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?

[Mark116]

@Emilia42  Yes, the taxes and fees have risen significantly.  When we started there was only the Airbnb fee, now our guests pay a state sales tax, a city STR tax, a state & county STR, which adds up to an additional 16% last time I checked.  That is a not insignificant amount of money that will not see at all until they actually book.

[Huma0]

@Ann72 @Ricardo85 

Yes, I've often heard other hosts state that they don't accept guests who ask for discounts because those tend to be the problem guests. I have never minded when long-term guests have asked for one, as it's usually along the lines of 'As I will be staying so long, would it be possible to have a discount?' I simply explain to them that they are already getting a long-term discount and then they either book or they don't and the ones that do have never been a problem. It's the ones that keep insisting on a discount that tend to be trouble!

Like I said, I don't mind them asking that, but I am starting to mind EVERYONE asking for a discount because of COVID-19. No, you are right, my costs have not changed at all. I am not going to tell the cleaner that I will pay her less per hour because there's a pandemic! Again, would that be ethical?

No, I don't expect to make my problems my guest's, but I also don't think they should use my problems as a bargaining tool. Like I said, all these people have jobs. There are plenty of Airbnbs within their budget, but they think they can get a better place for the same price because the industry is on its knees right now. I don't actually blame them. Everyone loves a bargain. Perhaps I would also ask if I was in their shoes, but I don't believe so. I think I would be aware that prices are already low and wouldn't try to push it further.

[Russell49]

These days, because of my location, I am charging more and am more picky about who stays here. If they don't have several great reviews-they simply aren't welcome here. I have had far too many 0 review guests turn out to be shtheads despite reminding them of house rules, etc.

[Ann72]

@Huma0  I meant to sound supportive and I'm sorry if my tone came out otherwise!

Of course long-term guests should have a discount.  I had a 3-month booking for the first time ever this spring - mid-March to the end of June.  They got a big discount but they were also paying weekly during what is normally a very low season.  So the plus side - money in when there usually isn't any.  The minus side - their booking brought my overall average nightly rate down for the year.  It's okay, though - they were great guests and the income kept me afloat.

I didn't say you were making your problem's your guests' - they're thinking only of their problems and using them to try to guilt or manipulate you into going lower.  There are people who ask as a matter of course, and when told no they either book or go elsewhere.  Those I don't mind and I don't think you do, either.  But those others - the "current circumstances" types - ugh.  I got quite a few saying, "We would like to book, but we're going to need a more flexible cancellation policy."  Oh really?  You're going to need that?  In the summer in Maine?  So the answer was no.  I just told everyone who asked that that they should wait until they were 100% sure they'd be able to come before they booked.

And you and others have a good idea with offering shorter stays at higher prices.  That might work out.

[Huma0]

@Ann72 

Sorry, I absolutely wasn't challenging your opinions, as I agree with them. I am just in a bit of a ranty mood about this!

I am totally willing to be flexible right now. We kind of have to be in this market. However, what I resent is the guests who are trying to take advantage of the situation.

I think a few people have misunderstood what I meant about 'ethical' or 'morally right' in my original post. I was talking more philosophically. I absolutely don't think that these guests are intentionally trying to take advantage of me (or other hosts) who are in a bad situation. They are not thinking about that at all.

My philosophical questions was that, if they actually stopped to think about it, they might realise that that is what they are doing. They see an opportunity to get a bargain, but don't seem to realise that their bargain is at someone else's expense. It's natural I guess. I have always loved a bargain but, given the "current circumstances",  I don't think it is actually ethical to try to drive small businesses down on price just because you think you can, given that they are likely to be struggling.

People need to stop and think for a moment.

I am totally not directing my rant at you! I believe we are on the same page.

[Ann72]

@Huma0 Yes, we are totally on the same page!

I've been pondering your point about morality and ethics, and I agree, in that people who can't think of others at a time like this must not in fact have a strong moral and ethical code.  They're like the people who think being told to wear a mask is somehow an infringement of their right to liberty.  They're unable to think of the greater good.

[Russell49]

Ironically I have had guests that were hosts as well and they asked what kind of discount would they receive if they booked with me. I told them I am a highly experienced chef and will make them an elaborate breakfast of their choice for free....they still didn't book.

Nothing is ever good enough for some people. They want more from you and expect to give less. This is a red flag for problems.As hosts, they should have known better. Oddly enough, some of the messiest guests I have had were also hosts. lol

[Huma0]

Also, let me reiterate. This is not about the guest not being able to afford the room at the current rate, but EXPECTING a further discount due to COVID-19.

A girl who contacted me yesterday said, "My budget is XYZ, which is a bit under your rate. Would you be willing to bring it down to that?" She had lots of excellent reviews and asked very nicely, so I said yes. Unfortunately, she hasn't booked. Maybe she is still shopping around. 

In contrast, a guy who enquired asking only about the quality of the WiFi  immediately asked for a COVID discount as soon as I responded saying the WiFi was good. He sent me 0% information about himself other than that he would be working, has no reviews and no profile info. I responded explaining that the rooms were priced much lower than usual, there was already a long-term discount and would he consider one of my other rooms that were slightly cheaper? He went completely silent after that.

[Mark116]

@Huma0  COVID discount, what BS.  I wonder how guests would react if you responded to their requests by  asking them if they'd mind a COVID premium extra charge to help you during this troubled time.  No takers, but takers is just what those kinds of people taking advantage of this situation to get some freebies.  And yes, I agree, its sad but somehow airbnb hosts have become synonymous with 'wealthy property owners reaping exorbitant profit from the lowly guests while simultaneously trashing the affordable housing market across the planet'  Sad.  Airbnb should have paid more attention to this end of their image instead of chasing every new public issue fad.   

[Ann72]

@Huma0  I love the people who tell me they want to book but their budget won't support it.  Would they go to the manager of the Ritz-Carlton and say they'd like to stay there but their budget won't support it?  😂 

[Russell49]

🤣🤣🤣These cheapskates wouldn't dare go to the Ritz-Carlton because they know where they would be told to go...a nice hot place underground!

[Jessica-and-Henry0]

@Huma0 

I think @Mark116  and @Ann72 have summed it up perfectly! 

"COVID discount, what BS" and "Would they go to the manager of the Ritz-Carlton and say they'd like to stay there but their budget won't support it?" 

[Ann72]

@Jessica-and-Henry0 🤣🤣🤣

I mean!

[Inna22]

@Huma0 I am one of those people who always says those that ask for a discount bring trouble. A few times when stood my ground, they booked and were wonderful. It is those who were able to finagle a discount for me one way or the other, usually just buy exhausting me into giving have always turned out to be a nightmare. This is my strategy right now: I’ve lowered my prices to the lowest I could tolerate. I raised them just a little bit in the last couple weeks but we have a new ban and so I’ve lowered them again. I have already posted the bottom of the bottom prices and my weekly discount. Most normal people will shop around, compare prices and amenities and will realize this is a good deal. Those that would not do their homework or always hungry for a better deal, will simply never be happy with what they get. Another thought: it’s a different demographic that’s traveling right now. The type of I guess I’m getting right now is completely different from my usual type. I still haven’t figured out if I just don’t know how to handle them or what would please them but somehow the ride has been really rough. Some I have never been to Chicago and think it is a cheap opportunity to do so having no clue what our prices are like, some think they are a gift to me by gracing me with their booking and expect I wash their feet, some are I don’t care type  – I don’t care if I die from Covid, I don’t care if I trash this house, I just don’t care. 

Are usually reply was: thank you for your interest, my prices are as posted. I never explain myself anymore because that simply opens the door to conversation and there is no conversation to be had. Every once in a while if I feel extra generous with my words I would add something like: I feel my price fairly reflects amenities and location.

[Huma0]

@Inna22 

I totally agree with you.

Another thing that is concerning me is that NONE of these guests have asked what extra safety measures I am putting in place, what my cleaning routine is (I have not posted that I am following Airbnb's extended cleaning guidelines), who else is staying, etc. etc. They don't seem to care about COVID, other than that they can get a lower price. 

Of course, maybe I am jumping to conclusions and they DO actually care, but none of them have referred to the "current situation" other than to ask for a discount. Are these people really the kind of guests I want in my home right now anyway?