Higher prices, higher standards?

[Monika64]

Hi everyone,

I'd like to ask the opinion of experienced hosts if possible. I've recently started to rent out our condo in one of the tourist areas in the Philippines (brand new place, still working on more decor and professional photos). I can see that lots of the competitors have rock bottom prices ... I'm talking about renting out units for 4 people for the price of 4 movie tickets (don't even get me started on the suggested Airbnb prices, after paying my lovely property manager I don't think I'd have a single cent of profit with those prices!!!). I'd love to have more bookings but I'm wondering if "at all cost" will worth it at the end. I'd like to attract guests that will truly take good care of my place as it is a second home for me and my family.

Please do understand I'm not here to offend anybody!!! Half of my family are Filipinos and in general Filipino people are one of the most kind, respectful and friendliest people in the world. I'm just wondering if setting my prices at a higher end will result in guests who will really respect my place. (I'm the kind of person who straightens up hotel rooms before checking out ... I guess I'm kinda hoping guests would respect my place just like that.)

Would like to hear your opinion, please!

Thank you!

[Kim-and-Jen0]

Hi Monika, 

Based on what I experience,

1) low price for starting is OK to get few reviews, I was starting airbnb with not so low price. If you have a nice place and location, it is important to highlights what the advantage to stay at your place. Even you put high price if your location and place are nice, people will still book it. Be confindent with what you can offer compare to your competitors. 

2) The prices you are putting somehow will indicate what kind of guests you will expect, when I put it low, I get a lot of students/backpackers, when my price is higher, more couple or young professionals, but it is not guarantee anyone who can pay higher prices will respect your place and vice versa. This is depend on the individual. 

I hope this help and happy hosting!

[Monika64]

Thank you!

[David-and-Fiona0]

Hi. We are also in the Philippines. Short answer to your questions is yes......and no. It is all dependent on the environment you are marketing in and the competitive activity. Our experience is that the higher the price the better quality the guests. This has its limits however and is really directly attributed to your product. In our case our house is unique and can attract a premium price. There are limits to this though. For instance we could easily double our price but would the guest satisfaction levels be what we want? Half the guests and double the price, sounds good but if the expectations are too high your reviews will suffer. 

[David-and-Fiona0]

Oh and on another note. We love Pinoys but they are frustrating to deal with. The vast majority will ask for a discount and or something outside our house rules (20 people in a 2 pax room, cooking their own food, children etc etc the list goes on) unfortunately we have to decline most requests. The Pinoys who do read our listing and abide by the house rules have all been wonderful guests. 

[Monika64]

Thank you for your honest prospective! I was trying to find your listing! Looks like you are rockstar hosts!!! 🙂 plus I cannot wait to visit Bohol, was wondering if my little family would fit into your place 🙂

[Monika64]

I was able to find your house ... WOW!!! Unfortunately my little family won't fit (I didn't realize initially that you only rent a room) and it's a shame because your home is absolutely stunning!!! Love the red accents! And may I just say your photos are also breathtaking! 🙂

[Dev4]

@Monika64

I have been hosting for over 2 years and mostly cater to families and business travelers. Here are my learning:

1. charging higher fees means there is less tolerance for mistakes. If something is not working or a cutlery item is missing or cleaning is not 100% spotless, then guests usually complaint and reference it in the review.

2. Enquiries from bargain seekers - I have accepted that we live in an environment where a lot of people ask for discounts and explore multiple options before confirming one. 

3. What has worked for us is that we constantly put some money into the properties for upgrades or technology advancements. e.g. adding NEST thermostat. This helps us justify higher price tag, be more environment friendly and keep our guests excited.

4. Constantly play with your pricing. We monitor pricing once a week so that it is accurate and we are not out of competition. Think of Airbnb as operating a grocery store.

P.S. I am based in Toronto, which is a very competitive landscape for Airbnb and very seasonal.  

[Monika64]

Thank you for the great ideas!!!