airbnb is no longer profitable. When should hosts leave?

[Rocio-and-James0]

airbnb hosting community, 

We joined airbnb around 4 years ago. When we started, we were so impressed at the quality of guest and the support from airbnb, that we quickly made listings for our 2 apartments in South America and our additional studio in the US. We had the occasional bad guest here and there but we didn't mind because we simply replaced anything broken or stolen without much fuss. Our customer reviews were great; although, we had the occasional person that was unreasonable. 

In 2017, airbnb has completely changed their internal policies towards host. Guest can now make fraudulent claims and get full refunds which punish host by locking the days and giving them penalties. There are now websites that promote tips on getting free accommodations on airbnb. Add this with the competition that comes from many hosts and airbnb constantly pushing prices downward to undercut hotels. This is a recipe for commoditizing hosting where hosts are used for free labor (guest support) and to absorb value from their listings (the space). A similar thing happened with Priceline/Travelocity and airlines where Priceline now absorbs all of the value and the airlines are driven downward or go bankrupt. We now have months where we barely break even due to cancellations and refunds awarded by airbnb customer support without our consent. 

Host need a union or some real competition from booking sites. I was thinking that we should create some sort of union where all fight back against any airbnb customer support abuse or against any policies that drive our value downward.

[Edwin57]

4 years is pretty new, at first it was good right you have to understand time changes so is really unfair of you to said the changes Airbnb has made knowing that at first you were making money, yes  Iam new to Airbnb for this moment and time things as to be upgrade so for you to mention a union then you are crazy

[Mark26]

Kind of hard to follow up on that...

[Dick10]

Where to put the periods?

[David126]

There is no perfect booking system, you can read grips about any of them.

There are certainly some types of booking that seem totally unsuotable to the AirBnB environments but people still list.

You can minimise your exposure, for example being on site, not talking long term bookings.

And of course using a mutliple of different booking systems.

[Kelly340]

I love your idea of a union.  Individually we are powerless and at their mercy.  I have recently found out just how unappreciated, disrespected and undervalued we as hosts are.  Customer support is basically non existant, and Definitely favoring guests.

I spent the better part of today signing up with VRBO.  I put our rental in for a cheaper price and added better pictures too.  What goes around, comes around.   It's the only ammo I have.

Good luck,

Corinne 

[Kamran2]

But... what would be the basis of unionization.

We are not employees and are participating in a contract.

All our rights and obligations come from the terms of that contract.

We can get out if we do not like the terms.

[Alexis106]

This comment may be unrelated to your subject but can you tell me who is the CEO of AirBNB or who is in charge? So far I have not seen any names, as if I am dealing with a robot.

[Matthew285]

@Alexis106, I am not sure knowing who the CEO is will help.

The CEO is Brian Chesky; he hosted a question-and-answer livecast not too long ago.

There is no way to contact him directly (at least that I know).

What exactly do you need?

When I have reached out to AirBnB for help, I am always helped by a very human person (whether it is by Chat or Phone).

[Rocio-and-James0]

Im going to do the same and open up some competitor listings. 

Many industries start associations that protect them. Why no a host association? 

I guess we should use the word association as the word union confuses people here. Union is a concept of getting people together to fight for their collective rights.  

[Branka-and-Silvia0]

@Rocio-and-James0

we joined Airbnb las year in Jun .. and yes, we have less bookings as time goes by. There is more and more competion every day so prices are lower then ever. I already know few hosts from my area who switched on long term bookings because it becomes more profitable considering all the work, time, risk and expenses with STR.

Airbnb knows that so they are trying to bring more guests to the site but.... my opinion is that their tactics is wrong.

Instead of trying to lower prices and tolerate bad guests on a cost of us hosts, ABB should attract new guests by simplifying registration and make it quicker. To prevent misuse and frauds hosts can take their guests photo ID on arrival (it is obligated in some contries anyway ) For example bussines-third-party bookings... imagine a company with 50 or more employees traveling regulary on business . All of them should register.. and it is not a few minutes registrations process, it takes days! Who has time to do it? Of course they use other booking sites where registration is easier and quicker or just contact us directly through our own website or trying to make forbidden third party bookings., or book a hotel room....

Airbnb could also prevent a lot of problems with bad guests and gain host's trust and satisfaction by allowing hosts to actually collect security deposit , like VRBO does.

Often, simple soulutions are the best... but big companies don't see the tree of the woods... like in this epic video :)))  https://www.youtube.com/watch?v=Wac3aGn5twc

If ABB delete the link search youtube for: The Process (a.k.a. Designing The Stop Sign Video)

[Bernadette80]

The site has definitely become solely focused on the guest - as they are paying Airbnb and they don't view hosts as important or valuable as they are - afterall, without listings there is no Airbnb.

There are a lot of features and services they need to keep hosts...

[Gesia1]

We are having a problem and it is that the hotel Industry does not like us they are trashing Vacation Home rentals in the news and coming up with not allowing vacation Home Rentals in the towns. they are beeing successful. They have lowertheir prices at a cost you can not find too many clean Hotel rooms anymore,

That keeps driving our prices down. As hosts we have none to fight for us and remind the Hotel Industy that Competence makes things better. That we have the right to do this and that it doesent affect the Housing industry or Hotel Industry for free interprice is for all tastes.. Perhaps the idea of an Association  for Vacation Home Rentals  would not be a bad idea. Uninted we stand divided we fall..Also I find wrong that AirBandB lists Hotels and Resorts  and that takes a lot away from us for the prices being shown are ridiculousl low and no profit comes from that. If we formed and Association we would be recogniced and we will be more respected by local authorities.I am glad that there are plataforms like this but it could be better really the prices they are suggesting from us to charge are way too low and really doesnt cut it

[Sara494]

*The Devil Advocates*

While I do not argue with the lack of fairness towards Hosts, (down-right theft, sometimes) we must realize that this is in fact, a business.

Airbnb was originally created as a guest-rental and travel space. Many Hosts have admirably built entire businesses around the rental properties; owning 5 to 10 properties, and conducting an entire living just on rentals through Air bnb.

Here’s where the trouble comes in: AIR BNB WAS NOT ORIGINALLY CREATED FOR THAT PURPOSE. With the switch in the usership, and so many hosts using Airbnb as an Avenue to entrepreneurship, things have changed.

In recent markets, especially in popular cities, these Entrepreneurial-Air Bnb Operators monopolize local properties, driving rents up, and pushing locals out. In additional, flooding the marking with ‘professional Air bnbs’ (might as well be a hotel)

In light of the ABUNDANT saturation of Hosts, and how dramatically the usership has changed, I think it’s only logical that the platform be loyal to the guests ((although inconvenient)).

[Rocio-and-James0]

Airbnb is a two sided market created for the purpose of being a big profitable company. The bigger the host network, the bigger the offering they have for guests. The more guests, the more bookings they can offer host. Once the network effects take hold as it gets big, ABB no longer has to play nice. They can drive prices down to undercut hotels and absorb value away from host for themselves. I expect ABB to behave this way because it is a profit drive company. 

What I am suggesting is that we as host have power too but only we join forces. Guests already have inheret power because they have unlimited options. Host are limited in options.  We can either combined in some sort of way or help competitors to create a vibrant market rather than a booking monology.