Pressured to Lower Your Hosting Prices

[Sean119]

Just looking over my (fairly full) seasonal schedule and I noticed the little red dots on my ABB calender.  Click and I get a message "Your listing appeared in search for this night but people booked other listings that are about $93 less per night".   Now, it doesn't say # of rooms, location, amaneities...anything.  Just a LOWER price.  So the message ABB is conveying is "you lost a booking becasue your price is too high".  No, actually, my price is right.  But ABB makes money off ANY booking, so there is no incentive for them to understand the differences in listings or the "value" of one over the other.  Price does not equal value.  There is a great book called The Meat Racket that details how Tyson Foods developed such an incredible death grip on American farmers.  One tactic still used is they RANK local farmers against one another...Tyson rewards the "top" farmer with a bonus and prioritzed access to chicks and feed.  "Bottom" farmers are threatened with no access.  This forces other farmers to work harder and longer (thus less profit for a fixed crop) just to stay in the game.  Sound familiar?

[Fred13]

One would assume those 'lost' bookings, did moved to another Airbnb, otherwise why would they know those potential guests were 'lost' it in the first place. And if they did why go through the silly red dot exercise, they got a fee out of it.

It kills me when Airbnb keeps putting pressure on hosts to lower their prices, just so they get 'some' fee, even if the price now starts to draw guests from the higher-risk lowest price range.

[Tiny-Haven0]

That higher-risk lower price range is a real thing! I got a guest who booked one of my places at a lower price and then left it a mess, tried to get e refund, and gave us a 1 star review. I definitely caution other hosts not to lower your price too much, because you may get guests who really do not take care of your space. 

[Linda108]

If I was unhappy with my level of business and wanted to understand the factors that might be affecting my business, this information might be useful, @Sean119.  If I am happy with my business then I don't pay attention to this type of feedback.  I don't see any problems with this.  I don't feel ranked or pitted against other hosts.

[Sean119]

@Linda108 Nice to hear, but the fact is that you ARE being ranked against other hosts.  Ignoring it is, of course, your right.

[Mona61]

  Hi Linda. I  am a fairly new host, since August this year, and i stay booked almost every day. I am a super host. I get those messages that so many people looked at my place and then booked something else cheaper.  All I can say is you can't improve on success.  If I charged less I would be losing money.  

[Sohna0]

Hi hosting twin. I started in August too

[Jessica-and-Henry0]

@Sean119

When I see those types of messages I usually think - whew~ dodged a bullet!!!! I don't want bargain hunters who are concerned only about the price. I want guests who will appreciate what I have to offer. I know there are plenty of cheaper options than mine - if guests don't mind sharing a bathroom or having a smaller room or less privacy or a place that doesn't provide towels and amenities then that is their choice 🙂 

I usually increase my per night rate by a couple bucks for a week or so whenever I get an email that I should lower my prices. 

[J-Renato0]

Hello @Jessica-and-Henry0

You say - "I usually increase my per night rate by a couple bucks for a week or so whenever I get an email that I should lower my prices. "

Some times I do it because I got angry.

Do you think it works? Do  you get bookings at a better nightly rate?

[Jessica-and-Henry0]

@J-Renato0

I don't see any reason to get angry at stupid, automated messages 🙂 Henry and I usually laugh like crazy at the messages and the price hike is more as a joke - let's see what the NEXT e-mail/message says, haha~

I get a lot of long-term guests for as short as 1 month to as long as 4 months. On average, I tend to get anywhere from 1~5 inquiries per quarter (for instance, I had total 3 inquiries for the month of July (summer semester students) this year up till April, of which one led to a confirmed booking)

[J-Renato0]

Jessica & Hery.  I wish I had the same sense of humour as yours to deal with price suggestions that put one host competing aganist other hosts to hit the rock bottom! 🙂

I take very seriously when someone send information in an irresponsible way that can cause losses to me or to other ones.

[Jessica-and-Henry0]

@J-Renato0

A simple example of why I absolutely have to laugh at any suggestions from ABB....... I still get suggestions to reduce my nightly rate for "more bookings". 

 And although July is nearly fully booked as of 1 week ago, it didn't stop ABB from giving me price tips to get booked yesterday 🙂 

[Donnie-and-Kym0]

That's a great idea!

[David126]

Has been discussed many times.

They are made up, we can discuss why AirBnB do it, I do not know.

A couple of times I have looked for these mythical listings anywhere near me, there are none at these price points.

[Clara116]

@Sean119 I just ignore those sweet little reminders.............and always remember my husbands words

"your price is still less than that cheap motel 6 (also the local crack joint)" and I smile and just leave

it alone. I will let my place sit empty before I invite trouble or work in the minus. Plus those hosts that

keep lowering prices well, yes they book quickly. AND then folks still looking still need a place and

guess what - guess who gets the booking. And folks know its a great deal - so there is something

really nice about just waiting and still doing really well. 

Plus any of the pros in business and finanical world will tell us When you are booked completely 

your prices are too low! That should give us food for thought. happy hosting, Clara