Are extra discounts the 'new normal'?

[Huma0]

Now that UK calendars have been unblocked and the Government is easing lockdown restrictions, I have started receiving enquiries again from potential guests, but no instant bookings or requests to book so far, probably because every single one is asking me to give them an additional discount/special offer, often with phrasing such as, "given the current circumstances"...

Normally, I never agree to these kinds of requests because I host long-term guests and have always had weekly and monthly discounts built in. Besides that, the rooms are priced very low for what they are even before the discounts. However, given that they have been empty for months and I've lost I don't know how many £thousands in income from cancellations, I have been offering to reduce the already discounted price by a further 10%, which means the guest is getting more than 25% off. I can't go any lower than that because the rooms are already at the minimum nightly price for the foreseeable future (they would be a lot higher in July/August/September under normal circumstances).

Still, this doesn't seem to be good enough for the guests. They appear to want Airbnb rooms for the price of a long-term rental, but a long-term rental normally requires a year's contract, sizeable deposit, paying your own bills/Council Tax and doing your own cleaning! I imagine they would still expect the same standards, service and facilities from the Airbnb as a guest paying full price. Besides, these days there is a lot of extra cleaning involved.

The way I am starting to think about this is, while it is natural that people will bargain hunt knowing the market is at a low point, shouldn't they be supporting small businesses right now instead of taking advantage of those who are struggling? If, unlike me, you are lucky enough to still have your job (most of the enquiries are from guests coming to London for work) or can afford to holiday for weeks at a time, is it fair to expect hosts who have lost huge amounts of income to subsidise your vacation/lifestyle? It's not very ethical nor morally sound. I know the guests are not seeing it from this perspective, but that's what it boils down to!

What's your opinion? Would you offer higher discounts because it's better to have some income than none, or would you stand your ground?

[Huma0]

Oh, so here's a new one:

"Hello, I’m X and 22 years old from Japan
Nice to meet you x so I’m looking forward to staying in London around October (after corona is over) and I saw your room it’s stunning!!! but I will visit to London for just a 2 weeks and it’s for seeing my English boyfriend. So I’d like to stay in your room for just 2 weeks for around Y£ including service fee. Is that possible??"

Erm, the room has a minimum of 21 nights, but this young lady is wanting to book for just 14 for two people, but wants me to charge her the price for one (with the weekly discount), and to include Airbnb services fees!

I responded saying I was confused about where she was seeing that price, or had she just intended to book for one person?

What? 

[Debra300]

@Huma0,

"Yes XX, we can work out a deal.  In order for it to work out, I will need to remove bedroom furniture and you cannot access to common space, kitchen or bathroom, and there will be no  electricity and wifi in your room."

Cheers

[Huma0]

@Debra300 

She came back apologising for her English and then basically retyped her into message, but taking out any mention of the cost! So, I guess she got it.

I am not sure why some guests think they can dictate to the host the price of the airbnb. Do they imagine we just picked a rate out of thin air?

[Debra300]

@Huma0,

As we discussed earlier in this thread, there are some people who will always ask for a discount, because that is their nature.  It's not always about if they can afford the posted rate or not.

I do think that some people are misguided in their thinking, because a desperate host will be resentful, not thankful, for taking a guest at a discounted rate.  I also previously mentioned in a discussion with you, that when a guest receives a significant discount upon request that they may feel empowered to question the authority or push the boundaries of the host/home owner, because they feel the host/home owner should be beholden to the guest.

@Inna22 has a great a conversation going about a guest stating that she wants to cancel and rent something less expensive:  https://community.withairbnb.com/t5/Hosting/Should-I-say-something/m-p/1333573#M317215.  It appears that the guest is fishing for a further discount than what she's already been given.  One host has suggested to Inna that she give the guest a discount, because she may not be able to rebook the days on short notice.  I am definitely not counting pennies in anyone's pocket, but on general business principles, I think that pandering to this type of behavior will only make it spread and continue to attract an undesirable sort of guests.

[Huma0]

@Debra300 

I agree. I could do with the income to be honest and it does seem to make logical sense to have SOME money coming in rather than nothing, but I would resent hosting people for too little money. It is my home after all and it IS an effort, especially if you get a guest that is a bit demanding or otherwise hard work.

I also don't like the idea of being taken advantage of. Out of principle I think it is wrong for people to use the current situation to barter with hosts. My place is not expensive to start with. Perhaps I would look at it differently if I had a huge profit margin, but I don't.

[Sarah977]

@Huma0  Interesting that your Japanese inquirer also seems to have some magic crystal ball which tells her that coronavirus will be "over" in October.

[Huma0]

@Sarah977 

Lol, well she also rephrased that part in her second message to, "I am looking to be visiting the UK in October providing it is safe to do so."

Interesting that. I didn't say anything about COVID in my response to her, but I guess maybe she re-read her initial message and realised it was not that well thought out!

Anyway, she has not gotten back to me since I messaged her again reiterating that I had no control over Airbnb fees and could not discount the accommodation any further and that also she needed to verify her Govt ID, provide her partner's full name and confirm she read the house rules. She may still get back to me, but I have found that all of the enquiring guests (bar the one that is currently staying) seemed to get scared off when I asked them any questions at all. Normally it isn't that much of a problem, but does seem to be these days...

[Huma0]

Here's a new one I received today:

"Hi Catherine,

I hope you are well.

I’m an 23 year old Irish guy coming to London for work in Vauxhall as a trainee project Manager and I want to stay in your apartment for the first few weeks because it looks like a really comfortable and secure place.
I’m contacting you about a discount since I am coming for at least month. I would like to pay €700 (plus cleaning and service fee). Maybe you’d be interested in such a deal because of the length of my stay and my positive reviews on Airbnb.
Another owner offered me this price, but I prefer your apartment.
Looking forward to hearing from you.

Thank you,
K..."

Firstly, I have no idea who Catherine is. Secondly, there is already a 15% long-term discount applied and there is no cleaning fee. Before this discount, and before Airbnb guest fees, the room would be £1,316 (and that's bearing in mind that it is currently at it's minimum rates), so he is effectively asking to pay half price!

Anyway, I wished him well and said I hoped he found somewhere within his budget. At least he didn't mention the "current circumstances", but I can't understand why anyone would think they could get the room so cheap otherwise. I have never received an offer this low, or even close to it, before.

[Huma0]

PS I am not sure why K thinks he should get a discount because of his good reviews as he doesn't have any reviews! Nor does he have any profile info nor verified Govt. ID.

I would like to think he simply messaged me in error, seeing as my name isn't Catherine and the listing is not an apartment.

[Debra300]

@Huma0,

K's just fishing, and hoping that he will get a bite.  It appears that he was spamming the same message to numerous hosts in hopes that someone would be desperate/weak enough to give him their champagne style space for his beer budget price.  

[Huma0]

@Debra300 

I am sure you are right, but he's not being very clever about it, is he? In his shoes, I would personalise each message and try to include reference to some little detail about the listing, let alone get stuff like the host's name right! Also, why refer to his good reviews when he has none?? That's just odd.

I really hope he does not find someone desperate/week enough, but I suspect there will be people with empty rooms who think it's better to fill them for a month for something, rather than have nothing coming in. His check in date is next week and I wouldn't normally have any empty rooms at this stage, but times are far from normal.

[Debra300]

@Huma0,

Hrmm, it sounds like dude is coming to London right before the bank holiday weekend for some fun.  Although this year's carnival will be virtual, I am sure that folks will probably have informal celebrations.  Especially, in some parts of South London.  The St. Lucia carnival was canceled back in April, but when carnival Monday arrived last month some people still put on their costumes, and gathered to march in their local communities.

I know that it's common for large companies to have offices in multiple locations, but Vauxhall's headquarters and plants are in Luton and other areas of Bedforshire.  If he's working up there, staying with at your place would be one heck of a long and costly daily commute.

[Huma0]

@Debra300 

I hadn't thought about that, but it's possible. However, I don't know why someone would book a listing for a month if they are planning to just come here to party for a short time. I don't know what company he works for, but quite a lot of people do work in Vauxhall. I would be more worried about him trying to squat the place (he said he plans to stay at least a month) or at least wanting to extend but refusing to book via Airbnb. 

Believe me, if I was a young person and got this room, in this location, including bills, Council Tax, cleaning etc. fully furnished to a high standard, with fresh linens, towels, toiletries, tea, coffee etc. etc. etc. for 700 euros a night (even with the fees), with NO REAL SECURITY DEPOSIT,  I would NEVER want to leave! 

[Huma0]

PS don't know why that bit came up in bold as I wasn't trying to highlight it!