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Additional Guests Pricing In India - Why is Airbnb imposing a high minimum fee per additional guest?


#1

Hi,

This is for the hosts who have properties in India.

I have been trying to price my listing per guest but have not been able to. That is because Airbnb has imposed a minimum of INR 361 for an additional guest above the base price as the alert would tell you. “Please use a extra fee per guest of at least ₹361 but no more than ₹21,667”

Why is Airbnb imposing a minimum fee/price per guest after the base minimum?
Why is INR 361 the magic minimum figure for an additional guest?
Properties in India are price sensitive and the minimum if so necessary should start at INR 250 or 300?

Any views on this. Thanks.

Ram


#2

There is no such thing on my listing in the US. Is this just an India thing? Why would that be?


#3

Must be an Indian thing. Contact your local Customer Service.


#4

Yes. Failed to understand why this should be. And Customer Service has no idea…


#5

The explanation is pretty obvious, let me give you a hint:

Exchange rate


#6

Here you go:


#7

Yes. Thanks.

I too figured out it was the exchange rate in action. But it still beats me. If the minimum in the United States market is USD 5, how can it be the same value for every geographical zone AirBnB operates in.

After all pricing is geographical-zone sensitive and AirBnB cannot simply just convert a minimum set in their country of origin for every geographical area.

The Airbnb business team needs to urgently set this right.


#8

Why? If we’re using Airbnb’s site, then we have to abide by their rules and regulations. Just like hosts expect guests to abide by the house rules.

We agree to that when we sign up, right?

From Google, just now:

361 Indian Rupee equals

4.96 United States Dollar

Nov 12, 3:34 PM UTC

I appreciate that some people want extreme bargain listings but $5 for an extra guest fee seems to be very low.


#9

Well, of course everyone has to abide by rules and regulations.

But in this case, it is not a rule or regulation. Pricing is an extension of market dynamics. So the additional guest minimum of USD 5 in the United States cannot be enforced across the world by simply converting it into another country’s local currency.

Price elasticity is key. So until and unless the Airbnb business team researched the local market and then set up the minimum and maximum pricing, another Geographical area A’s minimum cannot also be geographical Area B’s minimum IMHO.

If that is so apples across the world will have to cost 50 cents because it costs 50 cents in the US.


#10

It is what Airbnb has decided it is. I’m sorry but that’s a fact. Airbnb has decided, whether we like it or not, that it is not going to let guests stay at properties that use its services for less than 5 US dollars per night (and allowing for currency conversions). Lower than that and it isn’t worth the company’s time and effort as fees will be minimal.

We have options within the Airbnb framework. For example, including the extra guest fee in the overall nightly charge. We have the option of not using Airbnb at all but using a similar service.

Asking Airbnb’s research team to investigate every single local market worldwide is simply not possible.


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