Air BnB Prices in Luzon - Why So Friggin High?!!

[OnMyWay]

A bit of a rant!....

This is not just about Air BnB but also about Luzon beach resort prices.

Air BnB works for us as a family of 5.  Hotels that will take 5 in a room are hard to come by and very cramped for us.  For the past few months we have been shopping for a place less than 2 hours away for a staycation, and the prices blow me away.  Even the beach resorts that are simple 1 and 2 star at best charge a lot.  A small family room at one we were interested in up around San Narcisso was going to be 9-10 k for 2 nights.  Others down in Morong were also high 5k + per night.

We decided to go ahead and book a condo for just one night at a nearby 5 star golf and beach resort.  It is costing an arm and a leg, but is our postponed birthday treat and pre-mature wedding anniversary treat.

For comparison, I looked at Air BnB prices in a bunch of other places:  Davao, Dumaguete, Cebu City, Manila and even Honolulu.  Everything is a much better value than Luzon!  Even Hawaii!  I'm seriously considering a future trip to Hawaii after seeing the Air BnB prices for really nice homes.  I know other costs are high but I have been looking forward to taking my family to Hawaii.

Any idea on why prices are so high around Luzon?  Who pays these high prices?

[Jollygoodfellow]

1 hour ago, OnMyWay said:

Any idea on why prices are so high around Luzon?  Who pays these high prices?

Depends on location. Beach, golf course and things like that will be higher.  Also you have probably 2 adults and 3 kids which ups the price. From now to maybe March prices increase. What most hosts do is use airbnb smart pricing where in the settings the host sets the lowest price they will accept and the highest. Then the system decides the price by demand, availability, how many are search in the area ETC.

[JJReyes]

I have given up looking for an Air BnB in the Philippines. The problem is the lack of logic when setting up prices. The owners throw out a number hopping someone would be willing to pay. It is the "rich kano" mentality. Another problem is the owners borrow photographs from a neighboring unit. You show up and it is nothing like the photos on the web. They won't give you a refund if you try to walk away.

[scott h]

7 hours ago, OnMyWay said:

Any idea on why prices are so high around Luzon?  Who pays these high prices?

Here comes my two pesos. Living on Luzon, in the Metro area specifically. There is a lot more money than folks might think here in the Metro area. I will give one example of what I mean. 

There is a resort called Villa Escudero about two hours south of Manila, we always take visitors there. Its not cheap to stay there but very picturesque with many attractions, each time we visit (always on a weekday) the parking lot is full with lots of visitors, very few forginers. I wont bore you all with a lot of examples but we often take a drive to local resorts for lunch and most of the time they are pretty busy with wealthier Filipino families. 

So IMHO there are a lot of upper middle class and upper class Filipinos who are willing to pay for a day or two escape from the rats nest of Manila

[Jollygoodfellow]

52 minutes ago, JJReyes said:

I have given up looking for an Air BnB in the Philippines. The problem is the lack of logic when setting up prices. The owners throw out a number hopping someone would be willing to pay. It is the "rich kano" mentality. Another problem is the owners borrow photographs from a neighboring unit. You show up and it is nothing like the photos on the web. They won't give you a refund if you try to walk away.

You obviously have had different experiences than me. I have stayed in several airbnb condos here in Cebu and they were exactly as described. As I said, airbnb has smart pricing options which set the prices. How do I know, well I run Cebu Condo Services and manage airbnb condos for our clients. There are all sorts of things that would make you think about not presenting what a guest might expect because once you start getting bad reviews you may as well close up. 

No a host cant just give a refund but their are channels to go through with airbnb if one has issues.

[Rooster]

8 hours ago, OnMyWay said:

Any idea on why prices are so high around Luzon?  Who pays these high prices?

Supply and demand and a lot of the market is from Manila where they want to get out of there for a short period to relax. Tourists as well.

When I drive south from La Union, I pass many vehicles with Surf Boards on the roof, all heading north to San Juan & it's frequented with famous actors/actresses from Manila. When I drive north on the TPLEX I see many with surf boards on the roof driving south returning to Manila, especially on a Sunday. The major project below is being built now in San Juan. Many other projects being built because of demand. Gerry's grille just opened in Bauang. Years ago one would see mostly tourists at resorts, now I see mostly locals. Same with Boracay it's mostly locals now. A Middle class is rapidly growing here and they have expendable cash.

 

 

Edited October 13, 2018 by Rooster

[JJReyes]

16 hours ago, Jollygoodfellow said:

You obviously have had different experiences than me. I have stayed in several airbnb condos here in Cebu and they were exactly as described. As I said, airbnb has smart pricing options which set the prices. How do I know, well I run Cebu Condo Services and manage airbnb condos for our clients. There are all sorts of things that would make you think about not presenting what a guest might expect because once you start getting bad reviews you may as well close up. 

No a host cant just give a refund but their are channels to go through with airbnb if one has issues.

I should have qualified my post by saying the problem was in Metro Manila.  I haven't stayed at an AirBnB in Cebu.   We like Airbnb (not VRBO) because our travel style is to stay a minimum one week at each location. Overall our experience staying at European and South American Airbnb apartments and condotels have been good.  

[Gary D]

For a family an airbnb in manila can still work out a lot cheaper than multiple hotel rooms.

[Reboot]

AirBNB has been good for me personally. First time was Makati where I met the missus. Another was Puerto Princesa. Then El Nido. A few months later, a month in Cebu at a gated location near a golf course.

Sure I got some good deals via the coconut telegraph. But for someone without access at some times, it was better than every other option I had easy access to. 

That said, I haven't relied upon it for a larger party as our original poster friend requires. Might be a different world then.

 

Edited October 14, 2018 by Reboot

[Jollygoodfellow]

Its also worth noting if you book a few months in advance the price can be much cheaper than to try finding a place a week before but on the other hand if a host has vacancies between bookings then often they ( or the system )  will reduce the price to fill that gap so it's the chance you take.