Price increases unreasonably high on Airbnb

[Neal127]

My partner and I use Airbnb mostly because the prices were very reasonable compared to hotels.  Unfortunately, now we see prices higher than hotels and the accommodations are mediocre at best with lots of rules.  Has anyone else noticed the high price increase on Airbnb?  We thought Airbnb was supposed to be lower than an average 5 star hotel.  We got a four star hotel for 5 days, with a pool and free breakfast for 50% less than we sourced on Airbnb.  Buyer beware, do your research.

[Mike-And-Jane0]

@Neal127 Clearly it always makes sense to check if prices are competitive. Strangely we have actually increased our prices for the coming low season (winter) on the basis that heating will be so expensive (our fuel costs are 3 times what they were 2 years ago). IF people book then great - If they don't we will effectively be shutdown which is better than losing money when guests stay with us.

[Mark116]

@Neal127  Airbnb prices have risen, I would guess due to a number of reasons.  When we started 6+ years ago the only tax involved was any income tax that the host needed to pay, now in our state the occupancy taxes are at least 15-20% on top of the base price.  There are also regulatory burdens that didn't exist a few years ago that hosts must budget for, and lastly, as costs for everything--heat, food, home goods, cleaners--have risen significantly over the last 2 years, it makes sense that Airbnb prices have also increased.

I would agree that a lot of Airbnbs are now priced closer to a hotel cost, but you are still getting a great deal since for about the price of a moderate/budget hotel you are getting, or can get, an entire house or apartment.

[Huma0]

@Neal127 

I agree with what @Mark116 and @Mike-And-Jane0 have posted, but it probably depends on the locations in which you are booking.

Here in the UK, costs have risen exponentially, especially utility bills, but it's not just that. It's everything. My cleaners have put their hourly rate up substantially to account for the rising cost in living. Even toilet paper is a lot more expensive!

The costs of accommodation will ultimately have to reflect the cost of living. You also have to factor in that Airbnb charges a lot in fees, so the host is getting way less than you think they are. I had a discussion about this with a current guest literally minutes ago. She had no idea that so much of what she was paying was in Airbnb fees. In fact, she had no idea that she had paid fees at all!

In terms of hotel comparisons, I do not know how it is elsewhere, but I do know that I offer pretty nice accommodation (have a look at my listings if you have time) that is WAY better than the nearest budget hotel that is super basic. To get a similar room in a hotel in London would cost substantially more, even with the fees added on. You are looking at a youth hostel for the prices I charge.

So, while I am sure there are some airbnbs that are overcharging, do not paint us all with the same brush! You need to shop around. But, when demand is high, some of the better value places will already be booked, which is why you see the higher priced ones.

[Sudsrung0]

@Neal127 

Here in Thailand our electric has gone up 300% everything you need to run a successful airbnb has also gone up the only option is to increase prices, 

We wasnt expecting the electric to go up that much we had many bookings from now till next February, fortunately we had already increased our prices for high season,

I have now for the first time ever added a cleaning fee to offset some of the cost.

I often sit on my computer and look at other places and hotels in my area to get an idea what is going on, I still think airbnb is offering better value than hotels in this area.

And more flexibility than a hotel, 

Come next month is the start of the season for us, Christmas and New Year we have been fully booked for a while people who come here know they have to book early to get a good price so like @Huma0  says the ones that are vacant come December is their prices are to high maybe they will get last minute bookings.

You can take a look at my listing I dont think it's expensive for what you get,

[Sudsrung0]

@Neal127 

I only have one condo on airbnb at the moment and it is a project that is part hotel and part condo's like mine that are privately owned they also advertise on all the OTA's I am cheaper than them and although the apartment is exactly the same design and furniture, we offer a lot more than they do, the amenities in theirs are very basic, 2 knifes, 2 forks and things like that, we supply plenty, Kettle, Toaster, Rice cooker, Coffee machine (Gaggia) plenty of pots and pans and recently I added a Blender, people like to make smoothies, I know they dont have in their units,