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

[Gary D]

The wife just had a big house in Baguio for 10 and paid about 4800 pesos per night

[Jollygoodfellow]

26 minutes ago, Gary D said:

The wife just had a big house in Baguio for 10 and paid about 4800 pesos per night

Ten guests or can accommodate 10 persons ? 

[OnMyWay]

On 10/13/2018 at 1:02 AM, Jollygoodfellow said:

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.

I'm just back from our one night stay and I will try to write about the specifics in another thread.

Yes, I have seen how they manage pricing and wondered if this recent manager was doing it manually or in another way.  He has 7 condos for rent in the resort and I was tracking them for a few weeks.  The calendar for all 7 was open for our date until middle of the week.  Every few days the prices would go down a bit and then the 2 BR units were all gone Thursday night, and the 3 BR went down, so I booked a 3 BR.  I don't know if he was able book the other 2.

This is a 5 star beach, pool and golf course resort, but I still think the prices are way too high, compared to the value you can get outside of Luzon or outside of the Philippines.  I'm embarrassed to tell you the "bargain" I got after watching the price drop.  p9500 base price for 4 people + p1250 for the 5th head = service charge p1490 = total p12,240. Separately p600 per head X 5 for entrance to the resort of which p300 was consumable at the restos.

We will not be using the condos again but we would like to go back to the resort.

[Gary D]

35 minutes ago, Jollygoodfellow said:

Ten guests or can accommodate 10 persons ? 

Ten guests, would accommodate more at 300p per head.

[Jollygoodfellow]

2 minutes ago, Gary D said:

Ten guests, would accommodate more at 300p per head.

Yes trying putting 10 into a hotel at the price you got more so the area so good deal. 

[OnMyWay]

 

On 10/13/2018 at 7:49 AM, scott h said:

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

I suspect you are right, but still, even rich Filipinos want value for their money.  When they see that a local resort costs more in Luzon than they paid in Singapore or Hong Kong or Hawaii, don't they hesitate and wonder for a moment?

Philippines is supposed to be relatively cheap, right?  How can they demand Int'l 5 star prices at some of these places when the areas are surrounded by poverty and slums?

[Jollygoodfellow]

6 minutes ago, OnMyWay said:

Yes, I have seen how they manage pricing and wondered if this recent manager was doing it manually or in another way. 

A host can do it manually or some of both. For example for certain dates the host just goes to their calendar and click on whatever days they decide and turn off smart pricing and then put in the price they want for that date. 

 

[OnMyWay]

On 10/13/2018 at 8:04 AM, Rooster said:

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.

 

 

Yes, I see that in Subic and there are often crowded weekends.  Subic hotels are at around 60% average capacity and there are hundreds of new rooms being built.

[OnMyWay]

1 minute ago, Jollygoodfellow said:

A host can do it manually or some of both. For example for certain dates the host just goes to their calendar and click on whatever days they decide and turn off smart pricing and then put in the price they want for that date. 

 

You reminded me of something I forgot.  The condo we stayed in is already booked for Christmas.  Out of curiosity, I put in 5 week nights during the week before Christmas.  Asking price:  p49,000 per night!!!!

[Jollygoodfellow]

Just now, OnMyWay said:

You reminded me of something I forgot.  The condo we stayed in is already booked for Christmas.  Out of curiosity, I put in 5 week nights during the week before Christmas.  Asking price:  p49,000 per night!!!!

If I owned the condo and someone was paying the price I would be happy.