Tag Archives: airbnb rate change

Busted After a Vegas Host Decided to Cancel

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My nightmare began in April 2018 when I booked a Condo in Las Vegas for the SEMA convention. I selected a two-bedroom two-bath, five minutes walking distance of the convention center. I thought I had done my homework: I looked at all the reviews – all was well, so I booked.

Five days before the convention was to start (seven months later), I received a notice that my reservation had been cancelled. Out of the goodness of their hearts they gave me a 10% rebooking fee credit even though the prices showed they had tripled. I called Airbnb and they said the host had cancelled for security purposes… whatever that means. What it means is the owner got a better offer elsewhere.

I stopped by the condo and it was rented during the convention. After countless messages and multiple phone calls I ended up with a place at three times the rate, of which Airbnb only picked up a third. I have since learned and I want everyone to know that hosts tell Airbnb what they want to charge for a night and then Airbnb sets their price according to the demand. If you think you are safe after you book, you are not.

“Smart Pricing” is a Zombie Algorithm from Hell

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As new Airbnb hosts, we set our base price at $50 a night – low for our area – and chose “smart pricing” and “instant booking” so that the algorithm would make our listing more visible in searches. We got lots of bookings right away and quickly became “superhosts.”

However, Airbnb’s “smart pricing” tool never respected our minimum, listing the guest suite for as low as $35. We called Airbnb for help. The Airbnb representative suggested switching off “smart pricing” and manually resetting our prices at $50 on weekdays, $65 on weekends. That was on September 30th.

That night at midnight, every open date on our calendar reverted to a sub-minimum price. Every time we’ve tried to fix it since then, the algorithm overrides our prices while we’re asleep. We have worked with five customer service representatives and counting by chat and by phone so far, and no one can fix it. Each has insisted on manually resetting our prices for us, or having us do so, with the same result.

For 30 days now, the correct prices have disappeared again each morning and our listing has been advertised at far below what it’s worth – an exhausting, stressful waste of time. None of these customer service representatives has been able to explain why “smart pricing” keeps posting our place at sub-minimum rates, rather than our desired $50 or more. They all promised to try to find answers, but no one seems to have access to anyone with the authority to resolve it.

We now have a guest coming at a rate of $35. We are asking Airbnb to either cancel this reservation with a full refund to the guest, or pay us the difference. One said she would try to get Airbnb to pay us the $15. We appreciate that. It’s not much, but it’s the principle at stake. When we’re cleaning the toilet between each guest, we do want that money.

I’ve told them by phone and text messages (all saved, along with images of the bad prices on our calendar) that we’ll be demanding the difference from Airbnb for any future reservations made at below-minimum prices. One representative also asked if we would switch off “instant booking” to avoid getting more reservations at sub-minimum rates, but I pointed out that our listing is already harder to find with the “smart pricing” button switched off, so removing both that and “instant booking” could send our listing in some sort of oblivion, and Airbnb could then simply forget about resolving our problem.

She did relay that a software developer insisted this isn’t a bug. The developer apparently wrote that once ‘smart pricing’ is applied, those prices will remain after “smart pricing” is switched off, for every date initially affected by the pricing tool, until those dates are history. Apparently, each time we try to make a pricing change, this outcome is extended in time, into the future.

They also acknowledged, finally, that this should be bumped up to a “senior” developer. For more than a month now, customer reps have asked for our patience while Airbnb’s software denies us the right to either set our own prices, or use a dynamic pricing tool that doesn’t go below our minimum price. This is a major bug that contradicts what Airbnb promises its hosts. We are running out of patience. “Smart pricing” truly is the zombie algorithm from hell.

After Confirmation, Airbnb Host asks for more than Double the Money

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On August 5th, my husband and I booked a one-month long rental for a house in Aruba, inland in the Noord area, not near the beach. The total was CAD $2161.23 for the two of us from January 31st to February 28th, 2019. A daily rate of $145 had been posted, but once I put in the 28 days, a more favorable monthly rate had popped up and we were happy with it, though a 28-day rental falls under a Long Term Cancellation Policy and the first month is nonrefundable. In our case this meant if we had to cancel we would not get any money back.

The same evening I received an email confirming our reservation and payment of $2161.23, and the full payment has since been debited from my visa account. I thought we were all set. Three days later I received a message that the host wanted to change my reservation; if I agreed to the change I would immediately be charged an additional $2908.37, for a new total of $5,069.60.

We were in shock. We thought there had been an agreement and commitment from both sides for $2161.23, but in the meanwhile the host had left a message saying that the daily rate for that period was $335 (much higher than what was advertised on the web site), but for a monthly stay it was $3,500 + the cleaning fee + a 15% service charge.

I called Airbnb. A polite representative took my information and said someone would be in touch with me soon and try to resolve the issue. Within the same day an Airbnb support staff called and explained that the host was new at this (I figured that already since there were no reviews – something I should have seen as a red flag), and obviously does not understand the Airbnb smart pricing system, though she had agreed to it. Obviously she had also agreed to automatic confirmation.

The staff member gave me the sense that Airbnb wanted to give this new host a break, let her out of her commitment, and issue us a full refund. She told me that we had the choice of either accepting the new price (more than double the original one), or agreeing to a cancellation of our contract with a full refund, and they would send us some suggestions of other listings.

While we sympathize with the predicament of the host, we don’t think this is a fair solution for all parties. Because in the meantime I looked in the area and could not find a comparable listing in terms of location, features, and pricing. I told Airbnb that we were really looking forward to renting this particular house and don’t want to rent another, but it seems Airbnb is siding with the host. They said I could email the host and tell her we want to stick to the original agreement and price. I just did that, but I don’t see the point; if the host had been okay with that price we would not have this situation now.

I will post an update once I have it. By the way, this unexpected increase in pricing is not new to us with Airbnb, except that in the past it happened when I made inquiries with hosts prior to booking. It seems that once they know you are interested in a certain time frame, they increase the price before you have a chance to book. I also discussed this issue with the support staff, but her answer was that it was then up to us to book or walk away from it. Are there no ethics in business anymore?

Airbnb Changes Payment from 1300 to 221 Euro

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On July 6th, 2018, I accepted an instant booking for travelers in distress in Paris. For two nights in high season fashion week for a group of eight people the price was high: 1300 euro. However, I accepted them under normal pricing guidelines due to the huge occupancy.

I had a group of eight people arriving and stayed one night of the two nights; the next day at 4:00 PM an email from Airbnb stated they had cancelled. I was paid 221 euro in the end. As the group left at 4:00 PM I could not manage a big cleaning of four hours immediately (it needs to be booked) and I had paid extra night service for keys. I also requested 150 euro, and nothing was paid when I needed to pay them a bonus and for a taxi and emergency service.

The only comment was that Airbnb decided to change the price to 221 euro. Whether this is low or high season, for eight people it’s a joke; even one night in a hostel one would pay 550 euro for eight people due to high season. I am beginning to file a claim with a lawyer as nobody was able to comment or give merit to that price adjustment and I even wonder if Airbnb did not get 1300 euro and paid me 221 euro.

I am happier on booking.com because sincerely they would not alter my price or cancel a booking or be silent. The insurance of Airbnb in another case is not working so there is no advantage at all dealing with Airbnb. If they banned me, I simply would not care because I am on another platform which is fair. Airbnb is a thief; no one should alter an agreed contract between the buyer and the seller making the price 1/8 of what it was.

Beware: Airbnb Price Scam for Long-Term Stays

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Beware: if you adjust your Airbnb reservation during your stay, Airbnb will apply the current (i.e. the most expensive) price retroactively to the beginning of your stay. For example, let’s say you make a reservation for $100/night for four weeks. After the second week, you need to leave early and you and the host agree to do this. But the pricing model (if it’s dynamic pricing – which is chosen by the host) shows the rate to now be $150/night. Airbnb will charge you $150/night for your entire stay. I recently had this experience and was overcharged $400 – and Airbnb does not give a damn about it. On top of this, Airbnb will charge you for an extra 30 days because of their long-term cancellation policy – which Airbnb will waive if you and the host insist on it. Airbnb also removed my negative review of the host, stating it violated their policy – even though I spoke honestly about the nightmare I experienced.