Airbnb Insists 10+10=30

[BenkaandKeith0]

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 

[Inna22]

@BenkaandKeith0 I have ran a promotion tool experiment on two very similar listings- one using the tool and one just lowering a price manually. For example, for a $200 night one will show %20 off and the other a price of $160. There was no difference in booking activity.

Instead, I manually lower the price twice a week. I have read somewhere that Airbnb algorithm favors active hosts and playing with the prices is one of the ways to appear active. This only takes 10 minutes. For reference, I have 4 listings. This also gives me an opportunity to quickly glance at my trends for the next few weeks

[BenkaandKeith0]

@Inna22  we have 3 listings and have been comparing the price adjustments among them and inside of each listing now for 3 years, using the Promotions Tool continuously, with all still vacant nights. Promotions booked us 70-85% of unbooked nights in the season and from 50-75% outside of the highest season. No other tool has came close to filling up so many less desired still available nights, with max 20% discounts. So the goal was achieved by using this tool and over 30% of hosting income was generated by the Promo tool when was functioning. One would think Aribnb should be interested in making darn thing functional again without us begging for their action...

It is sad to see that Airbnb's algorithm is blamed for all the late stupidities the company is applying and no employee is held accountable for putting those dis functionalities in place.

[Gillian166]

@BenkaandKeith0  yes I agree. I want to use this tool, but then it decides to make the final price even lower, despite telling me a different range that I've set!.  In fact it's $10-15 lower than what I would like to offer. I know why they do it this way, but I have my price set at $210 and somehow a 10% discount comes down to $172.  I've gone back to last minute discount, although I prefer the option with the line through it, so it looks like it's a discount.

[BenkaandKeith0]

Great point. And yes, you are just better off abandoning Promotions altogether. The whole situation makes us wonder if ruining a perfect tool is just another way step toward eliminating it, with explanation not enough hosts used it 😞

[Mike-And-Jane0]

@BenkaandKeith0 I don't know how the system works but presumably it is protecting against false discounts. As such it discounts from the rate nights were actually sold at rather than the price set per night. As such a 20% discount when first applied might be 20%. A later discount will be greater because the first discounted rate will feature in the setting of the non-discounted rate. It feels to me that this algorithm could spiral downwards in price very quickly.

[BenkaandKeith0]

There is no protecting anyone against false discounts if the rates are calculated from the BASE RATE. It should be protected against manipulation by taking the median price from the same 60 or 90 days window frame, but must be from the BASE RATE.