New single structure pricing

[Whitney309]

I'm a super host and clearly I'm still confused.  I opted in for the new pricing structure 2 weeks ago.  

So they add on a 15.5% fee to your nightly rate.  However in order to check comps in your area there's no way to tell if you're neighbors are also on that pricing structure. Customer service is telling me to adjust my rates lower .. but are they taking out the 15.5% fee already? If they are taking out the fee just for people who've opted in then if we lower the  nightly rate by 15.5% then we're losing money AND we're not competitive.  I'm very confused. I've not had any bookings since I opted in for this change.  

I also do not set a base rate I make reviews of my nightly rates every 2 weeks due to the high demand in my area for events.  So, am I suppose to make calculations on each night to find out what my rate is without the fee to check comps? This is very frustrating and confusing. Any help? 

[Elaine701]

@Whitney309 

Hi Whitney,

There's no need to panic. The price is the same whether you're on single fee or split fee (presuming you used the pricing tool to adjust it for you)

Others around you won't appear any less expensive than they did previously, and you won't appear to be more expensive than you were previously. 

Also, just a general bit of advice .. it's never a good idea to compete solely on the basis of price. The least desirable guests tend to seek whatever is cheapest. And that often makes them more expensive to host them. 

Anyway, good luck and happy hosting. 

[Shelley159]

Hi @Whitney309 I will also confirm that there's no need to worry. You didn't make a mistake by accepting the fee structure change early. It doesn't matter whether your competitors have accepted it or not, as the total guest charge stays virtually the same (that's why you're not able to tell whether they've switched, and your guests will also not be able to see a noticeable difference in total price).

The prices on your calendar are just higher now because that price is no longer being added on as a service fee to the guest (it's just shifted onto your host calendar).

You can continue to decide your prices and run promotions as always. If you're unsure how to pitch it relative to your competitors, look at the available dates in guest view to see what guests see. We'll all have to get used to seeing the higher prices on the calendar.

After 15 September, it's possible that there may be a brief while where some of your competitors are significantly underpriced (the ones who didn't switch in time). So it's possible guests will have a bargain party then, for a short time. You may see a decrease in bookings until the competitors realise that they're losing a significant amount of money (and/or attracting bad guests) and finally get around to adjusting their prices.