.com/bootcamp. Sign up now. We'd love to see you there. Alright, let's give him a little teaser and let's talk about why. We want hosts all over the world to stop lowering your rate because lowering your rate does not create demand.

You guys, say it again.

Lowering your rate does not create demand. You are all leaving so much money on the table. We're seeing it happening left and right and Annette and I are on a mission to stop it because we want hosts to make more money. And so that is what today's episode is all about, is when you say you've quote unquote tried everything we're finding out left and right that you are trying, everything is lowering your rate. And that is, and that is another reason why you need to join us for the bootcamp 'cause we will help you understand what else there is out there to try what levers you can pull, right?

We'll give you strategies that are not low in your rate and they do. Get you results. Let's get our minds right. Before we dig in to all the things we're gonna go over, little bit of economics here, supply and demand. I want. Every host to understand that demand is not based on how badly you want or you may need bookings. Demand is based on guest search behavior.

Yes.

So that demand is predicated on how many people are looking for our specific type of property during specific dates for their specific needs. We are not creating this, um, inflated demand by lower lowering our rates.

Right. Just because you lower your rate, it's not gonna get someone to. Pick up their suitcase. They're like, oh, that rate is low, so I'm just gonna like change my, my behavior that that's not how it works. Right? And demand is measured in occupancy. So if there's forecasted high occupancy in your marketplace, which those forecasts exist, and you can find it,

Which are readily available to us, which is amazing.

Yep. You can find it in your dynamic pricing software. If occupancy is going to be high, that means there is high demand, there are fewer dates that are going to be available. If forecasted occupancy is low, that means there is going to be low demand. That means there are going to be fewer bookings for all of us and more availability across the board for the marketplace. So TFE Pro tip, if no one is searching. In your marketplace for those dates, and you can call, you can look that up by looking at the pickup in your market, okay? And you can see what is that percentage of pickup in your market. And if known is currently searching, you can lower your rate as much as you want. You're not gonna somehow create demand and, and magically get booked. Right. What is gonna happen is if you have a great property that is appropriately priced, that has great reviews and you have a good marketing strategy around it, and you are showing up to whoever is searching, that is what's gonna get you booked. Okay? But when you just drop your price, 'cause you think you're gonna create some sort of demand that doesn't exist, you're just leaving money on the table 'cause the people who are shopping. Would have paid appropriately. Appropriate market rates, but you gave them a great, great, great deal for no reason at all. All right. Let's talk about why dropping your rate doesn't create demand. Dropping your rate. You know, price is not a magic switch. So just because you dropped your rate, it's not gonna, like I said before, all,

Create a flood of demand.

Correct. Like, you know what I mean? Like, they're not gonna like be searching in my area. First of all, they, there's no demand. So they're not searching in my area. So they're never even gonna know that you've lowered your rate that much, right? But price, what it is meant to do is influence conversion. Okay? But there is still a market price that is. Market appropriate for that demand type. And when you just drop your rate, 'cause you think, oh, if I'm the cheapest one on the block, it's, I'm all of a sudden going to, um, be the first one booked, then that's gonna talk about why that's not true. Uh, you have the wrong mindset around price and that's the first thing that we really wanna fix. And then also, if demand is low. You have to remember, there are fewer eyeballs on all listings, including yours Including your competitors.

Mm-hmm. And lowering your rate, it can actually hurt you.

Yeah.

We see so many hosts getting in competition with their neighbors, the, the hosts around them. A, you have no idea what someone else's financial responsibilities are. Two. If I'm looking as a guest and I see a really reduced rate, it actually sends up red flags I believe of like, why are they essentially giving away this property? Was it an accident? Is something going on so it can send up red flags to the guest? And then another thing is you might be attracting the wrong kind of guest to your home. And last but not least. You might be simply losing money and you do not have a sustainable business if your first reaction always is to lower your rate and then you're losing money on each and every reservation.

And let's dig into that. So let's say you do drop your rate because demand is low. You don't quote unquote have bookings. You're like, oh, I'll just be the most attractive one because I dropped rate. Let's say you do get booked and it has nothing to do with how inexpensive you are. Maybe it's like the perfect bed to bath ratio. Maybe you do have great reviews and this is your first like moment of. Of, uh, I don't know, your first moment of just grasping at straws to get booked, so now you've lost money because they would've booked you anyway. At a fair rate that that's how you're losing money. They would have booked you anyway. If you've got a great listing, it is a low demand period, but you're being served up first and you're, and let's say you're not even looking at pickup, whether people are shopping. If you would just have waited a little bit, you know, you would have. You would've gotten picked up, you're losing money that way. Also, when it comes to red flags, I was just shopping for a short term rental in Nashville and then I are going there for some for work, and I was in the same area and I was looking at op, I was looking at listings and there was this one, the same date ranges, same bed to bath ratio. It was like $200 cheaper than, no total.

Oh, okay.

For than the other. I actually was like. So maybe don't pay their cleaners like a great fee. Mm-hmm. And like then I don't know what kind of clean they actually have done, or like, do they even use good products when they're wash. This is truly what's going through my head. I'm not just saying this to influence you. Um, on this content. So I usually go for the middle of the road, slightly higher end because I'd like the person I stay with to have more resources to make sure I have a really great clean, well stock stay.

And I just want you to put yourself in the traveler's shoes. And I think about when you go on a trip and let's say you are booking a hotel, is your first inclination when you book a hotel to get the cheapest hotel? Probably not. So think about that as you are pricing your short-term rental.

And here's the thing, like let's say it is your first instinct and you, but if, if your property isn't an economic stay. Like maybe that is your, if, if that is your, uh, property type to like be the most economical, stay possible, then you know the kind of guests that you're trying to attract. And we'll talk about that a little later here. But if it's not like why, and you're more of a midscale to upscale property again, like there is a guest type for you and you still wanna attract that guest type, right? I do wanna say one other thing before we move on, and it is about. Your booking window, right? That average amount of time in that season where the timeframe from when a guest books to when they arrive, and what we see hosts doing also is forget about the idea of dropping your rate because you think all of a sudden it's gonna make someone book you. Hosts are lowering their rate or dropping their rate when they're still very much in their booking window.

Mm-hmm.

They don't know what their booking window is.

Exactly. They actually can hurt them too, just by not knowing. The simple thing again, that your dynamic pricing software, your PMS will help you.

Yes.

Know on a regular basis because it changes.

It does change, and so you have to stay on top of it. So again, just to recap. Make sure you're not considering adjusting your price before your booking window is even closed. Right. That average time to when a guest finds you and, and, and wants to book between then and when they wanna arrive, that is the booking window. And then of course two thinking that if you drop your rate, you're all of a sudden going to create demand. When demand is already low, everyone in your market knows it. They're pricing appropriately. There is no reason for you to go below that market rate that everyone else is charging 'cause you're just leaving money on the table. We see this in our hosting business Mastery. Where one of our members shows up on a call with us or it's in our private group, and they're like, Ugh, I've tried everything and I can't,

But actually we do not let them do that for very long because we do not take that as an answer.

We don't.

It's unacceptable.

They do it.

They do it, and it's unacceptable though.

Right at the beginning of their time with us, they, they kind of have this release of negative energy and they just say, I've tried everything. I'm lowering my rate as low as it can go, and I'm still not getting bookings. And then we dig in with them and we're like, let's quantify that. What does it mean? You've tried everything. And they're like, well, everyone else is getting booked. And we're like, show us what, who else is getting booked and at what rates? Right. And so the more we dig, the more they have not tried everything. The more they want the easy button, which we get that like, believe me, like we have to check ourselves too when it comes to, uh being in slower periods or maybe trailing behind what we were hoping to do for that time period. I don't wanna act like we've got our act together at all times, but. Annette and I are very lucky where she can check me and I can check her in those moments and say, let's quantify it. What have we actually done that actually moves the needles and we wanna help you here in that moment. So it's not going into your dynamic pricing software and lowering your rate to as low as you can go. That is not trying everything. Here is what fighting for your business and trying everything looks like.

You are gonna, first, you're gonna look and audit your listing. And every single section of your listing. Next, you're gonna wanna take a look at your amenities or lack thereof. What is going on with your property? How can you improve it? You're also gonna wanna shop your competition. When is the last time you looked at your comp set? When is the last time you've really done a review? There are, there are properties constantly coming and going. Look at them, look at their reviews. So those are the first three things you wanna do.

Other things that could be off are your messaging and your positioning of your property. There are so many ways that you can analyze. The way you're speaking to potential guests, to your current guests, and so maybe that's reflecting in less than great reviews. The positioning when it comes to the positioning, that leads to our next point of maybe you are attracting the wrong kind of guest. It's not the great fit, or you're not talking to them like they want to be talking to. Maybe you're not showing up where they're searching most, right? All of these things that they're not on, if they're not lined up. You could be missing whatever opportunity there is in the marketplace. And then last but not least, and this is a big one, is calendar management. Like a lot of you don't have your eyes on your calendar, on the different settings on how a get you might not even be showing, you might not even be showing up. Because of the restrictions that you have put in place. You might want guests to book a certain way, but the way they're actually traveling, the way they're actually booking. Might not be what you've set up in your restrictions, and so therefore you're not even an option for them. And that actually happens a lot more than hosts realize because maybe it's something you set up when you first listed and you haven't looked at your, your calendar settings in a really long time. And so we encourage you to go back, go through everything, analyze everything that is, and that's, this is just the tip of the iceberg. There are a lot of other things that you can do to be the most attractive property. In a time when there is low demand.

We just went over several, several things that you should be doing to refresh, to audit, to be in control of your listing. The one thing we wanna offer though, is to do these one at a time. And you wanna track them. You wanna see which one is moving the needle. You wanna see how many people are looking at your listing, what your conversion rate looks like. So slow and steady wins the race here. We don't want you to go in and frantically make all of these changes because you do want to see which one is truly moving the needle.

Demand is market driven. Your response. Is business driven. So there are so many things that influence demand. But you need to know how you compete in your marketplace, because I can tell you this, the best listings are usually still the first to get booked. Even in slower time periods. So those listings that focus on really great amenities that actually move the needle for the kind of guests that wants to stay there, right? Messaging, visuals, how you sell the property online. All of those have to work. And those hosts don't have to have bottom of the barrel pricing during low demand periods because they have a solid listing that are priced appropriately for that, for that market period.

And we want you to feel like you actually can control demand. Through your own sales and marketing, right? You need to take control of that through your own direct booking site, by your own referrals, your own selling, your own retargeting guests that have stayed before. This is the work.

Your email list.

This is the important work that you can be doing versus the reactive work of simply lowering your pricing. So we want you to actually be excited. Encouraged and looking to the future of how you can increase your own demand, increase your pricing, therefore increasing your overall profitability.

Because I think if we're being honest with all of you. Everything in this episode revolves around the fact that you can't control really anything on Airbnb. You're an Airbnb's ecosystem. Right? And so therefore, you can't control demand there. But if you have your own ecosystem, if you have your own marketplace of email lists, phone numbers of people who have stayed with you, who know I can trust you, who love referring you, and this is possible for you. This is very, very possible for you. You do have to consider yourself a business owner and you do have to put in the work. But the more you can stop relying on Airbnb and taking more control over your business, the more influence you actually do have over guests coming to say 'cause let's say you do send an email out, a very powerful email with a great offer. Maybe you could con convince someone to come and stay with you.

Absolutely.

And have a staycation.

Absolutely.

Right?

Absolutely.

But we, we don't have that flexibility. We don't have that power on Airbnb. Maybe you change your title, maybe your listing description says something for that short time period, but,

Maybe run a promo and they push you out a little bit. But please, we want you to take control of your business.

Alright, so with that, I want you to remove the thought that lowering your rate is going to somehow create incredible demand to your property and stop giving away money or leaving money on the table and get more strategic with your hosting business. Right. You are a professional host. You have invested a lot of money into property. It is an asset and we need to maximize that asset and think differently about our business. With that, I am Sarah Karakaian.

I'm Annette Grant, and together we are. Thanks for visiting.