I had a very bad experience with Airbnb combining long term and special offer discounts in a way that it is not supposed to.
I will use round numbers to exemplify:
My place is 100, and I offer a 10% weekly discount. So far so good. I decide to offer a promotion, 20% discount.
Thus, for 7 days, the guest should pay 7 x 80 = 560, and on this value the weekly discount of 56 should apply, total 504.
Or, the other way around, he should pay 700, discounted by 10% is 630, on which a 20% discount applies, another 126, so total is 504.
What Airbnb did, and supposedly still does, is take 10% off 100, take 20% off 100, total rate 70x7=490.
So, watch out, if you offer such discounts, because Airbnb will make the lowest price for the customer, beyond what you intended.
@Sammy35 You can write in whatever style you choose to, of course. Not criticizing, just was commenting that it makes your posts difficult to read, when, in fact, I like to read them because I think you have a good perspective.
Yep - they stack discounts. So I'm about to go into my account and eliminate them. It's just not worth the hassle. They way they compute our rates is pretty awful in those circumstances.
Your two calculations are correct and Airbnb's implementation is wrong, thanks for bringing that to our attention!
Someone in the OCM team should bring this to the attention of Airbnb as it's obviously wrong and shouldn't be allowed to continue. It either needs confirming as a problem and all miscalculated discounts returned to hosts. Or Airbnb need to advise hosts that this is deliberate. Somebody needs to refer this to the relevant Airbnb department and follow it up to a decisive conclusion and let us know the reply and actions which will be taken.
I was stun by this crazy discount methodology when I first began hosting.
ABB entice newbies to offer from memory a 20% discount to the first few people who book.
They then bait one with offering a 22% discount to offer to one's guest.
Believing I was offering a 22% discount instead of 20% I offered the 22%.
To say I was extremely annoyed when I found out my guest received a 42% discount is the understatement.
In my eyes it may have been deceptive practice.
ABB were advised by our Commerce Commission to be transparent with pricing.
This is an excerpt from best page that I found to provide any details regarding how discounts are applied:
In another example, this is how the price would be calculated using a rule-set with a nightly rate rule, an early-bird discount, and a weekly discount:
Thats an excellent illustration of how manipulative the “Help” articles are, and it shoots Airbnb’s mathematical acumen in the foot. Help articles are often cited as ‘Terms’ when they’re not, and don’t often reflect the terms they’re supposed to be helping with.
Using their additive model the calculation should be:
+10-20-10= -20 = £80 Not £77
Again, the host has been robbed.
At first, I was going to say that I have to disagree with your calculation, because the combined discount is applied to the sum of the base rate and nightly rate upcharge, but I now understand what you're saying. If Airbnb were to do simple arithmetic for all percentage changes to the the base rate. It would result in a smaller discount.
Yes, I saw your original comment and You’re right - it was just about grasping the equal treatment of the discount structure. Theirs is wrong, in order to compare, you need to match their method and do it wrong in the same way.
For a host benefit I was trying to think where there might be a double rate increase where the percentages could be added, but couldn’t think of any. Then if I could have, the likelihood of that happening would be very small.
However, using additive increases (+20%+10%=130%) would not benefit hosts as much as compounding them (+20%=120%), (+10%=132%) in the same way it penalises them when added as discounts.
ABB IS USING WHATEVER THEY CAN TO LOWER PRICES TO GARNER BOOKINGS
watch your pricing discounts rates like a HAWK
I do offer long term discounts because I specifically want to attract long term guests, but I gave up on the special offer thing very early on. I didn't find that it got me any more bookings. I only once got a booking due to a special offer and that guest had no idea that he even got one. He just thought it was the regular price, so I am not sure how that marketing is actually working or how visible it is from the guest's end.
discounting functionality is pure disastrous. and people are still dickering (feeling entitled to) about discounts worse than ever thanks to covid. brought mine down to bare minimum which is more an insult than a true discount but IDC. i feel true empathy for the people that need to use this to supplement income and expenses. this was my every weekend jaunt money for concerts and music events, now there's neither, i'd rather have no guests lol, private room shared or whole house.
Yes, the 'special offer' discount is supposed to make the guest feel 'special' and that they are getting a great deal that they need to snap up ASAP, but when the guest books not even knowing they got a special offer, something is clearly not working!
My long-term discount is useful for the reasons explained above but, especially now as it's an easy way to ward off those extra discount hunters we are seeing so often due to COVID-19. I can simply tell them they are already getting a discount and that's the end of the story. Need to put my prices up though.
I have relied on this income to a certain extent. Not fully, but losing most of my other income as a self-employed person due to COVID-19 meant the loss of Airbnb bookings was a double blow. However, that doesn't mean I am going to roll over and let people come and stay in my house for next to nothing just because they feel 'entitled' to barter down a small business during difficult times. No way, no how.
Another thing to mention that is not directly responding to the original post, but related is the glitch with amendments to long-term bookings.
So, I noticed that if you or the guest makes an alternation to the dates or number of people on a long-term reservation, the Airbnb system recalculates the price WITHOUT the long-term discount, thereby overcharging the guest.
It's easy to miss this when it's say a week or month long booking as the difference doesn't stand out so much. I realised this after a guest coming to stay for six months wanted to add two nights to her stay and then informed me that Airbnb had charged her an additional £1,500! For two nights in a room priced around £38 + fees per night.
The first couple of reps I spoke to had no idea what was going on and repeatedly told me I was overcharging the guest and needed to refund her. I explained to them I had done no such thing and that all I had done was change the check in date by two days. Finally, I spoke to a rep who told me that it was the long-term discount being taken out of the equation and that it was a technical glitch they were aware of.
Despite reporting this a number of times since then (and seeing other hosts posting here about having the same problem) Airbnb did nothing to fix this glitch for years. Why?