How to Set the Perfect Price for Your Airbnb in Montreal

How to Set the Perfect Price for Your Airbnb in Montreal

Montreal

Pricing your Airbnb property right can be the difference between a bustling calendar and empty rooms. Every day, week, and season brings different demand levels, making it tricky to know what rate your property can realistically achieve. In this guide, you'll find essential insights on all the factors that influence Airbnb pricing in Montreal—from seasonal demand and local events to occupancy trends.

We’ll begin with some key data on Montreal, followed by a breakdown of the three main pricing approaches for Airbnb properties, along with their pros and cons. Follow each section carefully to make the best pricing decisions and maximize your property’s potential.

Average Nightly Rate For Airbnb's in Montreal by Season:

Here are the typical nightly rates for Airbnb listings in Montreal across different seasons. Obvisouly, the price may vary hugely depending on the amenities offered and the property style as well location plays a key role.


Property Type Room Count Season Nightly Rate (CAD)
Private Room 1 room Summer 70-100
Private Room 1 room Winter 60-90
Flat Entire unit Summer 120-200
Flat Entire unit Winter 100-180
House Entire house Summer 180-300
House Entire house Winter 150-250
Bungalow Entire bungalow Summer 200-350
Bungalow Entire bungalow Winter 180-300
Villa Entire villa Summer 500-800
Villa Entire villa Winter 400-600
Please note that these rates are approximate and can vary based on location, amenities, and specific property features.

Occupancy Rate Trends in Montreal:

Understand the occupancy patterns in Montreal throughout the year. Recognizing peak and low-demand periods can guide your pricing adjustments.


Period Occupancy Rate Key Factors
High-Demand Periods Summer Months (June-August) Occupancy rates are typically high during the summer due to peak tourist season, festivals, and events such as the Montreal International Jazz Festival.
Low-Demand Periods Winter Months (January-February) Occupancy rates tend to be lower in the winter months as fewer tourists visit Montreal during the colder season.
Major Events Montreal Grand Prix (June) The occupancy rates surge during the Montreal Grand Prix due to the high influx of visitors attending the event.
Weekends Friday-Sunday Weekends often show higher occupancy rates as many travelers opt for weekend getaways or short trips, particularly in the summer months.
This table provides a snapshot of the occupancy rate trends for Airbnb in Montreal, highlighting both high-demand and low-demand periods, major events that impact occupancy rates, and the popularity of weekends among travelers.

Local Events that Impact Airbnb Prices in Montreal:

These are the key events in Montreal that affect Airbnb pricing and demand. Aligning your rates with these events can maximize occupancy and revenue.


Event Timing Influence on Demand
Festival International de Jazz de Montreal June-July This world-renowned jazz festival attracts music lovers from around the globe, leading to a significant increase in demand for Airbnb accommodations in the city.
Montreal Grand Prix June Formula 1 fans and tourists flock to Montreal during the Grand Prix weekend, creating a surge in demand for Airbnb rentals, especially in proximity to the Circuit Gilles Villeneuve.
Montreal International Fireworks Competition July-August This annual fireworks competition attracts spectators looking for accommodation with great views of the fireworks displays, leading to increased demand for Airbnb listings with balconies or rooftops.
Montreal Comiccon July Fans of comics, sci-fi, and pop culture converge in Montreal for Comiccon, resulting in a higher demand for Airbnb properties, particularly those close to the convention center.

So, How to Price it Right?

As an experienced Airbnb host, I’ve learned there are three primary methods for setting prices, each with its own advantages and challenges. Here’s a practical breakdown to help you make an informed decision and maximize your rental income.

1. Manual Pricing

With manual pricing, you select a rate for each day, week, or month on your calendar. Watch this video on how to update prices on your calendar manually.

ProsCons
Full control: Over pricing for specific dates, allowing flexibility for weekends, holidays, or peak season adjustments.Time-consuming: Frequent updates are needed, especially during high-demand periods.
Risk of leaving money on the table: Missing out on peak earnings during busy times or failing to lower prices during slower periods.
Limited market insight: Without real-time data, you risk underpricing for high-demand days or overpricing during slow seasons.

Example: Setting a flat rate of $100 per night may seem easy, but it could lead to missed opportunities. A busy weekend might warrant $150, while a slower weekday could require $90 to attract bookings.

2. Airbnb Smart Pricing

Airbnb’s Smart Pricing feature automatically adjusts rates based on local demand. Learn how to enable Smart Pricing on Airbnb.

ProsCons
Easy setup: No need for third-party tools.Priced too low: Airbnb often favors higher occupancy, leading to lower prices and, consequently, lower revenue.
Automatic adjustments: Adapts to area demand, so you don’t need to constantly update prices.Reduced control: You can set minimum and maximum prices, but the algorithm’s primary focus is occupancy over earnings.

Example: Airbnb might suggest $65 for a property that typically rents for $120. This may fill up your calendar but at the expense of significant income.

3. Dynamic Pricing Tools (Best Option)

Third-party dynamic pricing tools, like Beyond Pricing, use advanced data to set daily rates based on market conditions, similar to hotels and airlines.

ProsCons
Data-driven algorithms: Factors like local events, competitor pricing, and seasonality ensure you’re optimizing rates.Cost: Typically a small commission or monthly fee (e.g., 1% of bookings or $10 monthly).
Revenue maximization: Capture peak rates during busy times while staying competitive in slower periods.Learning curve: Getting comfortable with the tool’s settings and reports takes a little time.
Automated and customizable: Set your base price, minimums, and even specific discounts. Prices update daily.

Beyond Pricing offers features like orphan gap filling and last-minute discounts to avoid leaving money on the table. If you’re earning over $2,500 monthly, their flat $10 monthly fee is generally more cost-effective than a percentage commission.

Special Offer: Beyond Pricing offers a 1-month free trial. Follow this link to sign up and give it a try to see how it can optimize your earnings.

Practical Pricing Tips

Regardless of the method you choose, here are some practical steps for setting an effective baseline:

  1. Check the local market: Look up similar properties to get a sense of the going rate. If similar listings are priced at $100 per night, start slightly higher.

  2. Start high, adjust down: Try setting a rate of $120, then reduce it by $5 every three days until bookings pick up. This strategy helps you find the ideal rate where bookings are consistent.

  3. Focus on the nightly rate: Ignore service fees and commissions when comparing, as Airbnb automatically adds these to the listing price.

Why Pricing it Right Matters

Pricing is not just about covering your costs; it’s a key factor in your property’s visibility and booking rate. Lower prices can lead to more bookings, but balancing occupancy and rate is essential for maximizing revenue.

With a dynamic pricing tool like Beyond Pricing, you get automated, data-backed rate adjustments that help you capture the highest possible earnings while keeping your calendar full. I highly recommend Beyond Pricing as a reliable, market-savvy tool that adjusts rates in real time based on demand.

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