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So below is a copy of a notice I received via email today from Airbnb showing searches for my property I assume and the price range people were willing to book at. As follows:
Turn lookers into bookers
3 people who looked at Amazing River House Waterfront Apartment for March and April booked listings that are an average of $75 less per night. Consider lowering your price to attract bookings.
Here are a few examples of bookings at lower prices:
Missed booking Mar 10-13
$47 less per night
Missed booking Mar 23-26
$53less per night
Missed booking Apr 8-11
$124less per night
Go to pricing settings
Sent with from Airbnb
Please note that ALL these prices are way below my off-season minimum price - REALLY Airbnb this is so annoying since I am not going to rent my Waterfront two bedroom apartment for $47.00 per night? Anyone else get a notice like this?
Someone more mathematically inclined (maybe it was @cabinhost ) posted an explanation of why they make so much more money on a high quantity of low-priced places than the opposite, which accounts for them pushing low pricing on us. Super annoying though to be told what the competition is doing… To appeal to our paranoia. As though one place is even equal to another.
Yea. I got one of them as well. I laughed… I know which place was booked, and it isn’t a three room suite. The lack of distinction within the AirBNB app as to what type of property you are offering doesn’t really allow them to mine the data in a very comprehensive way. Know what you are willing to rent your space for and then don’t be badgered into going below that number by AirBNB.
I missed that post with the explanation, but this explain the random ‘throwing off’ of superhosts or hosts with tons of reviews from AirBnB - these hosts are in a position to raise their rate since they are market leader, so AirBnB has actually an interest in attracting new hosts on AirBnB to offer their properties for low rates ‘to build a reputation’. AirBnB gets in exchange also the reputation of the cheap accommodation provider.
I didn’t get one but had I done, I’m sure I would have laughed as well. I like the service that Airbnb provide and they are the brand leaders but there’s no way they know more about pricing our rental than I do.
Hey I think it’s kinda cute. It has that old fashioned Florida shabby chic. Some people might pull in there after a long road trip and be fine. Others are looking to save that $35 per night. If you stayed long enough it could add up. Still others don’t care about the room, they are just going for the beach. They will be at the beach all day.
When I wanted to say near the Cape after the launch of Endeavor (my friend was a six-time shuttle astronaut and invited me) we stayed at a vintage motel in Cocoa Beach. It was super cool. Kinda like going back into time or something. Some people just like that vibe.
I don’t see how you can compare your place to these roadside places. There is a purpose for yours and a clientele for yours and there is the same for theirs.
You are saying these motels are listed on Airbnb?
Again, though, don’t they mainly serve the driveby kind of guest?
Air makes more money from a large quantity of lower priced listings than s smaller quantity of higher priced listings. That’s why they are always pushing us to lower our prices. It’s laughable so it is best ignored.
From time to time, AirBnb encourages me to lower my price in order to make a booking. Airbnb is NOT aware of my costs so although they make the suggestion, I ignore their suggestions. They don’t pay my costs so I won’t accept their suggestions. In my case, I have a timeshare in Florida and Airbnb collects Florida Occupancy tax and submits it to the state. What galls me is that if I did not go through Airbnb, the client wouldn’t know about the OCC tax and I could raise my price but because of the tax, I have to keep it lower than my competition.
Thanks so much for your very interesting posts and this discussion has been very reassuring to me that Airbnb’s pricing is totally off the market in many areas and their strategy is to keep the bookings volumn up and they are not that interested in quality at all!
Airbnb’ guide price can be misleading. They advise new owners who have no clue to price really low to attract bookings. I’m not lowering my price like they suggested, so I get less bookings from Air now, but I still get my holiday home booked by guests from other sites, at reasonable price.
Owners who used their smart pricing might find they are not earning money then they quit (too many “hidden” costs to inexperienced hosts). This is not a good strategy, many new hosts don’t benefit and guests’ experience could be average because of the low price.
Btw, I have a nearby competition, which is actually a BestWestern motel, who lists itself as entire place, lol.
Robert_Dudley, I know I wasn’t clear about why I objected to the OCC tax, and that was intentional. Now that you have criticized my comment, here is the situation. What I have offered to rent via Airbnb is 7 days accommodations in a Timeshare that I own and will not be using this year. I am not a hotel, a bed and breakfast or any other full time operation that routinely accommodates vacationers or travelers in general. When I use my TS, I pay no OCC tax. If I allow my children to use the TS, there is no OCC tax. If I send relatives to stay in my TS, there is no OCC tax. The ONLY reason an OCC tax is being collected by Airbnb is because they have an agreement with the state that they will collect the tax when someone rents out their facility. Further to my example, I am sending a relative to use some time at another TS that is not affiliated with the TS I rent out. There will be no OCC tax on it as it is being considered to be me occupying the unit even though it is in someone else’s’ name. Because the amount of the OCC tax is based on the total amount paid and a percentage is charged, the OCC tax can be quite substantial and when you add the cost of my rental with the cleaning fee and the OCC tax and the Airbnb charge, well, some people can no longer afford the expense and back out. If I want to rent the unit, I have to lower my price so as to make the final amount more acceptable to potential renters. If there was no OCC tax being charged then I could raise my price and still be acceptable to potential renters.
I keep my price low for two reasons, 1) so that I can capitalize on renting my unit over my competition and 2) to recover my annual costs of maintenance and other fees. I am not in it to get rich, I just don’t want the unit to go empty.