Cost per calendar day is not enough
Dividing monthly expenses by thirty implicitly assumes that every day generates income. To find a price that covers expenses, estimate how many nights will be booked, how many are available and what each additional reservation costs.
Separate expenses into fixed costs, per-night costs, per-departure costs and percentages of revenue. Laundering one linen set, for example, should not automatically be treated like a monthly internet connection.
Hypothetical floor calculation
Assume €600 in fixed expenses, €12 in variable costs per sold night and total percentage charges of 25%. Also assume that each cleaning is fully covered by a separate charge after the relevant deductions, to avoid counting it twice.
With ten sold nights, the hypothetical average price floor is €96: €60 in fixed costs per night plus €12, divided by 0.75.
With fifteen nights it becomes approximately €69.33, and with twenty nights €56, before taxes, financing and return on capital.
These amounts are arithmetic examples and do not describe an actual property or Hostions fee. If actual cleaning costs are not covered, add the uncovered cost per reservation and use a realistic average stay length.
The 25% is a hypothetical total of charges for the example, rather than a management percentage.
For a budget with Hostions, calculate actual platform commissions and the cleaning charge separately. Then apply the 14% fee to the balance, without counting it a second time within total costs.
Choose comparable properties carefully
Search the same dates, guest numbers and a similar stay length. Compare neighbourhood, bedrooms, access, floor, lift, outdoor spaces and meaningful amenities, recording differences rather than ignoring them.
Look at the total payable amount rather than only the first displayed nightly price. A public asking price shows what is offered at that moment, rather than the price ultimately paid or the number of reservations made.
Use different reasoning for different dates
One amount for the entire year limits testing and makes results harder to interpret. At least separate periods with different demand expectations and consider the time remaining before arrival.
For special dates, set the price and minimum stay using a documented assumption, without automatically increasing prices because an event exists. Airbnb allows custom prices by date, with changes applying to future reservations.
Check discounts and automation
The final price needs testing after length-of-stay discounts, offers and commissions. The official Smart Pricing help explains that some discounts can bring the payable price below the tool's configured minimum.
Define who approves departures from the financial floor and record their duration. A controlled test for a specific calendar gap needs a beginning, an end and an evaluation criterion, rather than becoming a forgotten discount.
For organised monitoring, consider dynamic pricing and maintain a consistent change log. Assess the amount left after each stay's expenses, booked nights and available dates together before deciding whether the new price was actually useful.
If the financial floor is consistently above comparable final prices, reconsider costs, operations and the overall suitability of the model.
Arbitrarily raising the asking price does not itself create guests willing to pay it, while continuously selling below the floor needs a clear financial justification.
