Pricing a holiday let without underselling it

Most owners price by looking at three nearby listings and sitting just below them. It is the most common method and the most expensive one.

Start from the bottom

Add up what the property costs over a year whether or not it is let — property tax, insurance, utilities, internet, garden, subscriptions, and a provision for replacement. Then what each stay costs: cleaning, laundry, consumables, payment fees. You now have an annual fixed cost and a cost per stay. The first tells you how many nights you must sell before earning anything; the second is the floor below which a night makes you poorer.

Only then look at the market

Compare like with like, and compare all-in prices: a €90 listing with a €70 cleaning fee is a €160 listing for a weekend. Look at your neighbours' availability too — a full calendar at €140 teaches you more than an empty one at €90.

Three seasons, not twelve

High season is where the margin is made; mid season covers school holidays and long weekends; low season is about covering fixed costs. A classic trap: dropping the price in low season without dropping the minimum stay. A February guest wants two nights, not seven.

Extra fees

Whatever you decide, a surprise at checkout costs more than a higher price up front. On your own site you are not obliged to copy a platform's fee structure — many owners show one all-in price instead.

Should the direct price be lower?

Check your contract for rate-parity clauses before undercutting anywhere. You may always offer more rather than charge less: late check-in, a welcome basket, an advantage on a return stay.

The three-stay rule

After changing a price, wait three stays or three weeks, then read two numbers: enquiries received and occupancy. A price rise that costs 10 % of enquiries but adds 25 % of revenue is a good price.