Price per person is a terrible way to price your Airbnb and is hurting business.

Tice56
Level 2
Waterford Twp, MI

Price per person is a terrible way to price your Airbnb and is hurting business.

I rented a 5 bedroom for 6 people. The total is $1425 or $285 per room.

We found 5 more people interested in going. The price is now $2030 or $406 per room.

 

My wife and I, the total cost was $285. Now due to more people coming we have to pay $406 or we decide to bill per person and pay $370 with  the rooms that sleep 4 guest paying $740.

 

Price per room should be going down, not up. These prices should be per room and if you want to be more uncomfortable and sleep more people in your room then it will cost less per person.

 

I understand more people use more utilities. 5 more people does not increase the utilities by $750 over the course of 4 nights.

 

This business model is terrible and leaving a bad taste in my mouth. I use Airbnb nearly every trip I take (about 5 a year) and will be reconsidering due to this practice. If you want to charge per room please do that, I understand there is more to clean and maintain. $750 increase because 5 more people are coming for 4 nights is ridiculous.

 

I've only ran into this twice and I'm done with it. Its a scam. Charge what you want for your home or per room!

16 Replies 16

What I struggle with as far as pricing my Airbnb is it can fit 6 people so I see it and the market dictates that the fare price is roughly $600 a night.  But if I list it as $600 a night now my place is to expensive for the couple, just two people, looking for a place.  So I see it as.  Advertise for $200 a night for two guest and then charge an addition $100 per guest and in this way I have an option for larger parties and option for couples. I think this may answer your question of why charging per person makes sense .  

The only gamble on my part as a host is if the couple (2 people) rents my place months in advance then that's leaves my place not available for larger parties  equalling missed income. 

I believe the solution here is to advertise as $600 for the night and then slash the price down for last minute bookings.  Interested to hear others thoughts.

Zheng49
Level 10
Toronto, Canada

Do you think a surcharge of $15 per (extra) person (per night) is fair though? That's how much I am surcharging. 

 

It's not just a matter of extra utilities, which I don't really care about. However, the extra noise, etc. that comes typical with an extra person is something to consider from the host's point of view.