Airbnb, a company that started in 2008 advertising itself as a cheap alternative to hotels, has been facing backlash from customers complaining about rising prices. CEO Brian Chesky addressed these concerns on an earnings call, acknowledging the frustration.
Chesky revealed that Airbnb now allows customers to view a full price breakdown before booking, including service fees, discounts, and taxes. Additionally, the company integrated a tool that allows hosts to compare their listings with others to stay updated on average prices. This led 300,000 hosts to remove or lower cleaning fees, which was a major point of contention for customers.
In response to the complaints, Airbnb started offering discounts for guests with longer stays, with over two-thirds of hosts providing monthly or weekly discounts. According to Chesky, listing prices on the site have decreased from a year ago, in contrast to rising hotel prices. The company is continuing to make changes to appease customers, recently introducing exotic experiences like a stay in a Paris museum or the house in “Up,” some of which are free to guests.
Despite these efforts, some Airbnb options remain questionable and shockingly priced. An $85 a night listing for a tent inside a London home went viral in January, sparking outrage for its limited offerings and high cost. Although the listing was removed, it has since returned with an increased price of $100 a night, or over $2,800 a month before service fees. This exemplifies the ongoing challenges the company faces in balancing affordability with customer satisfaction.
Chesky emphasized that the trend of lower listing prices on Airbnb as compared to rising hotel costs is expected to continue. The company’s efforts to address customer concerns have included improved transparency in pricing and offering a wide range of discounts and unique experiences. Chesky announced that Airbnb will invite people to apply for a chance to stay in featured properties or events for free or at prices under $100, with 4,000 winners to be selected over the year.
Overall, Airbnb is striving to maintain its position as an affordable travel option by implementing measures to address rising prices and meet customer demands. Despite the company’s efforts, some customers have raised concerns about certain listings being overpriced and underwhelming, highlighting the ongoing challenge of balancing affordability and customer satisfaction in the competitive travel industry. With the introduction of new initiatives and the commitment to addressing customer feedback, Airbnb aims to continue offering unique and cost-effective travel experiences for its users.
