Here are some things to think about when setting your prices…
The room price you choose will significantly affect your occupancy rate and the types of people you attract.
Do you want to match the prices offered in the local market or charge extra to access your vetted community?
As a coliving host, you probably already know the value of your community, and your guests should know too. You should find a way to market it and charge for it accordingly.
Some things to think about when setting your prices:
- What is the minimum price per person to break even if all rooms are full?
- What is the price you need to break even if you attain an average 50% occupancy rate?
- How long do you need before you have to pay back any investment?
- Do you want one set price throughout the year or vary depending on high and low seasons?
- Local events such as music festivals and conferences will attract many people, so should you raise your prices on specific dates?
- Long-term or short-term stay – or both, with a discount for more extended stays?
- A lower price for locals/ex-pats already in the area?
- How about a lower price when a guest returns for another stay?
- Reduced price if a guest refers a friend?
- Lower price for skilled guests who can contribute to your business during their stay in the form of programming, photography for marketing and advertising, administration, website content, etc.
- Do you want to set a low price per room and charge extra for items such as laundry and breakfast?
Here are the 4 levels of monthly prices we have found – with monthly being 30 days:
Basic: $300 -> $600
Medium: $600 -> $1,200
High: $1,200 -> $1,800
Exclusive: $1,800 -> $3,000
These prices can be charged anywhere in the world, but it’s all based on what you are offering in return.
For example, you can offer a bunk bed in NY for $500 per month, and you can provide villas in Bali for $2,500 per month.
It depends on your outgoing costs and how many guests share the space.