Wrong calculation on my payout

[Katie-and-Andrew0]

For my latest relatively long term booking, Airbnb did a very wrong calculation for me.

I have used smart pricing, setting the minimum amount of $150NZD per night, with weekly discount of 5% and monthly 10%.

For the booking, the guest booked for a whole month, Airbnb allowed 45% of discount!

I questioned this with the Support team, the answer came back was that it was me who allowed the discount for the specific month. 

I have never ever touched or offered any discount to this guest nor any month. 

I went into my account, closely checked all my settings, nothing indicated a 45% discount. 

I ensured that the minimum nightly rate being $150 again and again, with $50 extra after 2 people.

And then.....Guess what!!

Another guests have just booked!

For 3 guests, 3 nights, Airbnb charged them $88 per night!!

Has this happened to anyone else?

Who can help me to solve this problem?

Whose responsibility for the error? Am I crazy, or do I have any misunderstandings for the whole price setting function?

[Emiel1]

@Katie-and-Andrew0 

"the answer came back was that it was me who allowed the discount for the specific month. "

So did you check this ? It is in most cases the right answer.

it is not about a percentage, but about a fixed price for that month.

And also check if you have set a price for specific weeks !

[Pat271]

@Katie-and-Andrew0 

The discounts are taken *off of* your minimum price, not *down to* your minimum price.

Here is another post on this:

https://community.withairbnb.com/t5/Help/Confused-about-how-long-term-discounts-are-figured-when-sma...

[Robin4]

@Katie-and-Andrew0 

Don't fiddle around with pricing or discounts, it's better not to commit to offer a discount hosting than lose money on it.

There are two points I would like to make.....

I/....... guests who chase discounts tend to be the poorer quality of guest. Nothing will ever be cheap enough but they will still expect 5 star service and if it is any thing less they will never remember that they chased the cheapest price, they will just remember that you offered it to them and it didn't meet their expectations!

2/.....Do not offer up-front discounts, if Airbnb can screw it up in the guests favour, they will. Don't you find it strange that Airbnb never passes on to the host more than the discounted amount, it is always less, always.

I do not offer up-front discounts! That is not to say I don't offer discounts, I do, but I do in the form of a refund at the end of the stay when I can assess what discount refund might be appropriate and I state that in my house rules.

Smart pricing and length of stay discounts are a shortcut to financial disaster, they are not designed to help you the host, they are designed to entice guests to book with Airbnb rather than escape to another booking platform. They are simply a revenue generator for Airbnb!

Take control of your listing and know where you stand.....I do not offer discounts, but I am fully booked month after month. I have never had a disputed payout and I get a better, less troublesome class of guest who is more interested in the stay than the discount! It works.

Cheers.........Rob

[Katie-and-Andrew0]

Hi Rob,

Thank you so much for your reply, I found this is quite useful. I guess I have learnt my lesson here, turning off smart pricing and discount right now! And it’s a very good idea to offer a discount/refund afterwards. 
Many many thanks for the tips.

Best

Katie

[Robin4]

@Katie-and-Andrew0 

Your post tells us that Airbnb have absolutely no concern if you lose money by accepting a reservation. There would not be a host in the world that could accept a payout of -48% off the listing price.....but Airbnb considers that is a quite acceptable thing to ask you, the host, to do.......and in fact actually blames you for not being more diligent in checking your calendar pricing settings. 

Don't get involved, don't give them the opportunity to play games with your money, set a nightly price and stick with it........no options!

Katie, where this up-front discount thing comes un-stuck, a guest will book a 14 night stay for a 25% discount, cancel the remainder of the stay after 7 nights and be refunded 6 nights (the host gets to keep 1 extra night) at the pro-rata nightly rate, and the host gets stiffed into providing a 7 night stay at a 14 night discount and ends up with 7 un-bookable nights!

There is no upside to that, and not offering discounts has not had the slightest effect on the volume of my bookings, just the quality of them.

All the best, stay safe there 'over the ditch' Katie!

Cheers..........Rob