Price increases

Answered!
Kathryn599
Level 2
Northampton, United Kingdom

Price increases

Hi.

 

Is anyone thinking of increasing their prices with the new energy price caps coming in?

 

If so how much more are you thinking of?

Top Answer
Huma0
Level 10
London, United Kingdom

@Richard531 

 

I have to agree with @Helen3 here. I am surprised that energy prices have not increased in any significant way in your neck of the woods given that Europe is suffering a massive energy crisis, but it would explain why my recent guests from California were totally unaware of this issue even though it makes headline news every day in the UK.

 

If you don't believe me, the information is available on our parliament website: https://commonslibrary.parliament.uk/research-briefings/cbp-9491/

 

"The energy price cap increased by 12% in October 2021, 54% in April 2022 and is due to increase by 80% in October 2022 (gas by 91%, electricity by 70%). A further large price rise in January is also widely expected."

 

The BBC has reported that the average household will be paying £3,549 per annum from October (my energy supplier has also confirmed that my bills will be around this level), which means that around 40% of households will be thrown into fuel poverty. Many people are planning to simply go without heat this winter and, as I am sure you know, heating is a necessity during UK winters.

 

There are also predictions that, from January, the average household will be paying £5,386 per annum, with further price rises occurring after that. If these figures are correct, the majority of the population will experience fuel poverty.

 

I can totally see why many hosts are considering simply shutting down for the colder months because, if you cannot charge prices that cover these costs, what is the point? I don't agree that making $1 profit is better than $0 profit unless you are also factoring in a living wage for the host for the hours they spend on each stay. Even then...

 

It's not just energy. My water bill went up £100 and I expect that to rise further. Rents have gone up. My cleaners put up their fees substantially because they also have to cope. We are experiencing high inflation and everything is becoming more expensive, even toilet paper. I am not joking. 

 

Even if the competition is not yet thinking of increasing nightly rates because they are scared of losing bookings, sooner or later they will need to or they will need to shut down, unless they already had a high enough profit margin to cope with these increases. I know that I do not.

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33 Replies 33
Kathryn599
Level 2
Northampton, United Kingdom

Exactly!

Sybe
Former Community Manager
Former Community Manager
Terneuzen, Netherlands

Hey everyone @Kathryn599 @Debra300 @Emilia42 @Branka-and-Silvia0 @Emiel1 @Gordon0 @Richard531 @Helen3 @Tony-And-Una0 @Gillian166 @Amanda660 

 

Thank you for your comments on this. I know this is an older post already, but I wanted to let you know that we’ve recently started a topic regarding energy costs and we’re collecting tips on how to manage them. We’d love to get your input too, so please don’t hesitate and come share your experiences and advice!

 

You can find my post here:

https://community.withairbnb.com/t5/Hosting/Has-your-Hosting-adapted-due-to-the-energy-crisis/td-p/1...

 

Thanks!

Sybe

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Please follow the Community Guidelines // Volg de communityrichtlijnen

Branka-and-Silvia0
Level 10
Zagreb, Croatia

Well, my guests checked out today and left the thermostat on max 30 C ( 86 F) They are not the first ones...

Interestingly... during the summer I often host penguins who set A/C to 17 C

 

My Airbnb bills are usually 3x higher than my own, at home, even though I don't have guests 30 nights/month

Our planet doesn't have a chance...

Debra300
Top Contributor
Gros Islet, Saint Lucia

One thing that persons who do not live in the US should take into consideration is that heating energy options and costs vary across the country.  When a US based person makes a post about the energy costs at their place, their situation cannot be extrapolated to represent what's happening across the country, because the types, costs and providers of heating fuel greatly vary.

 

I grew up in northern California, and the primary, often the only, provider for electricity and gas was Pacific Gas and Electricity (PG&E).  The state had a regulatory board which set limits that could be charged for the utilities, but there wasn't a method for customers to negotiate rates or enter contracts with the utility company.

 

When I moved across the country to Georgia, there was just one electricity provider for my area (Georgia Southern), but  multiple providers to choose for gas.  The rates were different, and customers usually entered year-long purchase contracts.  

 

The use of heating oil is prevalent in the northern US, but not the rest of the country.  Prices will often be impacted by oil barrel costs that are often mentioned in the news, and customers usually enter seasonal or yearly contracts.

 

Boiler heat is common in apartment buildings in northeastern cities like New York and Boston, and heating service is included in the rent.  The main heating service is usually managed by the building superintendent, and the cost is spread among several dwellings.

 

Many folks rely upon wood to heat their homes, and there will be regional differences in the cost, usually based availability.

 

The country is very large and geophically the usage of heating will be different.  For example, right now in some parts it's already reaching freezing temperatures in the evening, and other parts folks can fry an egg on the asphalt.

Don't just believe what I say, check the Airbnb Help Center