Improving price transparency for guests

[Stephanie]

Today, CEO Brian Chesky announced that we’re updating how prices are displayed to guests in Airbnb search results. Our goal is to maximize price transparency in places like the U.S., where showing nightly prices (before fees) is currently the travel industry standard.

Guests who currently find nightly prices in search results will be able to switch to showing the total prices. The total price includes the price per night, Airbnb service fee, and any Host fees for cleaning, pets, or extra guests. 

We’re making this change, along with a few others, to help you stay competitive and meet guest expectations. Get the details on the Resource Center. 

Displaying total price and simplifying checkout

What’s your strategy: Build your cleaning costs into your nightly price, or charge a separate cleaning fee?

[Victoria-And-Todd0]

Of course, you do whatever works for your market. With my market and property type/size, a cleaning fee is expected. I get maybe one booking a year from Airbnb so I  really care little about Airbnb's clientele's take on the cleaning fees. But Airbnb trying to dictate to owners what to do just does not sit well with me in general. 

[Marie7084]

Do you use VRBO?  I do.  I find a better client for larger luxury properties usually comes from VRBO.  Smaller properties with a lower price point do better on airbnb.   Different client.

[Marie7084]

I tried that, but lost bookings as my nightly rate was too high when adding in the cleaning fee.   Good luck!

[Pat271]

@Marie7084 That is exactly why I didn’t do it until now. But now, with the total price of the stay being shown more prominently, the nightly rate shouldn’t matter as much to the guest. They’ll see the total price when they look on the maps, etc., and it should compare somewhat similarly to hosts with separate cleaning fees.

The problem has been as you indicated - adding the cleaning fee into the nightly prices was nudging our nightly price higher than the hosts with separate cleaning fees, even though our total price might be competitive with them. The guest only saw the nightly price when they did searches. Now, with the toggle on, they will see the total price of the stay in searches and on the map, which will be much better, IMO. We’ll see.

[Branka-and-Silvia0]

This is what you see if you try to book my place, it is simple and fair:

NIGHTLY PRICE + CLEANING FEE + AIRBNB SERVICE FEE and TOTAL.

Total amount per day and per stay is displayed in the search results while total amount per day is displayed on the map for this period so you immediately know how much you will pay if you stay at my place

I am obligated to pay taxes, my guests don't pay it, Airbnb doesn't collect it.

[Huma0]

We’re making this change, along with a few others, to help you stay competitive and meet guest expectations. 

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Would you mind what those other changes to help us stay competitive and meet guest expectations are? I hope they are not designed to force us to lower prices to rock bottom...

[Huma0]

While I like the idea of more transparent pricing and displaying an upfront total cost, plus guests being able to clearly see the checkout instructions etc., there are a few things here that I have questions about.

"As inflation rates rise, and the threat of a recession looms, travelers are searching for even greater value."

Yes, sure, but aren't hosts the ones that are actually facing the biggest challenges in terms of recession, inflation, rising energy prices etc? Is Airbnb suggesting that we should take the losses and reduce our prices to fund guests' holidays (meanwhile making Airbnb a nice fat profit, with guest fees close to 20%)?

"We need to work together to address these issues."

Erm, what? How is Airbnb working together with us on this? Is it reducing its extortionate fees to help out the poor, cash strapped, holidaying guests?

"Homes that offer the best value in any given region tend to rank higher in search results."

So, how does Airbnb determine what "value" means? I ask this because it seems to prioritise Plus, OMG and other overpriced listings in its search results, rather than the hosts that are offering everyday value...

"Smart Pricing can help take some of the guesswork out of setting a competitive price."

Any experienced host knows that Smart Pricing is a load of nonsense. There are years and years of comments on this CC proving as much. Smart Pricing mostly appears to try to drive hosts to apply the lowest prices, regardless of what the competition/market rates are.

[Gillian166]

"Homes that offer the best value in any given region tend to rank higher in search results."

this won't last for long. after all, McDonald's offers good value for a meal, but it's far from the best, or what travellers actually WANT

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[Jenny]

Hi @Huma0 

I just wanted to let you know that I've made sure to add your detailed feedback and questions to our list, which we'll be sharing with the relevant teams.  

Jenny

[Marie7084]

When you lower prices and number of nights, you get a different kind of client/guest.   Not always the kind of guest you want in your home.

[Laurelle3]

I like the idea of transparency with the fees, for me I state in my desription that I don't charge a cleaning fee and like  @Bridget115 has said the property it is always  left clean and tidy.

I have always charged for extra guests after the first 2 and never had complaints as this is comparitable to hotels but you get an extra bedroom rather than all in one room like a hotel or if you get a second bedroom you pay for it.

I dont charge the host fee because I claim it for my tax deduction each year and most people know in Australia that there is a fee added when you use booking agent and GST is also added at the end afte the sub total for the total. 

Unfortunately, when we are overseas in another country we have a saying "when in Rome do what the Romans do" meaning if I am travelling and if there is an added fees I have to pay for them . My choice if I want to stay there I have to pay it or I don't travel and try and find another place but the results will be the same.

[Gillian166]

@Laurelle3 

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I have always charged for extra guests after the first 2 and never had complaints as this is comparitable to hotels but you get an extra bedroom rather than all in one room like a hotel or if you get a second bedroom you pay for it.

I dont charge the host fee because I claim it for my tax deduction each year and most people know in Australia that there is a fee added when you use booking agent and GST is also added at the end afte the sub total for the total.

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Actually I have had complaints from some about charging more after 2 guests, and they've tried to tell me that they should get a whole 3 bedroom house for $180/night, with 6 guests + 2 infants. They acted as though they'd never ever heard of charging for extra guests.  I have no real response for those people, except I say "it's industry standard" 

In Australia it's illegal to display a price without the gst included, so I'm not sure this feature is "new" for us here.

[Laurelle3]

@Gillian166 I forgot to add in my description I say if there is only to be 2guests and they are using the one bedroom the other bedroom will be blocked as I am the cleaner and I don't charge a cleaning fee. Have only had one person question me and they had extra guests and it said they need to add them to the booking which they did. They said they they thought the had the whole cottage. I think they were trying to pull the wool over my eyes. I am not that stupid.

[Gillian166]

@Laurelle3  I leave the other rooms open but often we won’t have the bed made up. So far no one has breached the arrangement. But the booking makes it clear it’s for 1 room only. 

[Helen744]

Yes Laurelle and that is why an extra guest fee needs to be applied for some peoples homes, because one person or a couple can always book a three bed house , but if they have extra people they need to know that there is an extra fee . I am not sure that leaving out a cleaning fee will prevent people using extra rooms. I ask people to close the door of the rooms they are not using , but its not perfect and they know there is a cleaning fee. H