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?

[Debra300]

@Huma0,

As I said to you before, tell the bargain hunters, "Yes, we can work out a deal.  To make the accommodations equitable for what you will be paying, I will remove the room furniture, you will have to provide your own mifi/hotspot, and you cannot access the common living space and kitchen."

[Huma0]

@Debra300 

Well, I told this one, surely he must have messaged me by mistake because he surely didn't mean to ask me for a 50% discount?!

[Huma0]

Although I've just realised that price tips are telling me to offer a 43% monthly discount on my most popular room, so maybe K was spot on!

Having said that, it's only suggesting a 36% monthly discount for the room he enquired about and 39% for the other room. So, another example of how savvy Airbnb's price tips are. They are telling me to apply the largest discount to the room with the most bookings. Mmmm. 

[Mark116]

@Huma0  Yeah, Airbnb wants us to set our base price at $53.  Come on.  Not even the cheapest flea bag, virus ridden roadside motel is that cheap. Oddly, even though every night including New Year's Eve is now set at our Smart Pricing minimum, while their little stat tab says that there are fewer units and more people searching...less supply and more demand usually means the price goes up not down, but then Airbnb is a bit upside down so perhaps that makes sense. 

[Huma0]

@Mark116 

I only look at the price tips because they make me laugh. Of course, it makes no sense to lower you price if demand is higher. Then again, is it really higher?

I can believe that there are less units on the market now, but the ones that are surely have more availability than normal. Yeah, a lot of people might be looking right now, but looking does not mean booking.

I have had far more enquiries lately for the same room for the same period than I ever got before and yet zero bookings for it. Most are complete time wasters and you can tell they are shopping around.

[Alienor-and-Piers0]

@Huma0 - I saw Airbnb was asking me to do that yesterday too! If I were to do that, it wouldn't even cover the cost of cleaning...let alone all the other overheads like electricity and wifi.

We do have longer-term tenants coming in mid September (not via Airbnb) and that will be a significant decrease in what our usual monthly fee would be, but that's also because it doesn't include cleaning and the tenants will be covering electricity bills and wifi (thank goodness!).

[Huma0]

Sorry, that was supposed to say £700 a month, not night!

Wishful thinking 🙂

[Jill1149]

I would definitely not give in to discount seekers. My price is already cheaper than any hotel in the area because it’s priced at a whopping 40% discount if booked over 30 days. I am also a traveler and would never even entertain the thought of asking a host for a discount. I’ve been getting a lot of bites lately, however no bookings. I can be patient! 

[Huma0]

@Jill1149 

No, I don't ever agree to the extra discounts. I just explain that there is already a long term discount applied and that the nightly rate is fair even before that.

I did get stung about a year ago though by a guest who asked for a discount, was told no, then got her aunt who was a Superhost to message me about it. Again, I politely said no and the guest went ahead and instant booked at the advertised rate. She left me 3* because she said that, although she had really enjoyed her stay, "It was over my original budget." SMH.  

So, I don't think it's enough to just say no to the discount hunters. Sometimes it's a red flag. If someone asks once, because they didn't realise there is already a long term discount, that's fine. If they keep asking, it's not.

I would also never dream of asking a host for a discount, but sometimes it's a cultural thing. In some cultures it's normal to never pay the price that's advertised and haggling is expected. Not here though!

[Huma0]

One guest said she was happy with the extra 10% discount then didn't book because, although I said I would waive the fee for a second person when her boyfriend stayed over from time to time, she expected him to be able to come and go as he pleased. Is that reasonable? She is getting more than 25% off a room that is already priced very low AND expecting to pay for one person when it's actually two.

[Susan1188]

@Huma0 

I have been getting that too, unless I price at way below my normal rates, then I have had people snap it up without asking.  For rates almost 50% my normal going rate.

I used to get mad about this as well, if they asked I would feel like I had to give something!

Nowadays, I see it as a benefit - It allows me to screen guests all the while having instant book on.

My priority is good, problem free guests.  When I get a discount request, I go right on google chrome add on and look at their profile.

I tell them that I'm not so much worried about the price, but I want to make sure they are a good fit for my property, and I ask them to tell me about themselves.  Ask for info and make them work for it.

If they are cordial, respond to my messages, have a good profile, and are potential repeat guests, then I gladly try to make an effort!  Chalking it all up to a 2020 loss that will hopefully pay off.

If they don't even bother to answer, they get no discount!  If they don't fit my criteria for the problem-free guest, neither.

You can tell a lot in a few exchanges with a guest, and a discount request puts the ball on your side for once, at least in terms of getting them to answer and present themselves.

[Huma0]

@Susan1188 

Sorry for the very late response. I only saw your post now.

Yes, my priority has also become good, problem free guests. I am doing everything I can think of to try to ensure this as I did notice that the quality of guests I was getting was very patchy after COVID started. I have always asked questions and tried to weed out the problematic ones even before, but I guess I sometimes missed more subtle red flags. 

Sometimes, I ignore these little red flags and the guest turns out to be great. Most times not though. The last time I hosted a guest who really pushed for an extra discount (which I did not agree to), she left me really low ratings which would have lost me Superhost status after five consecutive years had she not agreed to have the review/ratings removed.

So, no. No more. Guests who push for discounts can just go find a listing within their budget. I don't care if they would rather stay at mine but can't afford it. That's not my problem. 

Since creating this post, which was a while ago now, I have put up my prices a bit, long since stopped agreeing to any additional discounts and turned off instant book. I'm getting as many bookings as ever. Guests are still hit and miss though, although the majority are still great. Unfortunately, even when you ask a lot of questions, sometimes there aren't any red flags until they arrive.

[Susan1188]

I agree, the more you discount, the more they want.
The more you discount, the more they ask for.

Anyone who starts off with "can you give me a discount" without even the minimum: saying hi my name is X i love your property and i'm a mindful and reliable person....  empty profile, zero reviews, just set up in 2022.... I'm going to make them work for it a little bit.  Let them know it's a 2 way street.  Then refuse if the responses are not satisfactory.

Once you accept though, you have to give it your most and treat them like any normal paying guest.  I give it my all.

But... I get everything on the platform.  When they try to say the internet is slow, I'm right there with my remote internet app, and a screenshot on airbnb to prove they are logged on and channel is optimized.  When they try to say there is any other problem: video call immediately to document it.

[Helen3]

Wow @Huma0 

Sorry to hear you are having to put up with all these discount seekers. If anything they should be paying more because of the additional Covid cleaning hosts need to put in place.

The guest wanting to have her boyfriend stay over whenever she liked, without paying for him to be there  on a vastly discounted rate, would have got short shrift from me. Not something I would have considered.

Particularly as you have long term lodgers as well as Airbnb guests, it's really important to know who's in the house. A strange man coming in and out could make others uncomfortable.

Here in Bristol I have had three bookings since we opened and no-one has asked for a discount. I am just charging out at my normal summer rates.

I know it sounds counter-intuitive but have you tried not offering additional discounts ? It may be, the too low pricing for the quality of your lovely home is attracting the discount seekers.

Good luck and I hope things pick up for you soon.

[Huma0]

@Helen3 

I wrongly assumed that everyone was having to discount their rates further. Believe me, I won't be offering any additional discounts in the future.

I do wonder though why I keep being asked for them and others are not experiencing the same. Perhaps it is because the listings are priced too low.

At the moment, I do not have any long-term lodgers and haven't for a while. However, I ALWAYS inform the other Airbnb guests if one of them is having someone stay over, or just visit. I think it's courteous and, as you say, they should not be bumping into some random guy in his towel in the bathroom. No one has ever had a problem with this before and felt it was a completely reasonable request, but then again, they also had to pay for that additional person to stay.

I tried to explain to this guest, but she said, surely after the first time another guest meets her boyfriend, there would be no problem if they bumped into him again... Erm. That was a no from me. Like you, there was no way I was going to agree to this set up. She sounded like a whole lot of trouble. What other rules would she protest to/refuse to abide by because she didn't believe in them?