Guests force Price Wars

[Linda1161]

This recommendation and request for Airbnb to review this constant problem Hosts are experiencing from Guests. 

I lay awake tonight and want to provide a Host point of view to Airbnb because it is a true shame that Host's do not receive fair treatment from Airbnb. We have continuous guidelines implemented by Airbnb, ie. respond within 24 hours, do this and don't do that etc. I fail to understand why in these difficult times GUESTS are not penalised for sending nonsense inquiries on our properties.

As a Host we are already struggling with loss of money finding it difficult to carry the expenses on our properties. I am referring to the latest inquiry I received from Pradesh Kumar for 2 Guests Jan 31 to May 1st booking. This man wastes my time and sends me a request to offer me $450.00 less of the total $1,950 per month for a 2 bedroom apartment in Mississauga blaming the Airbnb charges that he has to pay and expecting me to pay his fees stating that his budget is only $1,500.

Why is this Guest not penalised for doing this? Hosts should not be harassed by  Guests who do this, its not only insulting it is highway robbery.  Airbnb knows full well that Guests have to book a property for their stay, it is not a case of losing a Guests.  It is more about  Airbnb allowing Guests the ability to price war Hosts and putting the heat making Hosts combat each other.  I have not received an inquiry on my listing for over 2 months and now I am 2 weeks away from his requested booking period.  It makes me as a Host vulnerable to this abuse because it is allowed and Airbnb has not implemented guidelines to stop it. 

The only way to prevent this is for Airbnb to penalize Guest who do this! Stop the price wars and protect your HOSTS! Airbnb will still get the bookings, Guests need to find accommodations, they can afford it, they just don't want to pay and if Airbnb implements strategies to stop this Airbnb will make more fees on these bookings, increasing revenue therefore increasing Stock price.   Airbnb will earn more money not lose money and it allows Airbnb to be fair with their Hosts finally because so far throughout Covid Airbnb has not been fair to Hosts.   

We do not have the bookings to keep our Super Host Status, I lost mine.  We get hit by unfair manipulating Guests who manouever the system for free accommodations who then lie through their teeth to get a discount or free nights stays.  Then they have the ability to provide a damaging false review in turn hurting honest sincere hardworking Hosts.  I know I had it done to me in this very same apartment. I had Guests from Hell and still to this day have hurt me with their dishonest review.      

Taking away all of our money on 100% guarantee refunds to Guests was brutally unfair and dictated complete ignorance to a Hosts position. It would have been decent to split the costs 50%/50% not force Hosts to take the full burden. Hosts did not create this pandemic and we are all suffering through it. My bookings are down and requests for bookings are few and far between no matter how low I go on price. I don't even cover my expenses and there is no end in sight here in Ontario.

Again vaccines are delayed. I would like to think that Airbnb Quality Control takes time to read these messages, do you?? Or is this fallen on deaf ears. It is a simple report button Airbnb can put on their system so Hosts can trigger a comment to the Guest advising them they are unreasonable with their request and a note will now go onto their profile. If that Guest does it continually why does Airbnb Allow that Guest to abuse the goodwill of a Host. I am confident they will stop this nonsense of trying to swindle Host after Hosts with request for outrageous discounts.

If this is not the place to submit this recommendation please advise where I can send this. I have copied it.

"3:50 PM

Hi Linda,
Is this a basement apartment?
We are planning for a three months stay at your place.

Can you please give us a discount on the price? 1500 CAD a month would suit our budget.

I will have to pay Airbnb charges in addition to that.
Thanks."

[Linda1161]

Hi @Emilia42  thank  you for your nice text.  I wholeheartedly agree with you.  I do the same and refuse these Guests.  I just really wish there was a system in place to monitor these Guests who ask for discounts of 20% and higher.  It would seriously help us as respectful Hosts.  Take care, be safe.  I appreciate your time : ) 

[Sarah977]

@Linda1161  Many types of businesses get customers who ask for some kind of price reduction. It goes with the territory of running a business.

I don't see how it creates "price wars"- as others have pointed out, all you have to do is send a saved message which essentially says no. 

[Linda1161]

Hi @Sarah977   It really doesn't go with the Territory, it has become an acceptable problem because it is not being addressed by Hosts.  We as Hosts should not be in this position.  As I described to others, any real estate market prices will decline or increase depending on the latest sales.  When there is high inventory Buyers have better ability to negotiate lower prices.  In this case prices are already posted on our Listings and Hosts can also offer discounts as they choose.  These prices should be in line with market and the product then carries its own for booking depending on design, layout, features, photos and amenities etc.  Guests can book within their budget but they want more value for the money so they go to higher priced properties and try to get 25% off.  If that Host accepts this discount then the market is impacted with a lower price booking which generates a lower value for everyone else. Guests will book, they need accommodations.  I am suggesting WE as Hosts should not be pushed in the corner.  If a Guests shows they are doing this continually then it needs to be on their record and measures need to be taken.  Their actions hurt all Hosts.  This behaviour is not good business, once a request is 20% or more reduction request is just plain greed and insincerity to the Host which inevitably creates price wars.  Can you imagine if every Guest in the system does this???  Think about the results of that please.  

[Emilia42]

@Linda1161 How do you know that hosts ARE succumbing to the discount seekers? What makes you think these hosts the majority? I regularly scan through my archive messages to see if inquirers ended up booking with other hosts in my area. Nine times out of 10 their profile still remains empty. 

[Linda1161]

@Hi @Emilia42   When Hosts accept Guests and offer 25% discounts,  the Airbnb recommended price is lowered.  Condos Boards are preventing STR so Hosts have to book 28 days and over.    I'll explain, hope this helps Airbnb suggested price of 1 bedroom luxury condo is $35 per night = $1,050 per month yet an  unfurnished rental is $1,800 for long term rental on the open housing market.   Hosts are losing money when maintenance fees plus taxes is $$600.00 per month allowing $450.00 to cover a mortgage is impossible to survive plus you can't get back to back stays.    It is a vicious cycle so that is why Airbnb needs to help Hosts to simply tap a button notifying them that the Guest is unreasonable asking 20% or great reductions.    

[Sarah977]

@Linda1161  "When Hosts accept Guests and offer 25% discounts,  the Airbnb recommended price is lowered. "

Most experienced hosts pay zero attention to Airbnb's price tips, which are absurdly low. 

I can see where it would be disturbing if you live in an area where your fellow hosts consent to guests' requests for discounts, but as you can see from many of the responses here, most hosts just take these requests for discounts as part of what one has to deal with, and simply say no and don't give it another thought.

And I don't know how familiar you are with other cultures, but there are countries where not at least trying to get a better deal is considered to be foolish and where almost everthing is open to barter.

I can think of far more objectionable behavior on the part of guests than simply asking for a discount. I just tell them my price is fair for what I offer and I don't give discounts.

[Linda1161]

Yes @Sarah977 it does to some degree within reason but we as Hosts do have the ability to set our listings with discounts already so the Guests requests are additional to.  I honestly feel monitoring these Guests will help all of us.   Have a lovely day 

[Nathalie-Et-Gilles0]

@Linda1161 

« These Guests copy and paste their request to several Hosts until they get a Hosts to cave and accept these terms. « 

It is legal to contact many listings and ask for a discount.

It is legal to refuse.

Prospects may find a host accepting the request BUT it may be not as nice as your place.

A property is unique.

If the traveller goes to a cheaper place BUT not well placed for his purpose, not well heated in winter and so on, he will have what he deserves.

It must be profitable. 
Hosts who don’t know their breaking point close the shop soon.
The breaking point includes  wear and tears and risk of tenant’s right which can be higher than a empty home.

It takes me 34s to reply to use the price search criteria.

Nobody likes to be fired.

[Linda1161]

Exactly @Nathalie-Et-Gilles0 that is what they do.  I agree completely this is what I am saying.  I thought we work on respect and trust, so are these Guests valuable to the Airbnb system? No they are not because it is the Hosts who take all the chances, we have the liability and potential problems when insincere Guests drop off the keys and leave.  It is stressful and hurtful.  That is exactly whey these Guests who feel compelled to play this game of Host Price Wars need to be stopped. It is not a drastic suggestion, it is something that a Host can make note of on the Guests profile.  Then if this is a constant habit of that Guest, Airbnb can deal with them based on the amount of times the Guests does this.  It creates a fair and honest playing field for Host and Guest.  These Guests need to be held accountable, no different from how Hosts are.  I am sure that the Guest who works this system and wants a cheaper price, may get a lower quality property so feels justified then to give a bad review and nasty comments too.. This is a vicious cycle where Hosts can only lose.  That is why these Guests need to be accountable. 

[Kia272 · Accepted solution]

@Linda1161 Your premise is absolutely ridiculous. Whether you can sustain your STR at your current price in the current market has nothing to do with guests asking for discounts. Two different issues.  Just say no. 

[Linda1161]

@Kia272  "Your premise is absolutely ridiculous"?   Definitely you are missing the whole point and unaware of courteous protocol or understanding of freedom of speech. 

[Kia272]

@Linda1161 you just cited freedom of speech, yet you  seek to deny that to me? Okay- maybe not as courteous as I could have been, but really- your argument makes absolutely no sense. 

Premise: a previous statement or proposition from which another is inferred or follows as a conclusion. 

The two things you are presenting have nothing to do with one another. You're simply lacking a basis for your argument as to the connection between these two issues, because there is none. Therefore, it's hard to answer, and anyone reading it and paying attention would have a hard time responding. 

[Linda1161]

@Kia272 thank you for your apology.  It is appreciated. My comments relate to the need for Hosts to have the ability to report unreasonable Guests.    I stay away from these Guests if you would like to Host all of them at 25% less than your listed nightly, weekly or monthly rate by all means enjoy : )     Persons with financing common sense would understand. : ) 

[Nathalie-Et-Gilles0]

" I am sure that the Guest who works this system and wants a cheaper price, may get a lower quality property so feels justified then to give a bad review and nasty comments too.."

Don't worried @Linda1161 

Obviouly cheapstake guests write a cheapstake review. It is a package.
When newbie, after earning an "alms", read the generous 3 stars review, he won't any longer accept requests for discount.
And if he is not smart enough to get the point by himself, Airbnb desactivates listings with bad reviews.

So it leads to the solution you propose ... by another route.

[Linda1161]

@Nathalie-Et-Gilles0 excellent suggestion thank you so much.  Yes it certainly does by another route.  I agree.  It would just be much easier if we as Hosts could simply click a button when we have Guests doing this.  Great to meet you, have an awesome day : )