New Upfront Pricing is BAD

[Sean119]

This is a bad idea.   There is actually LESS information for the guest to see charges and how they relate. AirBnb will see less bookings as a result.  In a recent survey AirBnb asked "what would it take to solely list with AirBnb"...this is perfect reason why we currently DON'T.  Our listing will get more bookings @ $299/night versus the new "upfront" price listed @ $398.  

[Emilia42]

@Sean119 Can you take a screenshot of how this pricing structure looks? I am not seeing it yet.

[Sean119]

The price next to the listing when you search dates:

The not so helpful itemization when you click on the "Fees Included":

[Christie-and-Clint0]

I agree. You should be able to click the hyperlink to "Fees Included" and see an itemized breakdown including:

Cleaning Fee, Airbnb Guest Fees, Pet Fee, Additional Guest Fees etc..

By not being able to see this itemization, it appears that Airbnb is trying to disguise their fees. The consumer will most likely feel the host is controlling the charges.

A hefty upfront rate is only going to turn consumers away who might otherwise open the listing and consider it. Unfortunately bookings will only go down with this pricing structure as cost is the first trigger when appealing to travelers:(

[Tierra-And-Yasmin0]

Definitely agree

[Nanette42]

As a former accountant, I would say it is a race to the bottom on host pricing? Way its done. Competition. 

Its not always about lowest price. I would rather host a  higher price per guest, lower wear and tear, lower cost, I can afford higher quality, higher demand, higher price.

Our true enemy is thought patterns on price. Break down your costs, figure a profit that keeps you motivated. Supply demand will let us know 🙂

[Christie-and-Clint0]

@Emilia42 They say they are testing it in "certain markets" so you may not be affected by it yet. Lucky for you!

[Brian2036]

@Sean119 

That is precisely my initial reaction.

Guests who shop around are likely to go with the lowest advertised price, despite the fine print which usually says something like “price does not include taxes, fees, etc.”

Guest sees that (maybe) and thinks, “Oh well, that can’t be much,” and then is aggrieved to find that the bottom line is a whole lot more than they thought it would be.

 I think the HONEST thing to do is show the actual total price up front but if the competition isn’t doing it then it’s going to cost you.

I do shop around and after comparing Airbnb prices to the competition for the same or apparently equivalent properties…I always booked elsewhere.

 I never could see that Airbnb was offering me (as a guest) anything more than the other platforms.

As a host I am willing to pay for their advertising services but as soon as another platform is able to do as well or better, what do you suppose I will do?

My loyalty to Airbnb equals their loyalty to me and other hosts.

[Mike2432]

I completely agree with your sentiments. Hotels would never posts rates that include fees and taxes. 

[Jan248]

I complete agree that hotels would never post rates that included fees and taxes... We owned a hotel for 20 years and the pricing was posted as the base price, double occupancy, before taxes.  

The only reason I can see for Airbnb changing to UPFRONT PRICING  is that they can hide their fees when guests are looking to book... For instance my listing at $125 per night looks like it is $166 per night.  The difference of course being the Airbnb fee.

In addition I used the price breakdown as a tool with guests to walk them through what they were paying before they finalized the booking.  Now that tool is not available.

When I use Airbnb as a guests I want to compare the cleaning fees and extra guest fees I would be paying.  

Clearly the information is available and use to be provided and I don't think that hosts should let Airbnb hide their fees under something clearly misnamed "UPFRONT" it is certainly not upfront as far as Airbnb fees are concerned.

[Joana168]

.

[Brian2036]

@Sean119 @Jan248 

One reason why people (including me) don’t book through Airbnb is because their fees are higher than other platforms.

So this is a way to, once again, blame it on the hosts.

Guests are naturally going to assume that the host gets the entire amount.

[Debra300]

Upfront pricing appear a little differently for my listings in two different countries.  The search results for my St. Lucia space do display the upfront price in two places, and the link below the total price clearly states it includes fees before taxes. 

When you click the link, the pop-up says taxes will be added at checkout.  

There is no price breakdown on the listing details page.  A guest must click the Reserve button to go to the checkout page and see the taxes.  Currently, in St. Lucia there are no additional taxes to be collected.  I have the host paid service structure, and do not charge a separate cleaning fee, because I want the total price displayed to be exactly that.

In my Georgia listing the placement the words Upfront pricing and the Fees included link are not next to each other like my other listings.  So, this appears to an A page vs. B page type of testing.

The message in the pop up window is the same as my other listings.

Like I mentioned earlier, there no longer is a break down of fees and taxes on the listing's detail page.  Just the total "upfront" price.

Guests must click the Reserve button to go to the checkout page, and see the taxes.  Since this listing is in the US, and people are used to seeing taxes separately, to me this is not really a big issue. 

Similarly, Booking has always required a call to action to see before displaying the fees and tax breakdown.

You must click the I'll Reserve button to be taken to the checkout page to see the individual fees and taxes (no taxes in St. Lucia).

One of the primary benefits of hosting on other platforms is that a host can collect a damages deposit, and has the guests credit card details.  Many hosts have said that they charge higher rates and fees on Airbnb versus other platforms due to the lack of a true damages deposit being collected.  The truth is that I rarely collect the deposit (so I don't have to do a refund later), but the knowledge that I have the guests credit card details helps to modify their behavior.  I do charge a service fee which covers the credit card processing costs.

This year, the reservations from Booking is 200% more than what I've received from Airbnb.  Typically, they each represented about 30% of my bookings.  It appears that my guests prefer Booking.  Instant booking is enabled for my Airbnb listings, and the cancellation policy is similar on both platforms, 30 days prior to check-in for a full refund.

[Jan248]

Let's see if Airbnb will address the issue and if hosts can have a real say with Airbnb... I find it underhanded of them to hide their fees in this way.  Hosts are willing to show their fees, why not Airbnb...

[Sean119]

LOL, now they removed the pricing entirely, both next to the listing and on the map.  Even when you click on the house icons they have no pricing.  Seriously, this is a BAD IDEA.