Displaying total price and simplifying checkout
You’ve probably seen headlines and tweets about growing guest frustration with prices, cleaning fees and checkout instructions. As inflation rates rise and the threat of a recession looms, travellers are searching for even greater value. We’ve also heard from guests, many of whom are travelling for the first time in years, that it’s stressful to end their trips with a list of chores.
We need to work together to address these issues. Today, we’re announcing updates to display the total price up front, promote listings that are a better value in search results, make Host pricing tools easier to use and improve the checkout experience for guests.
Displaying total price
Currently, when guests search Airbnb for a place to stay, the final price at checkout can be higher than they expected because the nightly price they see doesn’t include fees. This can lead to frustration and a loss of trust.
Starting next month, guests will have the option to view the total price they’re paying up front, including all fees before taxes. When guests enable this option, they will see the total price in search results, as well as on the map, price filter and listing page. Before confirming their booking, guests can view a full price breakdown that shows Airbnb’s service fee, discounts and taxes.
Total price display is turned off by default. Guests who don’t enable the total price display option will continue to have the current pricing experience. This will not be an option in countries and regions where local rules already require total prices to be displayed up front, including taxes.
Airbnb’s search ranking algorithm is designed to help guests quickly find places that meet their needs. The algorithm prioritises your total price – rather than nightly price – and the quality of your listing in comparison to similar listings in your area. Homes that offer the best value in any given region tend to rank higher in search results.We’ve seen a growing sensitivity to price from guests as they seek affordability. Setting a competitive total price and maintaining high quality can help improve your listing’s position in search.
You’ve told us that a couple of your biggest challenges are knowing the price guests pay and setting a competitive price for your home. Starting in early 2023, we’ll introduce new tools to help you price more effectively. In the meantime, these existing pricing tools can help:
- Price preview allows you to view the final price guests will pay – including fees, discounts, promotions and taxes. To use this tool, go to your pricing settings and select “Preview what guests pay”. Enter the details of the stay, such as the number of guests and nights in the reservation, and you’ll be shown a breakdown of the guest’s total price and your payout.
- Weekly and monthly discounts often lead to higher occupancy, lower turnover and less work for you. Try incentivising guests by offering discounts on longer stays.
- Smart Pricing can help take some of the guesswork out of setting a competitive price. Airbnb’s Smart Pricing tool takes into account over 70 different factors to help determine the best price for each available night on your calendar.
We understand that it takes a lot to get your place ready for your next guests, especially when you have a tight turnaround. It’s reasonable to ask guests to do simple things at checkout, such as turning off lights, throwing food in the bin and locking doors and windows.
We’re also hearing from guests that they don’t want to do unreasonable chores, such as stripping the beds, doing laundry and vacuuming.
In the coming months, we’ll be working with you to make checkout more transparent to guests. Guests will be able to review your checkout instructions prior to booking – similar to house rules – and also leave feedback on the checkout experience.
Information contained in this article may have changed since publication.
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