What is the value of value, especially to a first time guest?

Laura2592
Level 10
Frederick, MD

What is the value of value, especially to a first time guest?

We have been back and forth on pricing. Consistent advice here is that we need to raise our nightly price, and have been pushing it up over time. We had a first time user of Airbnb guest give us a 4 on a recent stay---they were not even booked when our price was what its at now. One of only 2 ever "4s" in the Value category (the other was also a first time Airbnb user) I do wonder what these guests are comparing us to.

 

Value is, to me, up there with location as the categories that need to be removed. Location is something guests CHOOSE and barring any undisclosed freeways or trains running through the property, I really don't see how it can't just fold under "Accuracy."  I know we have discussed this before...ad nauseum. But I really do wonder what "Value" means to a new user. Compared to a hotel with room service and valet parking? Or an actual inn with breakfast served? We don't call our cottage "luxury" anything though it is nice and well kept. So how are people making this judgment?

 

 

Maybe the HAB can get rid of "Value" and "Location"!

 

43 Replies 43
Clare167
Level 10
United Kingdom

@John5097 while I agree with you that the value category is not irrelevant, I definitely would not limit price just to avoid the odd lower value score. Sensible prospective guests will not be put off unless the average value score is below say 4.3. Similarly, location.

We could just accept that the review is the guests'report on their experience and evaluation of the stay. It's not a judgment on the host personally, and it doesn't matter whether the host could change or improve the aspect in question, or not.

Chasing perfect 5s will just make hosts unhappy and push them to cut their own profits.

The mass loss of superhost status could be a blessing in disguise, helping hosts to take a more healthy attitude.

@Clare167 Rates don't have much impact on reviews. For me there are other things that improve the value of a listing. I don't drop my rates to book last minute ever. Guest wait until last minute to book hoping to find the best deal. I wouldn't be surprised if most of you do that who are compailing so much about other guest chasing reviews. I think you guys are making too much about price and assume because another host is getting 5 star reviews they must be cheating or something.  This is what my hands looked like when I was renovating my listing. Every time someone mentions an amenity in my review I remember installing it. For example my most recent review loved shower and endless hot water. Guess who installed the entire custom shower, replaced all the gas lines, and installed the new hot water heater? I was under the house so long I was having bad dreams and would wake up at night thinking I was sleeping in my crawl space. That's not chasing five star reviews, and I don't ever drop my rates to book last minute. Just saying there are other ways to add value to your listing than the rates. I may go up on mine but would expect lower occupancy rates. So far my guest are very well behaved so I don't mind. 
IMG_1467.jpeg

Hello @John5097 . I did not mean to offend, and I am well aware from your posts that your listing is a labour of love and clearly, awesome value. That's why I don't think that it would be a good idea for you to limit your price below what Smart Pricing suggests. You wrote earlier that you would do that or might do that, to avoid getting dinged on value. There's really no need. In the unlikely event that someone gives you a 4 for value, it doesn't matter. Or that is my opinion.

@Clare167 ok thank you for that. I actually lowered the max limit after reading this thread. You may be right about that. My last guest who dinged me for value, the only 3 star ever on the subs, told me they loved it and would be back. Right away I thought time to go up on rates. I really like keeping rates a little budget friendly, but not if I'm gonna get dinged for it. I only adjust mine down $4 for max price so its not a big deal. My range from min to max is $9 difference. I prefer having set rates for weekdays and weekends but advantage of smart pricing is it gets a little cheaper closer to reservation so keeps those nights filled first and people who want to plan way ahead can pay just a little more. Thanks for the advice. I'm keeping it a little lower because they don't have their own thermostat for AC in summer and would need to charge about $10 more for that, and they would break it. Its really brutal climater here and AC will freeze up if set below 70 or they leave the widows open. The utilites are only about $10 more a month for attached apartment so kind of pass that on. Its really comfortable so everyone was fine. Appreciate your comments. 🙂 Yeah, I really enjoyed applying some skills for my own project instead of working on someone else's house. 

@Clare167 I wanted to emphasize  that some features of  Smart Pricing is cultivating guest who are literally waiting till the last minute to book in hopes of getting a lower rate. Espically in past two months I had a lot of cancelations and more often than not guest booked last minute. Like I said I don't drop rates for last day bookings. That was also one of the guest I just mentioned who booked last minute and obviously displeased I didn't drop my rates. If host have huge range of rates between guest that's not an ideal pricing model. Other listings in my area all went from higher than mine to dropping them like a rock when second wave hit, while I maintained the same rates throughout and ended up with better guest. I did say that I wouldn't want a 4 star review to save $5 is exactly what I meant. Host who have extreme range of rates for guest on the same weeknights to me would be a poor pricing strategy. I only started using Smart Pricing because it finally came very close to the rates I alread set. Before that it was always too low. I see other host increase rate for a weekend two months out that hasn't booked to $140 then offer a weekday a week away for $60. I don't take that approach, and use a an average. I'm not chasing  good reviews nor am I chasing bad ones. I really don't care how any other host wants to price their listing. It has no impact on me or my overall strategy. 

It's interesting @John5097 . Demand in different places and different circumstances will vary. Pre pandemic I found that most would be guests only wanted a night or two and only at the weekend. The only workable approach was quite significantly higher pricing at the weekend. Last summer, of course people were desperate, foreign travel being so risky, and I was able to require longer stays, and to let exactly when it suited me. The guests were less grateful, though, and reflecting now it strikes me that probably they didn't really want to holiday in England. If I return to letting, I will have to experiment with price and stay length all over again. I agree though with not making a big price drop as the date draws near. It's better for me to leave the place empty than suffer the wear and tear, and do all that work, at a low price.

@Clare167 demand is really what it comes down to. I liked just having a set rate. I cut out some amities, number of guest, pets, don't drop rates last minute, to avoid the stress, which affects the rates as I'm being more selective. If I have another listing it won't be as magical as this one but might have partners who have different skill set so agree it all varies and interesting to learn what approach other host are taking. Most people are usually reluctant to change including me so it happens in increments.  

@John5097  Because I only host one guest at a time, so don't need to have extra guest charges, and am already budget priced for the area, my listing has been the same price every day of the year. No weekly discounts or anything like that.

 

I 've raised it by a couple of bucks every year to cover rising prices of utilities and amenities, but I don't raise and lower prices for tourist season, weekends, etc.

 

I've just found that to be easy and don't want to spend time mucking around with pricing, checking out what other places are charging,  it avoids guests wondering why they are seeing a lower price than they paid for some days after they booked, and me forgetting to raise the price for holiday weeks and then being upset because someone booked at a lower price than I could have charged.

 

And I don't know if it has anything to do with that, but I've never experienced the pricing glitches other hosts report, with them inexplicably changing or other wonky things.

 

@Sarah977 I think thats the best strategy. I just activated smart pricing last week. I set the limits on min and max so close to my set rates, I'm going to just go back to set rates. I do price weekends a little higher. Smart pricing was only $5 more than my weekend rates, and I set the max to only $3 more than what I had been set. The advantage of having consistent rates is that guest will go ahead and make a reservation when they want it. I also keep it at good value so I get better quality who book way in advance. I was surprised so many guest wait until last minute. I known this because I don't drop rates and surprised they will usually wait until just before midnight or day of. The have to get approval for day of booking. One of those this week, booking for monday and tuesday on Sunday night at 11:49pm then canceled day of check in at 10am. I got first night and half of second night payout and never got a message from the guest. Other last day bookings are always more issues, like turning up the heat to 81 degrees.  BTW I set the limit on the smart pricing because I'm likely going to go back to set rates, and don't want a guest paying more than a few dollars more than others. I agree guest will notice if they paid more. I noticed other listing in the area similar to mine has one set rate for every day all year, a good value, and guest just like it. No way I would follow the recommend prices on Smart Pricing. 

Mary996
Level 10
Swansea, United Kingdom

Soldering burn? Well done for doing your own upgrades @John5097 . I do mine too.

@Mary996 Taking out a brick wall to add in a window. Although I did get a soldering burn also.  lol Not a good idea to wear shorts when soldering. That's awesome you like to do your upgrades also. Its really fun. I get real antsy and love working. Here is the wall, had to go through a lot of walls that was hard on my hands, but no permeant damage.@Mary996 I'm so glad you get it!! This entire process was so much fun! 
IMG_1457.jpegIMG_1631.jpeg

@Mary996 The widows don't match exactly. Same brand, same demetions. Someone retuned them both. One on the right first, then about 3 weeks later I saw the second on one the left. The only difference is the one on the left has hurricane glass so the transom ended up being a bit smaller opening because the larger frame. I got them for 70% off and no one complained. I got most things for 60% - 90% off. 

Mary996
Level 10
Swansea, United Kingdom

Incredible product reductions @John5097. Looks amazing too and any difference is barely visible apart from a very slightly wider section as you point out. Love it xxx

Mary996
Level 10
Swansea, United Kingdom

Wow! Yay that's fantastic. It looks beautiful and all that extra light will be amazing.

I'm a Sparks but also used to do some plumbing and soldering joints, though now there's a lot of push-in piping. What do you think of the new tubing instead of copper?

Fred13
Level 10
Placencia, Belize

@Laura2592 You have two variables going at the same time: the concept of value and simultaneously the fact the guests are 'new' and one hopes they are educated enough to know what the stars really mean. 

    I wouldn't worry too much about the 'value' category, but do my best to educate the newbies on star rating.