Here is the transcript of the video:
👋 Hello and welcome to the “J’poster Complet” channel! Let me introduce myself, I am Clémentine, strategic pricing . Today, we're going to see together how to use our simplified pricing on Airbnb.
So, you are already going to tell me: what is simplified pricing ? This is when we are at 15% on Airbnb instead of 3% . So why go to 15%?
First, it’s for SEO . It's true that Airbnb tells us that it is better to list properties that are at 15% rather than those that are at 3%. Then they announce that when they implemented this change to 15%, there were 17% more bookings on listings that went to 15%.
Then there is psychological bias . It's true that when you have a reservation, when you see "Airbnb service fees" written in addition for two accommodation reservations that are at the same price, you have the impression of paying something extra. Because we have the “night stay” line, then we have the “cleaning fees” line, we have the “RBNB service fees” line, and tourist tax. While, in the end, it is exactly the same price that the end customer will pay. But we have this impression of paying an additional fee, whereas this is not the case when we are at 15%, this fee is simply put into the annuity.
So there is already this psychological bias. Then, we have better control of our price, because when we are at 15%, the commission taken in fact is really 15% . So, when we are at 3%, in fact, there is 3% paid by the other and there is 14.2% on average paid by the traveler. And we can't really control this 14.2% on average. We have times 13, times 14 and 14.2. And so, in the end, the final paid traveler, we can't really control how much it will actually be.
After that, in the end, no change for the traveler, he will pay exactly the same price, it's just that he will have one line less in his reservation details. And for you, it won't change anything in your pocket in the end, if of course you take this price increase into account. It's true that if you were at 3%, customers often don't take it into account too much in their price increase. On the other hand, when we go to 15%, we must clearly take it into account in our price increase, therefore at least 15%. And so, it's 15% and more in fact, because there is simply the play of percentages which means that when we increase by 15%, and in fact, we reduce by 15%, in fact, we always loses something.
So, if we take a very simple example with a price of €100. If I increase the commission by 15%, in fact, that's 115 from which we subtract 15% commission, we end up at €97.7. And so, we lose €2 and some on our reservation. Whereas if in fact I increase my price by 18%, I am therefore at 100 + 18, 118, from which I subtract 15%, and there I find myself at €100.3 and therefore I am in balance.
So, it is very important that if you want to go to 15%, to take this increase into account. So, either you have a channel manager and via the multiplier coefficients, you add this increase of 18%, or you are directly on Airbnb and you increase your prices on your calendar by 18%.
Then, how do I know if I'm at 3% or 15%? So it's pretty simple, normally. I say well, normally, if you are a professional and you have a channel manager, you are supposed to be at 15%, but that is not always the case. So, to be sure, what you can do is take your ad, do a simulation as a traveler, and you will see in your reservation details if it says “Airbnb service fees” . If it says “Airbnb service fees”, then you are at 3%. When we are at 15%, it is not written. So, that's already very simple, it's the first exercise that you can do, it's actually checking your ads, how they are configured. Because it's true that when you've had an announcement for a long time, you know more exactly what you've put in place. And then, depending on the owners and how the ads were created, we always know exactly what is being put up. So, you can already watch that.
And then how do you get to that 15% if you're at 3%? So there are several possibilities. Either it is you who created the ad and you are, let's say, the main user of the ad, and normally, from your account, you will be able to make the modification. Either you are co-owner of an ad and there, it will normally be the owner who will be able to make the modification.
And then, we have special cases. So, to be able to make this modification, you go to your Airbnb account, you go to the account section, to the payment and payment section. And then you normally have three items that appear at the top, including service charges. And when you click on it, you actually have two options. So, if you are at 3%, it will be checked at 3% and you have the option to switch to simplified pricing . So, that's ideal, when everything is going well and when everything works correctly. Sometimes, there is simply the service fee item that does not exist. And so, when you don't see it, it's probably because you are not the main host of the ad. And in this case, you must ask the owner to log in as the owner on his ad and in fact do exactly the same thing and go to payment and payment of service fees and go to 15%. If he also does not see this service fee, this also happens sometimes unfortunately, there you can call Airbnb support. You send him a message simply telling him that you want to go to 15%, and if in addition you have a channel manager, use that as an additional argument, say then you have a channel manager that you are a professional or that you are working with a professional and would like to switch to simplified pricing at 15%. And there, normally, they are supposed to put it in place. Plus, Airbnb eventually wants to move all listings to 15%, so there's no reason they can't do that. Afterwards, you should not hesitate to relaunch Airbnb, it's true that everything depends on the contact with whom you have, well, you have dealt with, it can always take a little while for it to set up, but don't don't hesitate to restart, to ask again, and at some point it will finally be unlocked.
And then, if it doesn't work, well too bad, stay at 3% and then you'll do it, you'll make do with it. In any case, I hope you liked this video. In any case, don't hesitate to ask us questions, leave us comments, and then if you liked this video, consider liking our video to support our work. 😊