@Mike-And-Jane0 @Colleen253 @Brian2036
Over the years I've priced for the maximum number I can accommodate, this does make things expensive for couples and at the moment, larger groups don't seem to be travelling so I priced per 2 plus extras which broadens the target audience.
Earlier in the year I had listings with a 2 bedroom option and another with a 3 bedroom option this year. However, as hard as it might be to believe, I ended up having to get Airbnb to cancel one reservation shortly after it was made because of the abuse I was receiving from the guest who booked the 2 bedroom listing and then insisted that she was entitled to 3 bedrooms for all her Guests (which numbered 2 on the reservation). She'd clearly found both listings and booked the cheaper option and then thought she'd try it on, admitting that her party was larger than the 2 for whom she'd booked.
Regardless, if the Guest brings extras no matter how many are on the original reservation, if the Guest refuses to pay for these, then the problem remains no matter what format the listing might take.
For me, the worrying part is the message that is being given to Guests by Airbnb - that it's ok to break the Terms of Service and the House Rules and Airbnb will do no more than have a quiet word and the Guest can carry on as before. It's also slightly worrying that Airbnb doesn't seem concerned when the Guest declines to pay for the extras people, this exacerbates the issue with which pricing model Hosts should use.
It becomes more difficult because the Extra Guest Fee has no flexibility in the extra Guest price and seasonal rates can't be applied to it.