Airbnb - the new myspace - The race to the bottom

[James261]

Anyone else really pissed off at almost daily email notications, "other properties in your area are "x" cheaper. By dropping your price you will increase the chance of gettting bookings. This acticily and agreesivily works against all hosts as it is a race to the bottom. Instead of getting emails with suggetstion or advice to help you increase the nightly rate all of our competition are being told on a daily basis - drop your price - drop your price - drop your price. The end result is if you don't follow your bookings dry up. This stradegy is going to break the Airbnb model. As soon as a new platform comes along that has a focus on Hosts working together collectivily  to protect margins, rather than the Airbnb policy that makes us work against each other they are going to go the same way as myspace. 

[Pete69]

Or become Uber.

The bottom line for me is supply and demand -- not airbnb's "price tips". I figure out supply and demand by testing out prices. Either guests bite or I have open dates and learn to lower my prices.

Look at what other comparable stays cost in your area. Look at their calendars. Someone pointed out to me that they go ahead and let the bottom feeders get booked well in advance, then 1 - 8 days later all that's left is her (higher priced) place. I am not going to be a bottom feeder. There comes a point where I need to make a good profit -- not earn peanuts for being a maid. Otherwise I can make 6 months worth of airbnb guest suite profit by instead leasing my entire house for a just couple of months out of the year.

[Letti0]

@Pete0 The guests from one of the inquiries last weekend checks in today. She is a high maintence one that's for sure. The person from the other inquiry messaged me about two hours after the booking that if the guests that book cancel to please contact her as they had to book 4 hotel rooms as no other places were available that could host 12 people. She also said she learned her lesson book now rather than wait a few days and keep looking figuring if I wasn't booked by now I won't be in a few days. She is now paying triple what I would have cost her. 

[Donna294]

It hasn't taken me long to come to the same conclusion you have stated.  There comes a point in the pricing where you have to ask yourself is all the work and time invested in being a great host worth it?  Although I can say I have had a handful of wonderful guests, I definitely have already experienced those who just abuse and disrespect my home.  It is such a let down to present a clean and spotless home with nice items, to come back after a stay to see the mess left behind.  My husband and I decided we were going to really vet our guests and if it remained empty for a good part of the year, so be it!  I am over all the aggravation and decided to be pro-active in limiting those who want to take advantage of me.

[Thu5]

Absolutely with you. I make sure my place is spotless, I care for my guests so much. However, in the last several months,  I discoved that guests have become more demanding and at arrival all they think about is how to get more out of this host instead of appreciating what already on offer. I just told a guest who arrived at 5pm today demanding usb charger, then the use of my kitchen even though kitchen was not on my listing. "I didn't read your listing", he said. Then proceed to tell me "How can I eat?" , "I already bought meat"...So, concerning for his meat I offered the use of my kitchen in a condition that he cleans up after himself. At this he got angry "Why do you say that? I am respectful to you...etc. " I stopped him by telling him that I have been generous in offering the kitchen use, if he is not happy perhaps he should cancel his booking. He, then, decided not to do cooking at all. I guess he will give me a bad review. 

Several recent guests I had this year all asked me to do more than a host should. I have to be firm and keep a strong boundary. I don't care about bad reviews any more. The respect has to be mutual, otherwise, not worth doing it at all. I also do not lower the price as hounded by AirBnB algorithm, it is stupid, I tried it last year and my conclusion is cheap price means cheap guests with uneducated view of the world.

[Rosemarie9]

I agree Pete, many people I know have chucked in the endless hosting and do just that, rent out their home a couple of months in the summer. Most have left airbnb and get bookings elsewhere or on private recommendation so airbnb are losing revenue despite their constant efforts to sign on more hosts and guests. I am doing more house rental and private bookings myself. Yes, I like hosting, but all my problem guests have booked at my lower prices, and I don't lower my rates too much seasonally, I am lucky I live in one of the busiest tourist towns in Ireland. I have come to the conclusion that I would rather not rent out to the bottom feeders, they are too much trouble, and unfortunately airbnb is attracting more problem guests because they know they can cause a bit of mayhem when a booking agency is concerned, especially one that holds the whole review system as a gun to our heads, and support is getting dire, even if you try and get them involved. 

[Lucy332]

Pete, while I take the same approach I also think that the 'bite' is massively affected by air bnb setting/ algorithims. While i adjust settings it tells me than long-term discounts, instant booking, no minimum stay moderate cancellations policies all affect where i appear in searches. Therefore I assume that while I hold out (as I am doing now) for the price I am prepared to accept Air Bnb is also obscuring me from the 'supply' for disobeying its instruction. 

That being said, there isn't a lot we can do about these things (other than feed back to air bnb we don't like its thinly veiled 'threats' would really encourage all hosts as James says not to bow to this price pressure. Air BNB once sent me a message to lower the price of my large, beautifully decorated double bedroom in London to £8!. Its less than a homeless person pays for a bed in a hostel !! and if we give in to this there won't be a lot of point to anyone renting out their space.

[John1574]

@James0  @Pete0

Nice rant, James.

Good point, Pete.

This is a market driven business.  What they do in one market, say Austraila, may be different from what they do in other markets based on local market conditions.

It happens when they unleash their ruthless algorithms that work on probabilities, calculus,  and redundant percentages and **bleep** sorry for anybody that gets caught up in the grind and inadvertently gets ground between the numbers.  They don't care. 

It's a numbers game.

[Jess78]

Oh god  100% with you. I get at least one of those a week and it burns me hot. DELETE!

When I first started I would actually go in and lower my prices, thinking that mine must be out of line. But I realized eventually the same thing you have ranted so nicely about: it's absolutely a race to the bottom that they're encouraging. I posted a bit back about a full on price war that has been waged in my area, set off by these emails I suspect.

I like 's strategy. Let others feed the bottom, and know your worth.  Ignore automated emails, automated pats on the back, automated scoldings and threats, automated CS agents, and focus on what's important to you.

[Matthew285]

@Jess0,

I wouldn't necessarily blame the emails/messages from Airbnb if there is a price war going on.

It might be happening just because a lot of new hosts/listings are appearing. 

If the number of available rooms goes up faster than the number of travelers using Airbnb goes up, there is a natural tendency for prices to come down. It is all part of supply and demand.

That is why Airbnb works so hard to try to get more guests to book on Airbnb. If there are more guests, then the system can support more hosts, which means more money for everyone.

If the number of hosts grows to fast, prices come down, and everyone loses out.

[Kathleen292]

Never give a room away. It will cost you in the end. A decent room with a fair price will atract better guests. Have fun not heart ache.

[Linda384]

I agree too. It’s not a level playing field is it. I’ve been doing this long before Airbnb and have invested quite a lot in my lettings on our farm. They are asking me to charge less than I was getting 10 years ago. (they are continually updated, decorated etc) . They have carbon monixide testers, wired in smoke alarms, fire blankets  and we have full insurance...all that’s required in the British Tourist industry and we have to pay Tax on our earnings.  I have very positive results with Airbnb but they have completely swiped the board with the power of the search engine results . 

[Jessica-and-Henry0]

I just increase my rate by a few $ each time I get annoyed 🙂

[Aogán0]

Haha,

I like it! At this rate, soon we'll all be charging thousands! 🙂

[Rosemarie9]

Oh my gosh, I am so happy to know I am not the only one who reacts this way!