Airbnb's New Pricing - Rates Now

Airbnb's New Pricing - Rates Now

Member since 2022 · 527 posts · 413 votes

Has anyone done a market check since Airbnb updated their pricing last week?  I did.  I'm guessing some folks were PMS connected and didn't change rates as my market is looking pretty funky right now (rates well below $90/night which is unheard of).  The only thing I can think is that some people didn't update their rates to include the new 15.5% Airbnb fee and they look crazy low in the market.  This will impact the entire market if folks don't update their rates and hosts will be shockingly surprised when they see their revenue sharply decrease.  I'm sure this will work itself out once new bookings come in at these shockingly low rates.

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Mike GrudzienPro Member
Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
11mo

Yes, you better check your rates.  It's almost like you're running a business......

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  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    11mo

    Yep. 

  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    11mo

    Yes, you better check your rates.  It's almost like you're running a business......

  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    11mo

    Haven't checked. I'm not integrated so I don't think it affects me.

    If it did affect me maybe Airbnb would actually get me some bookings!

    • Member since 2022 · 527 posts · 413 votes
      11mo
      Quote from @John Underwood:

      Haven't checked. I'm not integrated so I don't think it affects me.

      If it did affect me maybe Airbnb would actually get me some bookings!


       Effects everyone since you will now have comps that are looking outlandishly low.

    • John UnderwoodPro Member
      Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
      11mo
      Quote from @Patricia Andriolo-Bull:
      Quote from @John Underwood:

      Haven't checked. I'm not integrated so I don't think it affects me.

      If it did affect me maybe Airbnb would actually get me some bookings!


       Effects everyone since you will now have comps that are looking outlandishly low.


       Not if your bookings come mainly from Vrbo.

    • John UnderwoodPro Member
      Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
      11mo
      Quote from @John Underwood:
      Quote from @Patricia Andriolo-Bull:
      Quote from @John Underwood:

      Haven't checked. I'm not integrated so I don't think it affects me.

      If it did affect me maybe Airbnb would actually get me some bookings!


       Effects everyone since you will now have comps that are looking outlandishly low.


       Not if your bookings come mainly from Vrbo.


      My real money is made from my portfolio of LTR'S. My STRs are for fun and they make money too.I don't have all my eggs in the STR basket.

    • Investor · Placitas, NM · Member since 2019 · 106 posts · 61 votes
      11mo
      Quote from @John Underwood:
      Quote from @Patricia Andriolo-Bull:
      Quote from @John Underwood:

      Haven't checked. I'm not integrated so I don't think it affects me.

      If it did affect me maybe Airbnb would actually get me some bookings!


       Effects everyone since you will now have comps that are looking outlandishly low.


       Not if your bookings come mainly from Vrbo.


       VRBO is doing some tweaking, too.  The just rolled out a 10% early booking discount that was automatic unless you actively opted out.

    • JD MartinBusiness Member
      Moderator
      Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
      11mo
      Quote from @Randy Dubiskas:
      Quote from @John Underwood:
      Quote from @Patricia Andriolo-Bull:
      Quote from @John Underwood:

      Haven't checked. I'm not integrated so I don't think it affects me.

      If it did affect me maybe Airbnb would actually get me some bookings!


       Effects everyone since you will now have comps that are looking outlandishly low.


       Not if your bookings come mainly from Vrbo.


       VRBO is doing some tweaking, too.  The just rolled out a 10% early booking discount that was automatic unless you actively opted out.

      I just got the email yesterday or the day before. I deleted the "promotion" immediately, of course. VRBO and Airbnb and Booking have got all the discounts they are going to get from me. They want to juice bookings? Cut your own fees. I'll leave my place vacant before I lower my prices any further. There has to be a line in the sand or there's no point in doing this at all.
      Skyline Properties
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  • Interior Decorator · Nationwide · Member since 2017 · 44 posts · 35 votes
    11mo

    You are seeing the real-time fallout from the Airbnb switch to the Host-Only Fee for those of us using a PMS.

    What happened is simple: a ton of hosts who were previously paying only the small 3% fee completely missed the memo about raising their base rates. They got automatically transitioned, and since the guest service fee is now gone, the total price the guest sees is way lower than it should be. They're basically handing the guest a massive discount because they didn't do the math.

    The good news is that this market funk is temporary. As soon as those unprepared hosts get their next payout and see their profits chopped, they'll scramble to raise rates. The bad news is that your dynamic pricing software (like PriceLabs or Beyond) is seeing these new, lower bookings and thinks the sky is falling, trying to drag your rates down too.

  • Investor · Warner Robins, GA · Member since 2015 · 1k+ posts · 490 votes
    11mo
    I expect this is happening in nearly every market right now 
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    11mo

    This will work itself, in the interim the cheap folks will get picked off first still leaving fruit for those of us who updated prices.

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