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We have used Airbnb as hosts for about 1.5 years to fill openings in our calendar, but this year we have done 66% of bookings and 81% of revenues via direct bookings. Blah blah blah.
My question is from the viewpoint of a traveler. We are planning a trip to Costa Rica later this year, and we found a property that we like. We are two couples, four adults, no children. The property has two bedrooms plus a sofa sleeper and states a maximum occupancy of six people. The “list price” on Airbnb is $160 USD/night, but for more than two (2!!!) guests, the hosts wants $25 USD per person/per night. So $210 USD (plus Air’s fees) for four guests instead of $160. $260 USD/night for six people. Some guests would book for two guests and show up as four, but obviously I refuse to do so.
To me this seems shady, but perhaps I am naive. Your opinions would be appreciated.
Base price may be one thing – seasonal prices are another, and you may be seeing that difference. You can stay at our place for $65 per night in summer, but $99 per night during our winter Snowbird season.
Also many people with large listing have two or even three charges – for 1, 2 or 3 couples – with a base price for one couple and per person charges for additional guests.
Mine is set up exactly the same way - first 2 guests is $175, next 2 $50 per night.
Airbnb fees can be + 20%
If I listed a whole house price sleeping 6, 2 guest bookings would never rent it as it would be too expensive.
I don’t see a bait and switch, I see equitable pricing on a per head basis
Wasn’t there just a thread where this was addressed regarding ABB policy regarding rates and whole home listings? Where the rate shown needs to be the price for the whole home and not a per room fee? I hope I am saying this right…
We have one of those properties you would call “bait and switch”. Our vacation home is in the Caribbean in an area sought after by honeymooners, but has three bedrooms. We charge extra per person for more than two guests - or you can look at it that we discount for fewer people. This is because it is very hard to stay full with groups of six (there just aren’t enough travelers), so we have to attract some smaller groups. Water, electricity, WiFi, maintenance are all expensive. Replacing items is very expensive - everything is twice the price of the US by the time it’s shipped and duties are paid.
I would be thrilled if anytime my property was shown to you that you would see the full rate structure, but that’s not the way the websites are set up. Blame them on the way it’s presented, not the owner.
Nothing at all Bait and Switch about this.
Either book … if you like the property and the price, or find something else better suited to your needs and budget.
The property possibly has caretakers, and /or cameras to ensure an accurate guest head count.
I am actually surprised to see this question with a viewpoint towards it being “shady”.
Everyone is entitled to manage, market and maximize their income as best as possible.
Seems to me that you did not use the search correctly. Next time put in 6 people from the start.
Seems to me you are venting your frustration about your own fault here.
A lot of listings have an extra person fee. Extra persons mean extra cleaning, extra laundry, extra water consumption, extra energy use and extra wear an tear.
We do the same a 2p base price and extra charge for extra people.
We don’t use the extra person fee but nevertheless I knew that it was available on Airbnb. There’s nothing in the least bit shady about it - why should there be?
Very reasonable indeed. Nothing at all to complain about.
Thanks to all that responded and helped to educate me on this subject. I understand the pricing strategy now, and I apologize that I characterized the practice as “shady”…I would retract that if I could.
While, IMHO, the price of a whole-house rental should include the use of the whole house up to the maximum occupancy, I see that you can effectively offer a discount to smaller parties by implementing the per-guest fee. Lesson learned. Thank you!
Now that everyone has taken you behind the shed and beaten you I’ll step in and say I know exactly what you mean.
I was shopping recently for a home in a large urban (US) city that could accommodate a minimum of 6 but possibly 8 to 10. I actually did deal with a superhost who did a bait and switch that involved both dates and price. My dates were set so her game/trick didn’t work for her (or me). Stinging from that I found another home. I put in 6 for search initially and got a price. Then when the additional 2 friends said they’d be going as well I did a new search and thought the price had gone up. I was getting annoyed, but when I realized it was a $50 per person extra fee, it was fine. I think such fees are justified and good practice for most hosts thought not for all so some hosts set their listing that way, some don’t .
Hi, Deb, I have toyed with the idea of breaking the price down to couples, as you have, for my house which can sleep 6. I’m going off the topic of this thread, but if you’re willing I’d appreciate a chat off-line as to how cost-effective your pricing is, and whether you draw more couples than larger groups?
If you put in 4 guests in the search criteria it should adjust the prices it shows you accordingly. Similarly put in the correct dates and don’t rely on the prices shown as they are the cheapest for all future dates.
@Casa_Toucan I do not think this is a bait and switch at all and it is exactly how I have my two properties set up. Here is my logic. I do not want to discourage two people from staying at my two bedroom - four bed a River House apartment but our Airbnb accommodates up to 6 people so we charge $25.00 per night for each extra person over two. It is clearly stated in our description and in 5 years of the STR business - I use other platforms as well - I have only had a few people question the fees and when I explained that extra people are extra expense there does not seem to be a problem in their understanding. So if I review my competition, there is a home near mine on the river as well that charges $225…00 per night for 2 people or 6 people, and mine is definitely more cost-effective for 2 and about the same for 6 people.
Having an attitude that this pricing structure is “shady” or “dishonest” really makes Airbnb more expensive and difficult for everyone. Lets say everybody had a problem with the $25 extra per each guest after 2. The host would have no choice but to raise the minimum nightly rate to be effectively the same as having 4-6 guests instead of 2.
So people who are coming with only 2 guests would have to pay more just so people with 4-6 guests won’t complain. When you have more guests, there’s more housekeeping to do. Thats why its less for less guests. In the end if its $160/2 people thats $80/ea. If there’s 4 guests thats $55 per night. The extra $25 charge is for extra housekeeping.
I use a flexible pricing tool that prices each night based on demand and availability. My lowest rate - and the one Airbnb uses in their search results is “FROM $135” but weekend and holidays are much higher. Usually $195. You know, like hotels do. Their rates vary, as well. Occasionally someone gets all “Oh! What? I thought it was $135!” but I explain the deal and that’s that. I also charge $25 for any extra people over 4 and I must pre-approve.
