Hi, I’m Igor, the founder of Revolvio. My mission is simple: helping hosts like you unlock the full potential of your Airbnb properties. If you’ve ever wondered how to get better results without spending endless hours adjusting your pricing or stressing over bookings, I have good news for you—boosting your Airbnb income doesn’t have to be complicated or time-consuming.
Prior to founding Revolvio in 2019, I was a revenue manager at Starwood and Marriott. My universe was the world of pricing strategy and market trends, where I saw firsthand the amazing impact that smart, strategic pricing can have. The truth is that the same concepts that you use in hotels can be used successfully in your Airbnb as well. And no, you don't need an MBA in hospitality or volunteer hours upon volunteer hours to make this vision a reality. All you need is a smart plan, and I am here to guide you through it.
This is one of the first articles I’ll be publishing to help you better understand just how crucial revenue management is for short-term rentals, along with some of the best practices you can start applying today. So keep an eye on future posts on LinkedIn or in our blog section.
What Is Revenue Management (and Why Should You Care)?
Let me break it down for you: revenue management is all about setting the right price at the right time to maximize your earnings while keeping your property booked.
Why does it matter? It matters because demand changes. Certain weekends and certain times of the year are busy, and you can charge a premium rate. But during off-peak times, you might have to fluctuate your prices to attract visitors.
Think of it this way: if you overprice it, your inventory will be vacant. Or, if you underprice it, you'll miss out on what can be gained. The middle point is the sweet spot, and that's where the art of revenue management comes in.
Imagine this: it’s the middle of summer, and your city is bustling with tourists. This is the perfect time to increase your rates because demand is high, and guests expect to pay a premium. Now, fast forward to a quiet Tuesday in February. If your rates are still set at summer levels, you’ll likely lose bookings to other listings that are more appropriately priced for the season.
The idea is simple: stay flexible and adjust your pricing to match the natural ups and downs of your market.
The Problem with Fixed Rates and Smart Pricing
When I initially began assisting hosts on Airbnb, I saw that most hosts employed fixed prices or Airbnb's Smart Pricing feature. Although these options are convenient to control, they are not necessarily the optimal method of maximizing profit.
Let me explain why:
Flat rates don’t reflect reality. If you’re charging the same price year-round, you’re not taking advantage of busy seasons, holidays, or local events when guests are willing to pay more. Similarly, during slow times, flat rates might be too high to attract bookings.
Smart Pricing is a highly conservative strategy. Airbnb's algorithm favors bookings, so it will recommend lower prices to book your space. This strategy can fill your calendar with bookings but may not maximize your revenue.
For example, a host I was working with had their home for $120 nightly year-round. They were getting reservations, but upon researching local market prices, we saw that similar listings were between $200 and $250 on prime dates like summer weekends. By raising their rates on those peak dates, they could earn significantly more without making any other changes to their listing.
In one of our previous articles, we discussed some of the fundamental strategies to boost your Airbnb revenue.
Timing Is Key
One of the concepts that has stuck with me from my time at Marriott is the idea that timing is everything when it comes to pricing. Individuals book their stays at different times—some are planners who book their vacations months in advance, while others are last-minute travelers who are looking for a weekend escape. Your pricing then needs to change to reflect these differences in booking habits.
For example:
Guests who book way ahead of time (e.g., 3–6 months ahead of time) tend to be willing to pay a premium, particularly if they are reserving a stay for a vacation or event.
Last-minute visitors, however, will seek bargains. If your place is not reserved a couple of days before check-in, the gap can be bridged with a slight discount.
Look at your own booking history to discover the patterns that exist. Do you see that most of your guests make advance reservations, or is there a pattern for last-minute bookings? Once you understand the type of booking window that you have, you can set prices accordingly (all this information is available on Airbnb via Insights, for example).
With Revolvio’s Dynamic Pricing, we help to adjust rates to match market fluctuations, ensuring your property is always competitively priced and increasing your profitability.
Tools can be helpful, but they are not the answer
Let's take a quick break to discuss pricing tools. PriceLabs, Beyond Pricing, and AirDNA are excellent tools for automating the adjustments to your daily rates. They examine local data—such as demand, competitor rates, and market trends—and recommend prices based on what's happening right now in your market.
Here’s the thing: tools are only as effective as the person using them. They’re excellent for managing the fundamentals, but they lack the firsthand knowledge and insight you have about your property.
Think about this:
Does your listing have something special, like a rooftop patio or a cozy fireplace, that makes it stand out from the rest? Price tools can't always see that added value.
Is there a large event coming to your city, such as a festival, sports event, or convention? Tools may overlook it or adjust your rates too late.
This is exactly why I always recommend combining tools with a hands-on approach. Let the tools handle your daily pricing adjustments, but stay mindful of the bigger picture and make manual tweaks when necessary. Striking this balance between automation and personal expertise is what sets great hosts apart from the rest.
Seasonal and special event adjustments
Seasonality and events within your area significantly affect demand, so your pricing needs to reflect this fluctuation. There will be certain months that will experience more activity than others, of course, and sometimes when one event—a marathon or a concert, for example—drives demand through the roof.
Let's express this in positive terms:
When the peak seasons are peak, like holidays or summer breaks, travelers expect to pay more. Don't be afraid to increase your prices then; that's what the market will dictate. But in the slow months, you might have to lower your prices a bit to get bookings. Offering discounts for longer stays, weekly or monthly, can also allow you to earn consistent revenue in the slow months.
Being proactive for local events can really pay off. If you know a big conference or festival is coming up, consider adjusting your rates ahead of time to capitalize on the higher demand.
Final Thoughts
Revenue management does not have to be intimidating. At its most basic, it is really about making smart price decisions—being adaptable, paying attention to demand, and utilizing tools and information to guide your decisions. Through this, you can maximize your Airbnb earnings without leaving so much stress behind.
If you don't know where to start or are simply overwhelmed, I'm here to help. Here at Revolvio, we work with hosts like yourself to create personalized pricing packages that speak directly to you. Whether you're hosting a single property or multiple, we can take the guesswork out of pricing and put you on the road to success.
So, how are you pricing today? Are you pricing things manually or using tools? I'd love to get some feedback on what's working for you—let me know in the comments or just send us an email at info@revolvio.com.