Airbnb Answers: Early Host payouts

[Airbnb]

You asked: Can Airbnb allow hosts to receive an early payout at the time of booking?

This is a great question, and one you’ve been asking for a while. We’re developing the best approach for early payout arrangements, starting with a small pilot program in the U.S. 

How the upcoming U.S. pilot will work:

A limited number of hosts will be invited to opt-in to the early payout pilot. For those hosts who opt-in, we’ll send 50% of your payout 3 days after a guest books and the rest 1 day after guest check in, for a 1% early payout fee on the booking subtotal. For reservations booked within a 14-day window, you’ll still get the early payout, but you won’t have to pay the early payout fee.

Long-term reservations (28 nights or longer) are not eligible for early payouts. For reservations booked more than 4 months in advance, we’ll release the 50% early payout when the check-in date is 120 days away.

If a host or guest cancels a booking after an early payout has been made, that amount will be deducted from your next payout(s).

We’re excited to see how this program goes, and would love to hear your thoughts on the concept. We’ll keep you posted on future opportunities to get your payouts early!

In the latest Host Q&A, CEO and Head of Community Brian Chesky answered top-voted questions during a livestream event. For questions he didn’t have time to address,  we’ve introduced the Airbnb Answers series. Want to ask more? We’ll invite hosts to ask their questions before the next Host Q&A event!

[Marjorie82]

So  airbnb gets one percent taken out of 50% of the early payout. And the other 50% of the payout Airbnb takes 3%

Is this correct or does Airbnb take another 3% out

[Nicholas231]

As a host coming on two years or so, i definitely see this as a positve move forward for us hosts to have an option for early payout, yes there are the certain conditions ser forth , and 1 percent etc , but also remember the alternative of not being paid out until the day after of your reservation check in, thus these numbers add up over a long period of what rental income you receive and the time its in your hand or not. i personally thank the move forward in this direction to the airbnb management that we are being given these options, and its just the first step, and i do personally see airbnb contiously molding and adapting the platform and structure in a postive direction. so give it a thumbs up and at the moment and still proud and happy putting my listing and property and future family properties on your social platform. 

Nicholas S. 

[Heather57]

Airbnb should not charge a fee for this... infact.  They should pay out in full (minus hosting fees) and pay us 1% interest on the money they keep until check in.  If a bank took my money for months it would pay interest.  VRBO pays out in full at reservation.  If Airbnb wants to compete I would suggest offering the same.

[Merridy0]

Why would i be excited about being charged a fee for receiving MY money earlier? The amount of ‘positive spin’ you try to put on all your rules is laughable. 

[Richard907]

What does it take to qualify.  Sign me up.  Thanks for opening up the subject.

[Bets0]

I suppose if a host has multiple high-cost listings, it might be cost effective to pay 1% for an early payout. Otherwise, seems like too much bother and cost for minor minimal benefit. 

[Grayson0]

Airbnb should explain why they hold the money until check in anyway? 
Because of this policy, I close off important holiday dates to airbnb bookings. 

I'd rather not have a late cancellation which ABB deems within 'extenuating circumstances' and refunds the guest and leaves us high and dry. In the traditional rental direct model, hosts have guests payments and deposits and guests must adhere to the cancel policy or lose funds. ABB model is to mostly allow guests to cancel at the last minute leaving the host high and dry. No thanks. Why not have 2 rates. Non-refundable rate that is deposited next day to host. And refundable rates where guests pay more for privilege of right to cancel. I'm sure most hosts would choose only the former. 
Thanks for taking our feedback. We receive great guests from ABB. We just don't like being disempowered by the system. 

[Rebecca112]

There should be no 1% payout fee.  Airbnb gets paid up front by millions of clients, and makes interest off that money while it is sitting in the bank for weeks to many months.

[Yvonne128]

I think it is a great idea. There are times I turn down a reservations, because I don't want to block my calender and try to get a longer reservation.  Or I really want to get a reservation sooner to get some cash flow. 

[Dianne32]

I think this is a great idea, I am certainly willing to pay 1% for early payout. I realize that AIRBNB makes money on our transactions, and appreciate every AIRBNB ad I see on any media. I know that $ are being spent that I benefit from with increased bookings. Thank you

[Christina307]

@Lizzie wrote:

Hello @Lisa723,

Thanks for sharing your comment here on this. 

If you were to offer early payments, how would you like it to work?

I completely agree.

I understand that it’s a pilot, but it wld be nice if we cld “choose” the amount to be paid out- UP TO 50%.....WITHOUT THE FEE!!!!

1% isn’t that big of a deal now; but, we all know that fee will be raised, over time. And, if Airbnb is collecting the money so far in advance, why shouldn’t the business owners have the option to take advantage of upfront payment?? I mean, we could be better hosts- using the money to buy items needed for the guests that are checking in.

I would love to be a part of the pilot!!! 

[Kim674]

Love this idea, but I don’t like the fee. Between the additional hotel occupancy taxes I pay and the fees Airbnb takes, seems like Airbnb could do it without a fee.  

[Diana-and-Dick-and-Wade0]

I agree with Heather in Granby, MA. It is akin to how banks work now: it's "free" use ours or guests' money ($.01 a month for a $20,000 balance at my bank).

We should not be REQUIRED but be able to opt in or out, depending on hosts' needs.

[Debora106]

Wow!  After reading the comments, I guess the real question is “Why am I not doing VRBO?” 

[Daryl22]

I don’t see how this is really that big of a deal?  If I book 20 nights amonth I’m always having cash flow coming into my account.  What does it matter if it’s person A or person B money?  You are paid within days of last person checking out anyways.  The only host I see that would be excited about this are the ones that are bad with money and live week to week.  Not trying to throw any shade at anyone.  Would anyone like to give few examples on how this is a great idea?