Did you know Airbnb bookings dropped for some hosts overnight, just because guests could finally see cleaning fees upfront? That one change in pricing transparency forced thousands of hosts to rethink how they were pricing rental property on the platform.

 

Some cut cleaning fees to stay competitive. Others raised nightly rates to make up the difference, only to see bookings slow down. Many quickly learned: pricing isn’t just about what you charge. It’s about what your customer feels they’re getting in return.

 

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If you manage a rental property, this probably sounds familiar. You set a price that seems fair based on your costs or what others are charging, but bookings stay flat. You start second-guessing: should you drop your rates? Add more features? Raise your cleaning fee and hope no one notices?

 

These are common reactions. But they often miss the deeper issue—most rental property pricing is based on assumptions, not on what customers actually value. That’s where customer value research comes in. And it’s one of the most underused tools in the property rental market today.

 

Capability Building Programmes For Pricing & Sales Teams!

 

What Is Customer Value Perception Research?

 

Customer value research is about understanding what your guests truly care about—and what they’re willing to pay for. It’s not about guessing or assuming. It’s about gathering evidence directly from the people who stay in your property (or choose not to).

 

This research digs into questions like:

 

  • What features matter most to guests?
  • What makes them feel a listing is “worth it”?
  • What extras or deal-breakers affect their decision to book?

 

Instead of setting your price based on what your competitors are doing, you set it based on what your guests perceive as valuable. That’s the key: value is about perception. And perception drives pricing power.

 

Importance Value-Based Pricing during Inflation 💰 Podcast Ep. 98!

 

Lessons from Airbnb Host Pricing Transparency

 

Many rental property owners fall into the trap of guessing. They assume a lower price will attract more bookings. But that can signal lower quality. Others aim high, without backing it up—only to scare off budget-conscious travellers. Relying on assumptions or copying competitors can leave money on the table, or worse, erode trust. That’s why pricing needs to be grounded in real customer insights.

 

When Airbnb introduced total price displays in the European Union—including cleaning fees up front—it created a real-world experiment in pricing psychology. Some hosts responded by lowering their fees to stay competitive. Others increased nightly rates to maintain revenue, which sometimes led to fewer bookings. Interestingly, listings that had always offered all-inclusive pricing suddenly looked like better value, so those hosts raised their prices too.

 

The takeaway? Transparency reshapes buyer behaviour. Clearer prices help customers make more confident decisions. They also push hosts to price more thoughtfully, rather than relying on hidden fees to stay afloat.

 

 

Customer Value Research Process for Pricing Rental Property

 

If you want to understand what your guests value—and unlock rental property pricing opportunities—start here:

 

1. Collect Feedback (Beyond the Star Rating): Send a short, friendly survey after check-out. Ask: What did you love most about your stay? Was anything missing? Even better, look at existing reviews and highlight repeated praise or complaints. These are goldmines of insight.

2. Listen to Why People Didn’t Book: If your platform allows, look at abandoned bookings or message threads. Did guests ask about price, fees, or missing features? This uncovers friction points you might not see from successful bookings alone.

3. Look for Booking Trends: Are your guests mostly couples, families, or solo travellers? Do they come during specific times? Identifying patterns helps you match pricing and packages to demand.

4. Test and Learn: Try different pricing tiers or bundles (like including breakfast or offering late checkout for a fee). Then track how each version performs. You don’t need to overhaul your whole pricing strategy—just test small changes and see what works.

5. Talk to Guests: A quick chat at check-in or a follow-up email with a thank you message can open the door to great insights. Ask what made them choose your place over others. The answers might surprise you.

 

Pricing Recruitment For Pricing Managers!

 

Leveraging Customer Value in Your Rental Property Pricing 

 

Once you understand what guests value, you can confidently build effective rental property pricing strategies. But it’s not just about having more options—it’s about offering the right options based on what your customers truly care about.

 

1. Highlight Your Strengths: If guests rave about your comfy beds, thoughtful extras, or great location, make sure those features are front and centre in your listing. People are willing to pay more when they clearly see the value they’re getting.

2. Offer Flexible Packages—But Stay Value-Driven: Creating different packages can help you appeal to various guest segments, like couples looking for a romantic stay or families wanting extra space. But don’t just bundle extras for the sake of it. Make sure each add-on or upgrade reflects what your guests genuinely value. For instance, early check-in might matter more to business travellers than to weekenders. Let customer value research guide what you include and how you price it.

3. Use Dynamic Pricing—In Line With Customer Value: Dynamic pricing helps you adjust rates based on demand, season, or local events. But again, don’t lose sight of value. Just because you can raise prices during a busy weekend doesn’t mean you should—unless you’re offering something guests still feel is worth the higher rate. Always ensure price changes are aligned with what your guests believe is fair and worthwhile. That’s how you boost revenue without losing trust.

 

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Unlock the Power of Customer Value in Your Pricing

 

Getting your property rental pricing right takes more than a gut feeling. It requires insight into what your guests value and how they choose. Customer value research helps you uncover what truly matters, so you can price based on value, not just cost. Stop comparing prices and start asking what your guests really want. The answers could transform your pricing—and your revenue.

 

If you’re ready to dive deeper into customer value research or need guidance on applying it to your pricing strategy, we’re here to help. Reach out anytime for a chat or assistance tailored to your needs. Together, we can make sure your property stands out—and your pricing works for you.

 

For a comprehensive view of maximising growth in your company, Download a complimentary whitepaper on A Capability Framework for Pricing Teams.

 

Are you a business in need of help aligning your pricing strategy, people and operations to deliver an immediate impact on profit?

If so, please call (+61) 2 9000 1115.

You can also email us at team@taylorwells.com.au if you have any further questions.

Make your pricing world-class!