Potential Earnings Calculator Correct Appears Incorrect - I should be earning much more

[Bill180]

I am new to hosting, so am perhaps missing something quite obvious. Please help me understand.

I have smart pricing set with $195/night as the floor rate. I was just asked to let it from Feb 8 through Mar 31. That would be 51 days. I have a 60% discount turned on for 30 day rental. The display shows the following:

Potential earnings

Subtotal

$1914.08

Service fee

-$57.42

---

You earn

$1856.66

However, my calculation is wildly different.  51 * 195 = 9945.

Subtract out the the 3% service is: 9945 * .03 = 298.35

The 30 day discount of 60% is: 9945 * .6 = 5967

So 9945 - 5967 - 298.35 = 3679.65

Not only do I not understand why the expected amount is 1914.08 and not 3679.55, but the service fee is far less than I expect.

[Emiel1]

Hello @Bill180,

Your listing shows a special discount of 24% until 8 May, did you calculate that one also ?

Also the service fee is calculated on the total, so after the discounts being taken off.

Best, Emiel

[Bill180]

Thanks, Emiel.

No, I didn't include that in the above. It seems that is the key I was missing. It might be that the thirty day discount is taken after the special discount as well. I will have to run the numbers again.

Being a new host, the set up was really simple, but the impacts were not clear at all. It was very mysterious. I wish Airbnb had shown a breakdown and let me adjust the various discounts so I could see the changes in real time - something like a mortgage rate calculator.

Oh, well, it is a learning curve.

Thanks for the help!

[Kelly149]

@Bill180 ABB CS can tell you exactly what was the price for every day of the res. But the biggest take away (I've had a similar surprise booking!) is that ABB handles discounts differently than almost any sane person would expect.

Most would think 60% off the monthly rate and then recalculate for the 24% off of that, but NO ABB will give an 84% discount to the whole thing. This is a HUGE difference. Any host that has discounts for any combination of days should be very wary of also ever offering an ABB special "coupon". You're right ABB has not made it clear and if you thought your room was worth $195/night then really how worthwhile is it for you to have it rented out for less than $40/night??

So 51x 195=9945

9945x .4=3978

3978x .76=3023

3023x .97=2933

OR

51X 195=9945

9945X .16=1591

1591X .97=1543

That's a $1389 difference bc ABB combines the discounts rather than applying them sequentially. It's pretty sneaky. At least you had a few higher days in there, it could have been worse. BTW, if you don't like the idea of how this booking came to be, you can try to get abb to cancel for you. And if they won't you can always cancel yourself and just deal with the consequences of having a host cancellation on your listing. I can't imagine being forced to stomach hosting at an overall rate of 84% off - that's extreme.

[Bill180]

@Emiel1I can't make it work. Here is what I am thinking. I am using smart pricing. Many of the dates included in the selection were set at the floor. However, some dates further out - this being 50 days guest request - were higher. So, it was not as simple as 195 * 50 (51?). Does that make sense? Now that it has been accepted, I cannot seem to find out what each date was rented at. Is there some way to find the day to day breakdown or other more detailed info than just this magic number that appears which is difficult for me to verify?

FWIW - I don't believe I am being scammed. I just want to understand better so that I can better manage my listing.

[Emiel1]

Hello @Bill180 ,

The special discount (until 8 May) and the monthly discount (if reservation is 28+ days) are both taken from the main sum (so you give a huge(!) 84% discount). if it says you earn 1914,08, then the original sum must have been: 11963,- (adding the discount again). Then the price per night must has been higher then 195,- on certain dates, which is possible, as it is "smart pricing". You can see the actual price per day in your calender on dates which are not yet booked. Also you can select a certain period on the calender and choose on the right side of the screen : What do guests pay", to see the actual discount(s). I can only see this figures by simulating a booking on your listing. As the discussed pricing her is about an allready booked period, i can't see it anymore. 

BTW "long term stays" have multiple payouts and special cancellation policy.

read more: 

https://www.airbnb.com/help/article/285/how-are-long-term-reservation-payouts-processed

https://www.airbnb.com/help/article/1361/how-do-changes-and-cancellations-work-for-long-term-reserva...

Best regards, Emiel

[Fernando414]

Something happens to me also!!! Airbnb is calculating less than what we expect to earn! I do not why? is there a email to contact Airbnb?

[Emiel1]

Hin @Fernando414 ,

You have a special discount of 20% on your listing for first 3 guests who booking until  7 May.

(If I can see it, you can see it too !)

Best regards, Emiel

[Fernando414]

Thanks Emiel! understood and here you have a home if you want to came to Guadalajara, Jalisco to Tlaquepaque town a very especial place to meet.

[Fred13]

Reminder: Beware of lavish discounts, also keep in mind they stack and also that they are always deducted from the absolute amount (which btw is also like most 3rd-world countries do their tax 'accounting').