Airbnb Answers: Pricing tools that drive host success

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Airbnb Answers: Pricing tools that drive host success

You asked: Can Airbnb offer hosts more flexibility and options to set our pricing?

 

Leading up to the last Host Q&A, you asked for more flexibility with your pricing options. We went straight to the team that plans and builds these tools to see what’s on the horizon. What we learned was surprising. It turns out we’ve built solutions for much of what you’re asking for, but lots of hosts don’t know about or use the pricing settings available. We also found out that sometimes offering certain types of discounts harms rather than helps your business. Intrigued? We were too.

 

To make sure you have the latest insights on pricing, let’s take a look at what your options are and how your feedback influences what we build.

 

Current pricing options

 

You specifically asked for the ability to set different prices according to a guest’s length of stay, or based on the days of the week (for example, charging a different price for middle of the week vs. weekend stays). We actually have tools that help you do both! You can offer a discount for stays longer than a week or a month, and you can set up custom weekend pricing.

 

You also asked about charging guests based on the number of beds they use, rather than the number of guests staying in the listing. While we understand that more beds used means more linens to clean, it’s sometimes difficult for guests to anticipate how many beds they’ll use at the time of booking. For example, not every listing describes if beds are queen sized or double, how many sleeper sofas there are, or how the beds are arranged in a room. Some guests may want to see the place before deciding if they’ll share a double bed with a friend or sleep on the pull-out couch. However, guests can accurately and confidently say how many people will be staying, and you can charge an extra guest fee to account for that. If the cost of cleaning and check-in for shorter stays is a concern, you can add cleaning fees to offset those costs.

 

How host feedback is shaping our work

 

Your feedback shows us where things aren’t working for you, and where we can do better. Based on what you’ve told us, we’re focusing our efforts on making every tool more accessible and intuitive. And we’re helping hosts understand how pricing tools work together, which rules take priority when multiple rules overlap, and how to use the tools you have for maximum benefit to you.

 

When it comes to building new pricing tools, we try to account for a multitude of host preferences while keeping things simple enough for guests to still want to book your space with Airbnb. To do this, we solicit host feedback, test new ideas, and notice what happens to bookings when we add new options.

 

Here’s a little insight into how we test and pass along our learnings to you: Sometimes we can anticipate reliable opportunities to boost your earnings. For example, you may have seen insight messages on your calendar and emails highlighting discount opportunities for specific dates that would otherwise go unbooked. When you apply these discounts, we highlight to travelers the value you’re offering and that attracts bookings.

 

Alternatively, sometimes we find that less is more—like in a recent test in which hosts added discounts for 3-6 night stays in areas we noticed travelers were searching for accommodation, and it turned out the guests who booked those discounted spaces would likely have booked the listing at the regular price for the same duration. It’s these types of insights that we pass along to you in how we build and what we recommend.

 

You always have control over the price you set for your space. And we’re committed to sharing what we learn about pricing best practices. We’re excited that Airbnb offers competitive pricing flexibility for you, a simple booking experience for your guests, and the promise that we’ll continue to listen to your ideas about how to make pricing even better.


In the latest Host Q&A, CEO and Head of Community Brian Chesky answered top-voted questions during a livestream event. For questions he didn’t have time to address, we’ve introduced Airbnb Answers. Want to ask more? We’ll let you know in Airbnb Updates when the question platform will open for the upcoming June 27th Host Q&A.

291 Replies 291
Mark917
Level 2
Simrishamn, Sweden

This is a holiday area so July/August are exclusivly weekly rents, but under June/September I would like to offer a daily rent... A symbol system in the calender maybe...?

Carol354
Level 4
Thames, NZ

Hi I think I have read most of the posts.

 

I read with interest that Airbnb thinks we will lose money on offering discounts for 3-6 days - we have been open since November & have not had a booking for more than 2 days. (our maximum is 7 days) We would like to at least have the chance to try this to get visitors to our town who are there for study or business.

 

We don't allow our guests to cook & would love the option for guests to book a meal as long as they book at least 24 hours in advance.

 

We are more a supply town in a tourist area but we were crazy busy over Christmas/first half of January. We could get a two day minimum then.  If Airbnb doesn't want to allow for this we may set a 2 day minimum & accept we may miss out on advance bookings.

Richard260
Level 2
Crofton, MD

I would like to see the percent of AirBnb rented within 10, 20 miles historically.

In other words, it would be nice to  determine the demand for AirBnb last year in my area - by date.

Chris959
Level 4
Bantry, Ireland

When I checked out the Smart Pricing option I was suprised to see just how unsmart it was! It was more like Crazy Pricing! In reality why would anyone let an apartment for 4 go for €27 euro per night total just to fill it!

E-and-C0
Level 2
Kelowna, CA

It would be great to allow us to add an invoice line for local taxes (sales or hospitality taxes) as your main competitor does.

Not allowing hosts to pass the required taxes to our guests dilutes profitability and adds a new layer of accounting needs. 

Chris959
Level 4
Bantry, Ireland

I would like to see a better control on who wants which bed. For example an apartment with a double and a single bed. ....when 2 people book on instant book I always have to check if they are a couple or 2 singles, because 9 times out of 10 they pay the double bed rate and want 2 seperate beds. Surely with all the smart algorithems or some adjusting of the booking systems this must be possible.

what would be very useful: the ability to allow shorter length of stay for specific period of time during the year.

Also shorter stay hammer the margins and the ability to increase the day rate for shorter stay would be essential to have. 

 

It would be helpful to have more control over cleaning fees.

You can’t charge the 1 night stay the same as the 2 weeks!

Cleaning Fees is set only as one off charge per booking.  This is ok for short term accomodation, but not OK for periods longher than a week.  Especially when a co-host is responsible for delivering check-in/out and cleaning serivices.  I would welcome a more flexible pricing tool that allows us to allocate clening fees on a per week basis, and have a separate line for check-in/out services. The guest will have a more clear understanding of services included, the co-host will be able to collect all relavant revenues directly, and the host will have more control on services costs (for changing of lynen and apartment cleaning).

Emil9
Level 2
Charlotte, NC

I would like to have options to set up prices for 2, 3, 4 days.
The existing options are not giving us any flexibility imo.

Andreas4
Level 2
Scotland, United Kingdom

Self-catering in Scotland is very much a seasonal business and with the high costs of change over (not just cleaning!) as like as the ban of charging separately for cleaning in most  countries it requires a more flexible pricing tool!

Pricing should be based on

1) the average or lowest daily rate for searches without any specific dates (in my case £ 85)

and

2) the highest daily rate of the individual season of the year for the minimum stay (eg. £ 180 per night at the leven of 2 nights minimum) with then discounts starting right from the next duration above minimum stay (eg. with 2 nights minimum stay 3 and 4 and 5 and 6 and from 7 nights) for searches with specific dates.

This way we could set up our seasonal  rates for the self-catering offer and get fair rates within the seasons.

Jason523
Level 1
Tucson, AZ

In short, I'd like to see AirBnb place a cap on surrounding Bnb competition in the same way fast food franchises restrict the number of openings per square mile.

 

When AirBnb lets market forces do the work, hosts are incentivized to supply less amenities at a lower price.  A property would have to be the equivalent of perfection to earn the discounted rates most Bnbs offer versus traditional hotels.

 

Despite 30 to 60% reduction compared to surrounding hotel rates, residential/pool cleaning (4 weekends turns in a month), landscaping, and utilities/insurance with standard mortgage does not make AirBnb worthwhile for me.  

 

Granted, I'm not located in San Francisco, yet Scottsdale offers a plethora of desirable events that guests frequent throughout the year.

 

While I've was booked consistently for a month, it became two weekends the next month, then none at at all the third month.  

 

Average reviews 5.0.  It seems the "superhost, finish line"gets moved based on the average tine hosts consider not hosting anymore.

 

I received the most bookings when my place was priced the highest, the AirBnb data science types tell me to use a "price tip" that's 40% off my already discounted rate.

 

Long story longer, it seemed that I attracted guests that wanted more the less they paid.  Hence, my property remains listed at the original price the first month with the potential for 12 guests.

 

However, my neighbors have since inquired my guests about whether my property is a Bnb such that neighbors enter the market at lower prices.  Ultimately, it becomes a "race to the bottom" when AirBnb does not sensibly restrict the number of competing Bnb hosts in a given neighborhood.

 

If Lone Start Steakhouse requires a minimum 17 miles between franchisees, Airbnb should do the same to ensure sensible, steady profits for its hosts and roughly 30% discounted rates for its valued guests.

 

Otherwise, I fear many great properties  and potential, long-time Bnb hosts and guests will the AirBnb platform due to subpar reimbursement and amenities.  Respectfully, 3 Months & Out!

Paul-and-Joey0
Level 2
Halifax, Canada

Hi everyone,

 

Would it be much to ask to add a field to add taxes? Soon we will make too much money and we will need to ask for HST in Canada and we need to tell the guests how much will go on tax so some can deduct it.

 

It would help us tremendously with our tax collection.

 

Thank you,

 

Paul and Joey

Katie56
Level 2
Royal Leamington Spa, United Kingdom

Same problem for me regarding beds. I have 2 rooms with king size bed in each room. So can accommodate up to 4 people. But I charge extra only after 2d person. But very often i receive a request for 2 people and it turns out they need separate beds. After that i added in my listing description that if 2 guests book but want to use 2 beds i will charge extra for the second bed/room. BUT!!! It doesn not help as majority of guests DO NOT read listing description! And it is confusing and annoying to ask them every time when i see a booking for 2, if they are a couple and how many beds they need. Only because of this i need to decline requests sometimes and can not use Instant booking. Hope Airbnb will add an option of booking the number of beds/rooms.

Michael1797
Level 2
Brécey, France

We have a gite in France which has 6 bedrooms, 3 shower rooms and a bathroom.  We take bookings from couples or family groups.  This means that pricing is hugely difficult.  For instance, a couple will pay the same as a group of, say, 12.  We give our clients the option of hiring bed linen (duvets and pillows are provided) at €18.00 per bed, which includes one towel per person.  We also give our clients the option of leaving the house as they found it, or paying our caretakers a fee of €75.00 to clean it up to standard when they leave.  From other rental agents we also take a refundable security bond of £150.00, to cover any damage &c.  You now tell us that we have to include bedding in our pricing as standard - this is not possible as we should have to add a charge of €162 to the rental charge irrespective of the number of guests: that is patently unfair.  Unless we can find an equitable way of pricing, we may well have to withdraw our listing which we do not want to do.  So, help!

Mike and Jill **