REPEAT BOOKING INCENTIVE

[David1396]

Presently, virtually all of our repeat guests book with us directly - thus avoiding the [not insignificant] Airbnb booking fees.  This seems to me to be a significant lost revenue opportunity for Airbnb.

Having a significantly discounted booking fee for repeat guests (staying at the same venue), say a 75% discount, would encourage hosts to still have their repeat guests book through the Airbnb site.  The advantage to the host is the simplicity of operation, calendar tracking, insurance coverage, etc. 

The advantage to Airbnb is an increased revenue stream (25% of something is better than 100% of nothing), maintaining the loyalty of both hosts and guests, etc.

My 2-cents (or Airbnb billions).

David

David Harrison

The Farm on Old North Road 

Huntsville, ON Canada

[Sandra126]

Yes yes yes. How great that would be. 

[Charles224]

@David1396 I'm amazed at the mathematical option of a 75% discount.  I have trouble with 10 or 20% discounts so do you charge too much?

The other issue is the lack of insurance cover you expose by not using the Airbnb service. It's like getting in a Lift or Uber and being offered paying cash as a benefit,  while not thinking that there is no insurance without the app and if anything happens.. well my imagination sees a potential disaster. 

Cheers, Charles 

[Sandra126]

@Charles224 I think he means discount on the commission. Only.

[David1396]

That is correct!

[Robin4 · Accepted solution]

@Charles224 

Yes my thoughts initially too Charles, if a host can afford to offer a 75% discount their normal rate is 65% too expensive! A 75% discount would mean, after covering costs I would be paying guests to stay here. However David does specifically state discount off the 'booking fee'! He wants Airbnb to slice a chunk off that 20 odd percent to maintain customer loyalty.

@David1396  I do get quite a few return guests but if they have initially booked with me through Airbnb, I ask them to keep their return bookings in the Airbnb system. As Airbnb guests I do offer return visitors a discounted rate but I don't encourage them to deal behind Airbnb's back.

Cheers.........Rob

[David1396]

Hi Rob,

Airbnb is not an exclusive booking system.  Countless users use other methods of accepting reservations - including direct bookings.  No one is 'going behind their back'.

You state that you offer a discount to returning visitors, but that is a direct cost to you.  You may provide a 10% discount to your guest and yet Airbnb still charges their regular commission (in fact, the lower your charge, typically, the higher Airbnb's commission rate). 

But, as an example, if a guest books with you directly, on a $625 booking, the customer saves $88.25 (14%) and you keep your full margin.

I am suggesting that a reduced Airbnb commission for returning guests, in the long term, would be a win-win-win situation, for the guest, for the host, and for Airbnb.

David

[Robin4]

@David1396 

I fully agree with you David but Airbnb have a track record of not giving anything away, and it is my feeling that they would be more concerned about the loss of revenue than the increase in business and goodwill it would generate for them.

To give money away sets a dangerous precedent for Airbnb David. To give you an idea of just how far they take this, each year I get a $100 coupon for retaining my Superhost status. On one trip I used my coupon to book a night stay at a 'pet friendly' listing.....as we sometimes take the dog with us to see our kids and gandies.

A month after I booked I received a message from the host to say that she was no longer pet friendly. Apparently a guests dogs had done considerable damage in her property and after having the bulk of her claim rejected by Airbnb she (in part protest) had withdrawn her pet friendly status. I could have told her she had to honour the terms at the time of the reservation but, all that would have done is got her back up and me a bad review.....it just wasn't worth it!

I pursued the option of cancelling that reservation and booking another property but was told I could not transfer my coupon. I had used it, and that was that.....whether I proceeded with that reservation was irrelevant, I could not have another 'nibble at the yeast bun', the coupon was gone.

So, I think your idea is fine but, like trying to get the review system fairer......I wouldn't hold my breath waiting David!

Cheers........Rob

[Huma0]

@Robin4 

You are correct. Once you redeem that Superhost travel credit, you can't transfer it to another booking, even if it's with the same host!

I had two coupons to use at the same time (unusual but one of them was extended due to Covid I think). Their total was enough to cover a two night stay at a B&B I liked the look of, but you are not allowed to use two in one booking so I booked the first night using one and was going to use the other to book the second night. I had already messaged the host to let her know about it.

However, when I went to book the second night, it was gone! The host had another listing for the same price that was available for two nights. I asked her to transfer the first booking to that one and that I would pay the extra cost if there was any. Now, the host CAN transfer a booking from one listing to another. I have done this myself many times and it takes about 30 seconds. The host has to do the alteration request though. The guest can only do one for a change of dates or number of guests.

My host kept telling me to cancel instead and book the other listing. I explained a few times that if I cancelled the booking, I would lose the credit and she wouldn't get paid either so it was a lose-lose situation. Unfortunately, that got me nowhere. She wasn't a Superhost nor did she regularly take bookings via Airbnb so I guess she had no idea what I was on about. It was so frustrating though.

We definitely didn't want to have to check in and out of two different listings and it would have meant the host had to prepare and clean two listings instead of one for the same income (there was no cleaning fee) as if we had just stayed in the one.

[Robin4]

@Huma0 

Hey Huma, fantastic to see you are still on the CC. I thought we had lost you like so many other great contributors from the past, you mate are an icon of the CC.

I have lessened my involvement here somewhat, you like to feel you are helping, I hate to say it but, at times it feels like your efforts are not appreciated and your time is better spent in other directions.

Huma life has been great for Ade and I, we have been largely unaffected by Covid-19 and we have had 130 stay in the past year. My artwork has suffered....... unlike yours which I am sure has flourished.

Would love to hear what you are up to now!

Cheers.........Rob

[Huma0]

Hi @Robin4 

Thanks for your kind words. It's nice to hear from you too! 

I felt I had to take a break from the CC because I needed a break from all things Airbnb for a while. It's certainly been a great source of support during difficult times but it can also make you dwell too much on problems when it's maybe better to move on.

Great to hear that you and Ade have had a good year. Have you mostly been hosting more local guess then? I thought the borders had been closed for quite a time. I know my friend in Adelaide was very stressed about not being able to come back to the UK to visit her mum. Sorry to hear your artwork has suffered, but sounds like you've been very busy!

I am okay. I did not host for quite a long period of time due to COVID but had a lovely American girl living with me until this summer. She was here through a long lockdown and a great support. I'm not sure if you know, but Christmas was basically cancelled in London last year so it was the first Christmas I ever spent without family or a boyfriend. Thank goodness she was here. It was just the two of us but we managed to cook enough for ten 🙂 I miss her but she is not far (studying in Oxford) and is hopefully coming to visit next month.

Things have picked up considerably in the last few months and my listings have been busy. Of course, now we have another new variant, so who knows how things will go (I just got my first cancellation because of that).

I am not panicking though as I have almost exclusively hosted UK based guests since the pandemic. At the moment, I have two lovely NHS student nurses staying. They wanted to book another stay, but the dates were already taken. I hope they become repeat guests none-the-less.

[David1396]

Charles, the 75% discount is suggested for Airbnb booking fees (Airbnb's commissions), not a discount on your nightly charge.  As you note, that would be unaffordable!

Presently, Airbnb charges 10% - 15% of your total charge to the guest, e.g. $88.25 on a $625 booking.  I am suggesting that Airbnb only charge $22 if your guest is a repeat customer at your location.

We have been taking reservations on Airbnb for the past 4 years.  Now, about 40% of our guests are returning visitors and we are comfortable with them booking directly with us.  If Airbnb only charged a nominal amount for repeat bookings, we would then encourage them to continue to book through Airbnb.  Right now Airbnb makes nothing on our returning guests.

BTW We have our own household insurance, including B&B coverage, in addition to the Airbnb coverage.

Hope this clarifies.  David

[Elaine701]

I can't really identify any benefit to encouraging repeat guests to book through Airbnb. Or any other platform. 

I pay for insurance whether it's booked through Airbnb or not. Calendar is updated whether booked through Airbnb or not. Operations costs and taxes are pretty much the same whether Airbnb or not. Everything works much the same whether it's booked on Airbnb or not. 

To be fair... with Airbnb, I can be reasonably assured of new bookings. But without Airbnb, there's no risk of inexplicable suspensions, ratings declines or delisting. 

[Emilia42]

Not to mention the huge stress relief when a guest books direct vs. Airbnb, repeat guest or not.

[Ann72]

@David1396  I like your thinking!  But like @Robin4 I prefer to have returning guests stay on-platform, whatever that may be.  I have a full time job running a business unrelated to my short-term rental business and haven't taken the time to set up a system for direct bookings.  I have done it for returning guests who ask, but I don’t initiate it.  I also don’t feel like sorting out the state occupancy fee and Airbnb and VRBO take care of that.  On top of that I’m a dance-with-who-bring-ya gal so going direct with returning guests makes me a tad squeamish. I’ve done it, don’t get me wrong, but I don’t love it.

I would love for Airbnb to offer incentives to returning guests, but I don’t see them doing it in such a way that they’d reduce their own income.  Probably the whole business plan is based on the percentage in place.  If they can think of a way to incentivize hosts to incentivize returning guests, everyone would win.