The Major Changes Airbnb is Making To Its Prices
Airbnb price structure has changed. Under the new price policy, potential customers can see the total cost for the rental they are interested in before they book. The vacation rental giant will now display the total price, that’s including all taxes and fees, from the start instead of after the booking is initiated.
The company has simplified its prices, making things easier for customers. The previous Airbnb price structure often left customers annoyed and angry. While rentals seemed affordable, customers would soon find out that after fees and taxes, they would cost hundreds of more dollars than what was originally displayed.
The change in the Airbnb price structure will include a detailed breakdown of all costs. The breakdown will display just how much taxes, service fees, cleaning fees, discounts, and other things cost. This is the type of transparency that many customers were asking for.
In addition to the structure in display of Airbnb prices, the way that potential rentals show up in searches will change. Instead of preference based on the nightly rate, rentals will show in preference of total price. This new algorithm will place a listing with higher quality and the preferred total price higher on the display form.
The long-time policy that was previously in place has been completely reversed. Customers were fed up with the misrepresentation of Airbnb pricing. Luckily, the company listened and made steps to make customers happy.
Airbnb price has been questioned for many years, not just how they display it either. Customers have complained about variations and fluctuations in price once they have searched, reserved, and in some cases, fully booked and paid for rental properties. The company has received major backlash from this price fluctuation.
Customers were finding Airbnb prices to change, increasing in most cases, after they initially looked at a property or opened the website in a new browser. Some prices increased by as much as 20% in just a 24-hour period. This type of increase led many to believe that the company was using data collected by cookies to maximize its profits.
Individuals who have listings on Airbnb were also finding that their properties would be listed higher than the pricing that they had set. There is a feature, smart pricing, that essentially adjusts the Airbnb price as it sees fit. Listers can turn this feature on or off, but somehow, the prices they set were increasing without their knowledge.
Some users have even called the vacation rental company a scam or a sham. Airbnb price for listing properties has also increased. The rental company now receives a 15% cut from listings. Hosts were previously paying 3% to 5%.
That is a massive increase in how much Airbnb profits from each host. Airbnb price structure is really the least of its worries as the company has been facing legal troubles. Three Airbnb renters recently died due to carbon monoxide poisoning.
The mothers of the Airbnb victims are currently preparing to file suit against the company. The deaths were completely preventable, and the company is currently working with authorities to conclude an investigation surrounding the tragedy.
