Transparent Pricing

[Claire475]

With everyone’s wealth of knowledge and experience I wondered if you could give me your opinions, solutions, thoughts on this topic.

Firstly upfront I want to say this is not a complaint, I am happy with the bookings I get and with the ABB platform in general.

I raise this issue as it was highlighted to me by a guest who thought some hosts were not entirely upfront (although technically I don’t think that’s quite true) 

I list my room with private en-suite for 55€, that’s for two people in the room. No extra cleaning charges, or charges for extra people.(although a few days ago I added a small price for extra guest after 1, but I am not sure I shall keep this) As my guest pointed out to me hosts in our area have listed for considerably less, however when you check the availability dates the price is quite a bit higher, then there are considerable cleaning charges and cost for extra people after the first guest. All in all it amounts to quite a substantial difference to the price that guests will originally see when first looking for accommodation on the site. 

In some cases double or even close to triple the pricing listed. Of course smart pricing has some baring on the price difference. 

I have no problem at all that hosts market or price their homes diffently to mine, what I do wonder though,  is this responsible marketing from a guests point of view? 

Should we as hosts or should ABB encourage hosts to list their homes/ rooms within a 10% range of the price shown on the listing guest first see in their search, for example. So that guests can go to the listing and know with some certainty the price is as listed, and then just look at the different rating, reviews and descriptions in making up their minds.

From my point of view my listing at first looks more expensive but finally, in most cases, will be cheaper. 

Recently I had contemplated raising my price slightly, but what put me off is that I would then at first glance seem quite expensive in comparison to other listings, hence my 5€ fee for an extra person, which doesn’t really feel comfortable for me at the moment because I have always felt being more transparent with my pricing was the best way.

I look forward to reading your views on the matter. 

Ps. I love reading all your views on the CC, often makes me smile. In a way it’s like having friends you don’t t know! 

[Jim-and-Marcia0]

I agree with you. As both a host and a traveler, I feel the pricing needs to be more transparent. Airbnb istings used to more clear about the cleaning fee and extra guest fee and showed these up front. Now guests only see these during the reservation process or if the host reveals it in their description.

Our listing is for a whole house. We thought we could set a competive price without needing to separate out fees for cleaning or extra guests.. But we finally realized we needed to in order to stay competiitive.

For a private room type listing I do think it would be best not to add a cleaning fee. Better to factor than into the price. Extras guest fees too don't make sense on a private room type listing unless it actually requires setting up an extra bed or something.

[Claire475]

@Jim-and-Marcia0  I agree with you, just the slight problem that if I put my prices up I will look way more expensive at first glance and I don’t really want that to impact my bookings.

Strangely some hosts  rent out a room but also charge extra for the second person. 

[Sandra856]

Hi @Claire475  🙂

I do that. Charge extra for the second person. Not much around 10 euros.

I buy 2 times organic fruit/organic snacks/organic juice/beers for the guests. There is usually much more hustle and bustle and noise when I have 2 guests compared to just one. I share my very small Copenhagen home. They usually also uses the kitchen much more for larger meals. And waiting time for using the bathroom. I don't find it strange at all.

My prices are still around 1/4 - 1/6 compared to a 2-3 star hotel in Copenhagen.

Best, Sandra

[Sandra856]

@Jim-and-Marcia0 @Claire475 There was a big discussion about cleaning fees about a month ago. A guest wrote that he was very upset about that he had to pay a cleaning fee.

It is a very interessting thread. A lot of hosts do explain the reasons why they have cleaning fees. I do also have a small cleaning fee.

https://community.withairbnb.com/t5/Hosting/Cleaning-Fees/m-p/912467?collapse_discussion=true&filter...

Best, Sandra

[Sandra856]

Hi @Claire475 and @Jim-and-Marcia0 🙂

In Europe if a guest search and include dates, number of guest the price including cleaning fee, airbnb fee etc. will show up in the search. They will have to pay the price stated and absolutely nothing more than that. It is even an EU law made especially for airbnb. Of course if the guest doesn't choose specific dates, number of guests how are the system suppose to figure out the rate. 

It the same if you go to any hotel booking sites. You won't be able to see the correct prices without choosing dates and number of guests. 

[Claire475]

@Sandra856

Yes you are right to some degree, but then perhaps the price should say it’s for one person and excludes cleaning fees. 

[Emiel1]

@Claire475,

Airbnb was forced recently by the EU to make corrections the way guests are informed about prices.

As @Sandra856 exposes also. The reason for this is mentioned here:

http://europa.eu/rapid/press-release_IP-18-4453_en.htm

I suggest not to change your prices. Most guests are clever customers  and will find there way around. Listings with low prices per night, but high cleaning fees will be floating to the surface  by the new EU rules and guest will soon recognise quality pricing above "bait and switch".

best regards,

Emiel

[Claire475]

@Emiel1 Thank you Emile for the information it is very helpful. 

As my guest pointed out it didn’t sit well seeing a low price for a room and then finally being quoted nearly 3 times more when completing the reservation. 

[Sandra856]

Hi @Claire475 🙂

Could you explain in what proces your guest saw a lower price and I don't understand your answer to me or what you meen when writing that with the "1 person and no cleaning fee" I'm afraid ? 

[Sandra856]

@Claire475 if you want to see the exact price for 1 person enter the dates and 1 person and you will get the exact price.

[Sandra856]

If your guest enter dates and number of guest he will see the full price (including all fees) and if he press the little questionmark he will see how much the fees are. (See screenshots)

Maybe tell your guest the importance of choosen both dates and number of guests.

Quite often there is a big difference in price if you choose to stay a cold janurary day /compared to vacation time in July. And how are the system to know which price to show you if you don't enter dates/number of guests?

[Claire475]

@Sandra856

Thanks for all your input. 

What  I was talking about was when you initially look at a city so for example Luxembourg, no dates etc. A whole lot of listings appear. On those listings my home is listed 55€. However there are other listings for 39€ or 49 so at first glance you would be right in assuming I was more expensive. However when you go into the calendar to look at dates mine will be normally anything from 55 - 59 where as the others will be as much as 10€ or  more than the price first seen, then a 25€ cleaning, then additional if there is more than one guest. With the result being you will pay 80€ for two people in the room advertised as 39€ on the original search. 

As I said in my original post I don’t have a problem with this, each to their own, it was just a guest who brought it up to me and felt that it was just a bit misleading. I was wondering how other hosts felt. I have always thought it was better to include everything in my pricing, so the price you see is what you pay, but recently I was contemplating putting up my prices and I thought that I would then really seem expensive at first glance. 

Thanks again for your input. 

[Sandra856]

Hi @Claire475

I understand that. It is important that guests realize that they have to choose dates/number of guests. Otherwise ALL listings will show up. Many of them won't even be available. There is no way the system can figure out a price without an X and an Y.

Could you imagine a guest enter hotels.com expecting to find exact prices without entering dates/number of guests. It is my impression that most guests do know, that you have to enter dates etc. You could try an do that (enter dates etc.) and then compare your prices with those listings you compete with. I do that quite often.

[Claire475]

@Sandra856 

I understand what you are saying, it was just a guests point of view that a room listed at 39€ for a night ended up costing over 80€ for a night and the guest felt the host was not being upfront in the initial listing. It’s not due to seasonal fluctuations or dates (infact there were no nights available at the listed price available at all), it’s due to the fact that there are very high cleaning charges and although advertised as a room there is also additional price for more than one person. 

As far as booking on any other sites, I think personally, most people would not be best pleased if a room was advertised at a 100€ for a room and when you finalised the booking it was 200€. Most hotels etc at least say per room or per person initially so upfront you know what ball park you are in.