Did you know that Queen Elizabeth II could earn over £1 million a day by listing Buckingham Palace on Airbnb?
Millions of people around the world are fascinated by the British Royal Family and many of them would love the chance to spend a night sleeping in one of the royal bedrooms in Buckingham Palace which has 775 rooms including 19 Staterooms, 52 royal and guest bedrooms, 188 staff bedrooms, 92 offices and 78 bathrooms!
So how much would a night in Buckingham Palace cost you if you were an Airbnb guest?
We thought it would be fun to crunch some numbers and see what kind of cash you’d have to fork out if you wanted to stay at one of the most popular properties on the planet.
Our estimated day rates for Buckingham Palace:
– £3,570 for a royal bedroom
– £16,000 for a stateroom
– £16,000 for the banquet room which seats 160 guests
– £400,000 for the Palace’s garden where approximately 8,000 of your guests could frolic about with access to 40 acres including a helicopter landing area, a lake, and a tennis court.
How did we come up with the figures? We took into consideration the daily rental rate of properties in the same area as well as the prices of event spaces and hotel suites that provide a similar level of luxury.
We also took into account the large number of quality amenities offered at the palace – such as a private movie theatre, indoor swimming pool, post office, and medical facilities. These kinds of amenities can increase your day rate by 50 per cent.
Of course, Buckingham Palace is not going to be listed on Airbnb any time soon – but it’s fun to imagine!
What’s your market value?
You might not have a stately palace to rent out but listing your home on Airbnb could allow for a decent income if you price your property well. Did you know that 60 per cent of your holiday rental income comes from the actual value of your property and the rest is dependent on whether you are able to put into place a solid pricing strategy?
There are some simple things you can do before setting your price to ensure that it’s the best that it can be:
1. Look at your competitors
Search local Airbnb listings and find out what similar properties are charging as their day rate. When you’re starting out it’s often a good idea to make sure your rates undercut your competition. This will allow you to gain a list of great reviews and then, down the track, you will have the ability to increase your rates.
2. Check the calendar
Tourist influxes happen when there are seasonal or special events taking place and as an Airbnb host you need to be on top of these events so that you can maximise your rental income during peak times. Always adjust your rates according to supply and demand.
3. How marketable is your location?
If you have a studio apartment in the middle of London, within five minutes walk to a major tourist site or a popular tube station – you can charge a premium above a similar Airbnb listing on the outskirts of the city. If your property is at the fringe of a city, highlight to potential guests the benefits of booking your property. For example, highlighting if your property enjoys good transport links, is baby and/ or pet friendly and is available for medium-term lets. Help your property stand out with design.
4. Offer long-term discounts
A great way of making sure you have a regular Airbnb income is to offer discounts for people who book longer stays. In particular, use this tool during non-peak seasons when it’s harder to achieve full occupancy rates.
Using an Airbnb host calculator
At GuestReady we understand that it can be tricky to determine the best price for your Airbnb which is why we provide a free online tool to take some of the guesswork out of it for you. Check out our online property calculator to find out the average daily rate you can charge for your property.
If it’s all a little bit overwhelming, why not let our team of experts help you? We provide Airbnb management services to hosts in London, Manchester, Edinburgh, Paris, Cannes, Porto, Lisbon, Dubai, Kuala Lumpur, and Hong Kong. Our team of experts can help you set a competitive price for your Airbnb. Schedule a call today for more information.