Are extra discounts the 'new normal'?

[Huma0]

Now that UK calendars have been unblocked and the Government is easing lockdown restrictions, I have started receiving enquiries again from potential guests, but no instant bookings or requests to book so far, probably because every single one is asking me to give them an additional discount/special offer, often with phrasing such as, "given the current circumstances"...

Normally, I never agree to these kinds of requests because I host long-term guests and have always had weekly and monthly discounts built in. Besides that, the rooms are priced very low for what they are even before the discounts. However, given that they have been empty for months and I've lost I don't know how many £thousands in income from cancellations, I have been offering to reduce the already discounted price by a further 10%, which means the guest is getting more than 25% off. I can't go any lower than that because the rooms are already at the minimum nightly price for the foreseeable future (they would be a lot higher in July/August/September under normal circumstances).

Still, this doesn't seem to be good enough for the guests. They appear to want Airbnb rooms for the price of a long-term rental, but a long-term rental normally requires a year's contract, sizeable deposit, paying your own bills/Council Tax and doing your own cleaning! I imagine they would still expect the same standards, service and facilities from the Airbnb as a guest paying full price. Besides, these days there is a lot of extra cleaning involved.

The way I am starting to think about this is, while it is natural that people will bargain hunt knowing the market is at a low point, shouldn't they be supporting small businesses right now instead of taking advantage of those who are struggling? If, unlike me, you are lucky enough to still have your job (most of the enquiries are from guests coming to London for work) or can afford to holiday for weeks at a time, is it fair to expect hosts who have lost huge amounts of income to subsidise your vacation/lifestyle? It's not very ethical nor morally sound. I know the guests are not seeing it from this perspective, but that's what it boils down to!

What's your opinion? Would you offer higher discounts because it's better to have some income than none, or would you stand your ground?

[Sarah977]

@Huma0  Don't let them wear you down. Seems guests have the idea now that hosts are desperate for bookings and will practically pay them to stay. Also lots of reports of a plethora of guests with just set-up profiles, which haven't even bothered to write up anything about themselves on their profile and have zero reviews.

 You know how much you have to charge to make it worth your while to host. Stand your ground- I like the wording @Inna22 has regarding discounts.

 And guests who insist on having things their way are not guests you want to have. I can just envision Miss Entitled's boyfriend showing up after everyone has gone to bed, waking everyone up, taking hour-long hot showers, grabbing a clean towel and leaving it wadded up on the floor, and raiding the fridge in the middle of the night. All for free, of course, because he isn't "living there".

[Huma0]

Thanks for your support @Sarah977/

Yes, some of these guests are new profiles with no reviews etc. but others are experienced Airbnb users. I wonder if the latter normally ask for discounts.

The more I spoke to Miss Entitled, the more trouble she seemed. Every time I gave an inch, she wanted another mile...

[Russell49]

With my situation, anytime I open the calendar I get booked. I will not be accepting fresh 0 review profiles. No way, no how. I have had too many bad experiences lately with these types and demand people who are more experienced and "tuned in" to what AirBnB is. I will block my days before letting them stay.

[Colleen253]

@Huma0   I've stood my ground and said no to discounts. My price is where it normally is and bookings have been coming in just fine. I inform guests that due to Covid, our cleaning costs have increased substantially, therefore we are thinking we might actually have to raise our rates! And if it's a shorter stay, I say that we do often arrange a special price for longer stays but not shorter ones. I tell them thanks for their interest and understanding, and 'take care'! As in, I'm good if you go elsewhere, thank you, bye! The few discount hunters I've had, I thought would go away, but they ended up booking and all turned out fine, though I was hesitant to accept and cringing all the while. 

[Huma0]

Thanks @Colleen253 .

Yes, I think I am going to stand my ground. I reckon people are just asking for extra money off because they think they can, but if they are serious about booking the listing, they are going to do so anyway because they know it's already good value.

[Huma0]

Quick update. So, out of the enquiries I got recently, I agreed to an extra 10% discount, except for the guy who messaged this morning. I was kind of getting sick of it by this point so just told him there was already a long-term discount and that the room was priced much lower than normal.

Guess what? He booked! Maybe it's just a coincidence as I don't exactly have a big sample to compare to, but the only person I said no to in regards to extra discounts was the only peson who actually booked...

[Jessica-and-Henry0]

@Huma0 

I had this one inquiry where the potential guest continued to push for an additional discount (exchange student long-term stay) even after I explained a long-term discount (I think it was 20~21%) had already been applied. I found her attitude rude so I told her she should do her homework and see if she could find a place in the same area that provided the same level of amenities at the same price range BEFORE *inappropriately*  asking for discounts, told her "I completely understand if you choose to book somewhere else that better suits your budget" and left it at that. She contacted me a few days later saying she wants to book but the dates were blocked, could I please open them - I (gleefully) told her they were *blocked* because someone else already booked 😆 

No matter how low you bring your prices down, there will always be people who want extra discounts. I personally think you should ignore requests for further discounts and go with the "My rates are already good value with a significant (long-term) discount already applied so NO to the additional discount. Good luck finding a place that better suits your budget." and just leave it at that~~ 

[Huma0]

@Jessica-and-Henry0 

Yes, that's exactly what I've always done. Like you, I already have the long-term discounts, so just remind them of that and that the room is already competitively priced.

However, given the current situation and not having had any bookings in months, I thought offering an additional 10% might be worthwhile and perhaps the only way to get bookings seeing as right now 100% of enquiries are asking for a discount when, in the past, it was only the occasional one.

I've changed my mind now though and will go back to my original strategy. That's what I did with the guy who messaged yesterday and he went ahead and booked without an extra discount.

[Debra300]

@Huma0,

Everyone has given you fantastic feedback and shared experiences. We have been fortunate since we re-opened my apartment on July 1 with a slightly higher nightly rate and cleaning fee.  Rather quickly, we received three reservations for between two and four nights, and none of them inquired about a discount.  It appears that the hosts with comparable listings in our immediate area did not lower their rates.

It's been fun getting back into the hosting groove, but starting August 1, the minimum nights stay is 14 nights and maximum is 30, because we will not have the time to frequently clean and turn over the apartment.  We have a short booking period of just three months into the future, because we don't want someone blocking our calendar for several just to cancel a few days before the scheduled arrival date.

[Huma0]

@Debra300 

That's very interesting to hear. I wonder why in some areas people are expecting bargains and not in others. I suppose it depends on supply/demand. In London there are an insane amount of Airbnbs, but it never stopped me being fully booked before all of this because I am priced very competitively for the standard/location.

I have not yet checked what comparable Airbnbs in my area are charging these days because everyone's calendars were blocked. I do know that before COVID, I was a lot cheaper than the competition. I will have a look to see if that is still the case, but even if they have really slashed their prices, it makes no sense for me to lower my rates to the point where I could get the same from a long-term lodger who makes their own bed!

[Debra300]

@Huma0,

I don't recommend that you lower your prices, but should check your marketplace. I have a feeling that since you were/may be priced significantly lower than comparable Airbnb listings that guests think you are desperate, and are trying to take advantage of that assumption.  If you offer rock bottom prices, you will attract rock bottom guests. 

Also, giving additional discounts can shift the power dynamic in your home. Existing guests may be resent that someone received a better than what they paid. The guests who received the discount may have a further sense of entitlement, because they think that you need them, and challenge your house rules and authority to run your home as you please.

I wish you all the best.

[Huma0]

Thanks for your advice @Debra300 . Those are all good points. Yes, certainly I need to take another look at the competition as I haven't checked recently. I did worry that if the girl I agreed to give a discount to booked a different room, her stay would overlap with the guy who I said no to RE a discount and they may well end up discussing it! Anyway, it doesn't look like she will book as she has gone silent. From now on, I won't be offering any additional discounts.

Interesting point RE the sense of entitlement too. I think you are probably right. I never gave additional discounts before so have no experience of how guests who receive them would behave. I have only ever given them to existing guests as a thank you for feeding the cats when I was away and that wasn't something they asked for but a goodwill gesture from me.

[Tony-And-Una0]

We've have had 15 bookings since we reopened. Quite pleased

We have reduced our prices by about 20% - just being realistic. But we increased the minimum length of stay from two to four nights to reduce cleaning and laundry costs etc and to allow  a gap between  bookings.

We don't expect to make anything near the normal high season income, but it's better than we expected in the bleak days of April and May.

Fingers crossed we can all maintain the momentum.

[Huma0]

@Tony-And-Una0 

It's starting to sound more and more that I was being a bit pessimistic about bookings, so let's see. Good to hear you are getting so many. Yes, that definitely makes sense RE the minimum stay to account for cleaning. What about leaving a gap between guests? I don't take very last minute bookings but I also have never selected to have a gap inbetween guests. Perhaps now would be a good time to reconsider that.

Also, I naively thought that the cleaners I was using before lockdown would be available because business must be slow right now, but no, they are fully booked so looks like I will have to do all that extra cleaning myself and I know that it takes me ages...

[Debra300]

@Huma0,

I recommend that you implement a booking buffer between reservations if you are going to take on the cleaning duties.