If you’re a UK-based Airbnb host, property manager, or thinking about making your first investment, you’re likely wondering how to make your property work harder and deliver stronger returns. The good news? It is possible to make more money from your holiday let, even without adding more units or devoting more hours.
This blog will walk you through some smart strategies to increase your holiday let income, understand what’s really eating into your profits, and use data to price more effectively – all with the ultimate goal of putting you in control.
Increasing profits goes beyond just increasing occupancy
It’s easy to assume that high occupancy equals high income. But in short-term rentals, that’s only half the story. A calendar full of bookings won’t help if you’re under-pricing your nights or overspending on cleaning and management.
True profitability is about finding the sweet spot between occupancy, pricing, and expenses. To increase your income, you don’t just want more bookings – you want better bookings.
The key to higher profits
One of the biggest levers for increasing income is your pricing strategy. Many hosts fall into the trap of setting static nightly rates or copying local competitors, but guest demand fluctuates constantly, and so should your prices.
Here’s how to price smarter:
1. Know your local market
Every location is different. A beachfront cottage in Cornwall has different pricing patterns than a city flat in Manchester. Use data-driven tools like Beyond’s free Market Trends Reports to understand when demand peaks, how your competitors are priced, and where you can outperform them.
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2. Use dynamic pricing
Static pricing leaves money on the table. With dynamic pricing, your rates automatically adjust in real time based on demand, seasonality, local events, and booking trends. Platforms like Beyond use AI-powered advanced algorithms to help hosts earn more without micromanaging rates every day.
3. Adjust for last-minute and far-out bookings
Lowering prices for last-minute gaps can increase occupancy, while charging more for early-bird bookings (especially around holidays or festivals) maximises your margin. The key is balance – and that’s where automation makes a huge difference.
Understanding fees, costs, and margins
To take full control of your profits, you need to know what’s eating into your earnings. This starts with understanding your fee structure and expenses.
Platform fees
Airbnb charges hosts a 3% service fee under the simplified pricing model, while guests pay their own fee on top. Through other platforms or channel managers, host fees can go as high as 15%, so always check the terms – and explore direct booking options to keep more of your income.
Cleaning, maintenance, and management
Track all variable costs:
- Cleaning and laundry per turnover
- Welcome packs or consumables
- Management fees (if using an agent or co-host)
- Subscription tools (channel managers, pricing tools, etc.)
Once you know your average cost per stay, you can calculate a realistic net profit per night – the figure that really matters.
Seasonal pricing: don’t miss your peaks
One of the biggest opportunities UK hosts miss is not adjusting pricing for peak seasons. Demand spikes during:
- School holidays
- Christmas and New Year
- Summer months
- Local events and festivals
- Bank holiday weekends
If you charge the same nightly rate year-round, you’re leaving significant money behind. Tools like Beyond can help to automatically adjust your pricing to reflect demand spikes – so you charge more when it counts, without scaring off guests during quieter periods.
Use automation to save time and earn more
Managing a holiday let can be time-consuming – but automation frees you up to focus on high-impact tasks.
Here’s where automation makes a difference:
- Dynamic pricing (Beyond handles this for you)
- Calendar sync across platforms
- Auto-messaging for guests
- Minimum night rules that adjust based on demand
- Last-minute discounts and far-out premiums
With the right tools in place, you’ll spend less time manually updating listings, and more time thinking like a business owner.
Monitor performance and optimise regularly
Once your pricing and automation are running, check in regularly to review performance. Look at:
- Occupancy rate
- Average nightly rate (ADR)
- Revenue per available night (RevPAN)
- Booking lead time
- Cancellation trends
Platforms like Beyond offer clear dashboards and insights to help you spot patterns and act quickly.
Bonus tips to boost holiday let income
If you’ve nailed your pricing but want to go even further, consider these ideas:
1. Add upsell options
Offer extras like early check-in, firewood packages, or pet-friendly perks. Guests appreciate choice – and you create additional revenue streams.
2. Improve your listing
High-quality photography, a compelling description, and fast responses can boost your search visibility and booking rate.
3. Encourage direct bookings
Build a simple website or use a direct booking platform. Promoting to past guests via email or social media lets you bypass OTA fees entirely.
4. Collect reviews strategically
Great reviews drive bookings. Ask happy guests for feedback and respond to all reviews professionally. An extra 0.1 in your rating can have a big impact on your income over time. The difference between 4.6 and 4.7 on Airbnb can equal a significant jump in the algorithm.
Take control of your income
You don’t need to slash prices or work 80-hour weeks to increase your holiday let income. With the right pricing strategy, clear visibility on your margins, and smart automation, you can boost profits and reduce stress – no matter where your property is in the UK.
Want to see how your market is performing?
Try Beyond’s free Market Trends Reports tool and get powerful data on any short-term rental market in the UK.
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