Pricing issues

[Martha44]

I am getting really annoyed with Airbnb constantly telling me to lower my prices.  I used to get $55-60 per night for my guest room and now they are creating price wars by encouraging people to price lower and lower. Now they are telling me to price at $35 per night to compete with nearby listings.   I think all hosts should put a stop to this.  Our rooms are worth at least 50% of what a nearby hotel would cost so let's stop competing with each other by continually lowering our prices.  Before we know it we'll all be giving our rooms away for free.  Anyone else having this problem?  

I have received only one booking this month which is very unusual.  I also noticed when I searched for my listing that I'm buried on page 15 at the end of all the other listings, many of which are new and listing at $25-30 per night.  And I've been a superhost for the past year and a half.  Doesn't that suggest that I should be among the first listings that people see?

 I know it's a free marketplace and more people are offering every day but Airbnb seems to be actively encouraging these price wars.  They should not do that.

[Kelly149]

Yep, common problem. All we can do is decide that we know what it is worth to us and not go below. 

Currently abb is super quiet for me but I have regular incoming traffic from HA and none of the “you’re too expensive” nonsense from HA or their guests. 

Diversification may be one answer to the race to the bottom. 

[Jana27]

I am not normally on these sights but wanted to hear what others have to say about this. I have three rooms in my house, and Airbnb did the same to me. The suggestion given was to go down to 22 a night. Our local bunkhouse is not even that low (downtown youth hostel where folks report getting bed bug bites). My rooms are really nice and I have been rated as a super host all quarters. A link showed me that it was rating me against one other place in town, and my OWN TWO ROOMS that share a bath. My new room has a private bath. When I went on as a customer, I noticed my new room listed in "red" which means a high cost. I really do not like this. I will see how this summer goes (my second year) but investigate other places to list with. 

[Ginger3]

I agree. We recently spent a considerable amount on an amazing bathroom remodel - tiled walk in shower, vessel sink, handcrafted vanity, barn door, heated floor. Airbnb says the listing is overpriced, and buries it in the search page, even with great reviews and many bookings. Not a lot of incentive to make upgrades or add amenities. I'm super frustrated!

[Fred13]

To me their computer's 'opinion' what you should charge I always considered just silly nonsense; but if it influences placement than it is no longer funny.

[Sarah977]

Most hosts just ignore those pricing suggestions, they're absurd. But I also am p'd off if it affects listing visibility.

[Sarah977]

And Martha, remember, airbnb is not "telling " you anything. It's all computer generated, designed by what we have figured out are aliens. Ignore it like you'd ignore a telemarketer. I don't think you have to worry about other hosts following their pricing suggestions and lowering the market- none of us follow those pricing suggestions.

I was gonna send feedback to airbnb when they suggested I lower my price to $19 ( for a beautiful, immaculate private room with ensuite bath in a tropical garden in a major tourist beach town where a grotty shared hostel room with shared bath costs $25/nt), asking them how many more bookings they think I'd get if I charged $1/nt.

[Marzena4]

@Martha44 Just to give you one more example beside those of other hosts:

1. a guest from booking.com, working professional's words "You might tip your prices a little bit, your place deserves that"

2. a guest from Airbnb from a distant country in their review "Value rating 3/5"

I will leave Airbnb's policy with no further comments 😉