We've been using the promotion tool since it was launched, are familiar with its features and have seen the benefits to the community (more booked nights, more profit to the company, and discounts for guests). But the changes this spring have turned an excellent tool into a dysfunctional feature. The feedback from the company: "All is good, the tool is functioning as it should." Well, does not and here is why.
To bring in more revenue, we've successfully been using a graduated system of discounts, with larger percentages offered on unbooked nights as the time gets closer. We start with a 10% discount one month out. Two weeks later we increase to 15%, with a final 20% one-week prior. This is to stimulate guests to book, and for us hosts to benefit from the "perks" coming with higher percentage discounts (this manual price adjustments through Special Offers has proven 87% more successful over automated option of Smart Pricing offered by the company).
Unfortunately, Airbnb's changes are now counterproductive by the arbitrary calculation of “median pricing.” For instance, our base rate is $249. A 15% discount brings it to $211. A 20% discount should be $199, but due to their median pricing miscalculations, changing our discount to 20% results in a $170 nightly rate. This creates a 30% discount, not 20%. Our “median” rate is being calculated at around $195/night, when the lowest we ever offer is 20% off, so $199.
On top of that, “perks” are based on discounts to this arbitrary median rate, instead of discounts off the base rate. By offering graduated discounts, the “perks” Airbnb ties to promotional rates can’t actually be earned without offering much higher discounts than they advertise. Example: if we start with a 10% discount, then adjust to a 20%, Airbnb only sees it as a 10% (or less) discount, robbing us of the “perks.”
SOLUTIONS:
1. Promotion tool must be corrected to calculate off of MEDIAN BASE PRICE, not some arbitrary median rate, as it was before the change when the tool still served the purpose.
2. Promotion tool should be upgraded to allow promotions to be MODIFIED, instead of necessitating the deletion of one promotion, before another one for the same day can be applied.
3. Airbnb return to the flexible, solution-oriented company they used to be & stop trying to sell us on flawed policies and dysfunctional tools.
WE DESPERATELY NEED THIS TOOL SERVING THE PURPOSE AGAIN. AS OF NOW WE AND DOZENS OF SUPERHOSTS FROM AROUND THE WORLD DROPPED USING IT COMPLETELY. HALF OF YEAR OF REPORTING THROUGH FEEDBACKS HAVEN'T CHANGED ANYTHING.
@Catherine-Powell