Lowering price

[Justine305]

I'm new to this and wondering if anyone has had any problems after they lowered their price? I have some bookings at a high price, but think it is too high going forward. Wondering if it ever happens that a current reservations (booked high) sees a new price on the listing (low) and then wants a discount too. 

Thanks!

[Sarah977]

@Justine305  If you got bookings at the price you had, why do you think you should lower it? Obviously those guests didn't think it is too expensive for what you offer. Don't just lower your prices to get more bookings- the lower the price, the more likely you are to get problem guests.

And if you are paying any attention to Airbnb's price tips, don't. All experienced hosts ignore them- they are absurdly and insultingly low.

You must have based your pricing on something, yes?

As for your question, yes, sometimes a guest may get their knickers in a knot if they see the pricing go down. But that isn't something to concern yourself with.

Many hosts price higher on weekends, or holidays, and reduce prices to get more business in slow season or to fill specific unbooked dates. If you buy an airline ticket and then there's a seat sale because the airline is trying to fill the plane, you don't get to complain and get it for the sale price.

That's just how business works, supply and demand, and your Airbnb is no different.

[Justine305]

@Sarah977 Thank you for your input. While I did get some bookings, it looks like my price is high for the area and other people might have more bookings. More sure how long it takes usually to fill up a summer schedule. I just opened last week and only have 4 so far.

[Sarah977]

@Justine305 What you need to realize is that you have a new listing with no reviews yet, so well-established places are more likely to get booked because guests can see a history there. 

It took about a month and a half after I first listed in 2016 to get my first booking, then once reviews built up, the bookings really kicked in.

Airbnb puts a 20% discount on new listings, so if you didn't turn that off, guests will already be getting it for 20% discount. 

Many hosts do have a lower rate when they first start out, to attract business, just don't price too low, is all. And unless you have done a simulated booking on your local hosts's listings, you don't really know how much the total will be for the same number of guests that your place houses, with whatever cleaning fees or other charges they have. 

Also just because you see dates blocked out on a calendar doesn't necessarily mean they are booked. They could have blocked dates because they have family or friends coming, are doing some renos, you never know.

[Justine305]

Thanks so much Sarah! I thought the 20% discount is only for the 1st reservation. Is it for more?

[Colleen253]

@Justine305 It's for the first three bookings.

[Bart205]

I started mine February 2020 (somewhere around that time) priced low and totally booked out 3 months, country shut down and everyone canceled, thin I started getting construction crews doing long stays. so with my low price and the long stay discount I wasn't making much money. I raised my price to the highest for comparable homes in the area and have since been booked every weekend I have it open.  we sometimes block weeks off to just not have to clean.

[Sarah977]

@Bart205  It's a strange phenomenon, but I've read lots of posts where instead of lowering prices to attract more bookings, as bookings were down due to Covid travel restrictions, hosts raised their prices instead, to cover the extra pandemic cleaning, and it not only didn't affect bookings, they got more bookings.

The idea that being priced significantly lower than your local competition will translate into more bookings isn't necessarily true. While some guests just look for the cheapest thing out there, those maybe aren't the type of guests you want. And the type of guests you want may assume that if your place is so much cheaper, there must be something less desirable about it.