Average price calculation

[Ryan2352]

Does anyone know how ABB calculates its average price?  I have the same exact pricing on ABB and VRBO (via PriceLabs and my PMS) and for some reason ABB is over $100 more per night, as checked in private browsing mode, with no dates applied.  I've tried to figure it out before, pulled in six months of prices manually and ran various calculations, but to no avail.

I'm sure it's going to be like "Arby's secret sauce" and a closely guarded secret, but curious if anyone has figured it out.

[Ryan2352]

Another of my listings has nearly a $900/n difference in average price between the two.  Someone on Facebook thought that maybe ABB is factoring in the cleaning and/or service charges into the nightly rate (but kindly not telling anyone... AGAIN).  This is really putting our prices into the stratosphere.  When you put in dates, your prices come down to normal and you have the familiar cleaning and service fee addons.  But who's going to go there with these super inflated prices to begin with?  Especially if they're smart enough to shop around on VRBO, Houfy or search for your website directly.

[Elaine701]

@Ryan2352 

On Airbnb, the price guests pay is whatever you've set, +15% commission (if you're on the old split commission plan) , + occupancy tax (if applicable) + any other extras such as cleaning charges. That's what guests pay. And as far as I can tell, that's the price that's shown. 

On other platforms the breakdown and commission may be different. And the price shown on the listing may not include commissions or taxes or extras such as cleaning. The guest finds this out at final booking.

Also on VRBO for example, you need to add 3% to your base price because they charge the host an additional 3% for "payment processing" plus another (1.5%?) for "trip insurance", which apparently varies by region. Both are somewhat "hidden" charges to the host. "Trip insurance" has so far never been explained to me, and others here have said they've never seen it, but VRBO charges me for it. 

I've given up on VRBO anyway. I'm lucky to get 2 bookings per year from them. It's probably different in North America, since they're better known. And per the previously indicated hidden charges, I'm priced about 5% higher on VRBO than Airbnb, so that probably adds some drag too. 

However, I'm getting increasingly good results on a boutique platform that offers listings only here in Mallorca, and targets German clientele. They actually have very good host support and vet their guests extensively, so I don't have to. And they're bringing in quite a few good bookings. So if you have a smaller, specialty outfit that specialises in your area and has good support, you might give them a shot. 

[Ryan2352]

Thanks @Elaine701, I think things run a bit different in the states.  Out here ABB only charges us 3%, the rest (about 15%) is guest paid.  With VRBO, they charge 3% to the host as well and I handle my own card processing.  Trip insurance is paid by the guest.

The problem is, is that a month ago my two prices would be within $10 or so of each other.  Today they're $200 and $900 apart.  It appears that Air b&B has yet again decided to beta test something on the front end without telling anyone.

Guests are now seeing these prices ($1,900 for a $1,000/n property and $548 for a $400/n property) and thinking "**bleep**, I have to pay cleaning AND services fees ON TOP OF THAT???"  They don't realize that once they get into the detail screen and punch in dates that the prices are accurate again.  If you're not shopping with specific dates in mind, this can really cause problems.

[Elaine701]

@Ryan2352 @Yes, well, I was only pointing out that >your< price, let's say 100, is going to be published to the guest as 115. They take 3% from your 100, so you get 97, but the guest is shown a price of 115 + cleaning fees + tourist tax (if applicable).

So, if you're 100 on VRBO, the price they advertise may be 100 (much less than Airbnb). But then, plus plus plus at booking time. 

Otherwise, I'm not sure why Airbnb up the base price so much, unless there's some sort of a glitch. You're not using "smart pricing" are you? That's dangerous. 

[Sarah977]

@Ryan2352  The service fee split has nothing to do with being in the US. Some hosts, who are software connected are forced into using tbe "host paysall service fees", regardless of where they operate. But that option is also now available to any host who wants to use it, or you can stick with the split fees.

I really don't understand what you are talking about re your nightly pricing. As Elaine points out, hosts are the ones who control what they charge, not Airbnb. If you are using smart pricing turn it off and set your prices yourself.

[Ryan2352]

@Sarah977 

Host pays all is not something that's done even for connected users in the states, as far as I'm aware.  I'm connected to Lodgify and it's never even been an option for me (not that I'd choose that!).

What I'm saying about the rates is this:
My rates for house #2 vary between $425 and $510 as set by Pricelabs.  Pricelabs feeds into Lodgify (my PMS), which then feeds the prices to Air B&B and VRBO.

When I pull up my property's page (right now, 1315 on 12/25) on Air B&B it shows the average nightly rate as being $595.  When I pull it up on VRBO, it shows $492.  Both have the EXACT SAME PRICES as set by my PMS.  If I put in dates into both systems, the prices show identical.

On property #1 (same tech stack and setup, but prices between $1,000 and $1,200) there is almost a $900 spread and AB&B is showing the prices WELL above where they are set.

My properties on a dateless search are showing up well above their actual nightly rate and is nothing I can control.  Someone who is shopping will see my nearly $2,000/n home and not want to click forward because they think the service fees and cleaning costs will be on top of that.

[Lisa723]

@Ryan2352  I do not know the answer to your question. However, if I select some nights in June on your more expensive listing I get this message

Lower price.

Your dates are $998 less than the avg. nightly rate of the last 60 days.

Could it be showing the average nightly rate of the last 60 days?

[Lisa723]

@Ryan2352 previewing my own listings it looks like in fact they are now showing the average nightly rate of the last 60 days. I can sort of imagine why they would do this, as it's a realistic snapshot of what guests are currently paying. Probably an improvement over the previous practice of showing only the lowest available rate for a listing. But really dumb for listings that are seasonally priced and book months in advance (like mine, and presumably yours). In the summer guests thinking about winter stays will see prices way too high, and in the winter guests thinking about summer stays will see prices way too low.

[Elaine701]

@Ryan2352 

It appears may be an issue with your PMS. I tried using one once. It didn't go well. 

@Lisa723 

We have two listings.. A summer listing and a winter listing. Mainly because the summer price model is "one rate for whole house" while the winter model is "price per person", which you can't change on a seasonal basis on a single listing.