According to a study published on Priceonomics, it’s 21% cheaper to rent a whole apartment on AirBnB than to stay in a hotel. It’s also 49% cheaper to rent a private room on AirBnB than pay for a suite in a hotel. Despite the price advantages, many visitors are bothered that the rates on AirBnB fluctuate too often.
AirBnB prices fluctuate depending on customer demand, how near the stay dates are at the time of booking, and whether the host has set custom prices for the property. The prices also deviate from what’s listed if the host charges extra for guests.
In this article, I’ll explain how AirBnB prices are determined and what factors make them fluctuate. I’ll also give you some tips on how you can save money on your AirBnB reservations by bagging discounts from hosts.
Why Actual AirBnB Prices Deviate From What Is Listed
It’s a shock when you discover that what you have to pay for your AirBnB reservation is different from what was listed. Sometimes the difference can be a few hundred dollars, which is enough to make you start your search for affordable accommodation all over again.
The following are the reasons why AirBnB prices fluctuate so much:
The Host Sets Custom Prices for Specific Stay Dates
AirBnB displays the nightly rates of rental properties. It’s the minimum price that the host has determined for the property. You see these rates before you select the dates for reservation.
According to AirBnB, some hosts set custom prices for specific days or time periods. For instance, they can choose to charge more than the default price for weekends, holidays, or long-term reservations. These custom prices aren’t displayed upfront.
When you add your reservation dates, the custom prices override the default or minimum rates. So, you see a price that’s different from the nightly rate that was initially displayed. If this happens, ensure that you choose the reservation dates when you search for accommodation. If the host updates the prices before you select the dates of your stay, you’ll have to pay according to the new rates.
Available Inventory Is Low
Sometimes AirBnB hosts can raise the nightly rates for their properties when you are near the stay date. This tactic is profitable in locations or during times when the demand for vacation rentals is high.