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!

[John1080]

A 1% fee? haha No thanks. I am happy to wait until 24 hours after guests check in to receive my payout.  Another way for AirBnb to nickel and dime hosts. 

[Shirley201]

I do not want to be paid until they checkin. Managing your income is easier

[Joseph401]

I love the idea of receiving money early (50%). Airbnb is still holding 50%  of booking. But charging a fee for paying out early is not a good plan. I would suggest that Airnnb encourage hosts by sharing a bit of interest that they earn by holding the booking money.

Lets look at the other side of the coin. Guests have to pay a huge amount of money for a 30 day booking. This will deter many guests booking through Airbnb compared to hotels charging the guests at the time of check out.   I would suggest Airbnb collect 50% from guests at the time of booking and pay 50% of that to hosts without any additional fee. This way it is a win win situation for all. 

[Cheryl-And-Bill0]

I hope we will have the opportunity to opt out of this new feature.   I'm already out the 3%, I don't want to pay 4% under any circumstances.   I like knowing that I have all that's due me after the first night. 

[Aurora52]

Heather,how do you get paid in advance from VRBO?

[Kim-And-Fred0]

We got invited to do this, but I do not like the 1% surcharge.  Also I like knowing the amount of money generated per month per listing, so we declined the invite.  Kym and Fred www.theslaterhousepdx.com 

[Joe470]

I like this idea.

I've paid 9 - 15% to Clearbanc to loan me money based on my future earnings. If I only had to pay 1% to get 50% of my earnings upfront, I'd consider that a much better deal.

I'd even pay 2% to get all the money at booking. 

The crux of the matter is: How much interest is AirBnb earning on the money it holds from booking to payout? If hosts are willing to pay the same or more, we both win.

[Kim677]

So now we have to pay to be paid!!! Lol

[Gina265]

This needs to happen. I’ve been calling trying to be included in the invite for all my properties. I don’t think the cancellation policy should have anything to do with being on early payout. I have my properties set on strict due to lose of income the day before checkin with no hope to rebook. Especially on larger properties. Even setting to moderate with only 5 days to rebook larger homes isn’t likely going to happen. The risk is too high. How can I be considered for early payout? Airbnb holding my funds for reservations doesn’t seem fair. Holding half til checkin I can deal with. My payouts don’t hit my account til usually after the guest checks out which is around 4-5 days after checkin. I’m very happy with the site and how it works but payout is extremely hard to deal with.

[Lisa851]

I suppose this would be useful when it is off season and cash flow is short. I personally don’t like the idea of possibly having to pay back any money due to cancellation, so I will continue to wait for day if check in to get my payment. Thank you Airbnb for continuing to address hosts requests and concerns. I couldn’t have such a successful business without the brand recognition and the great app and support you have put I place. 

[Peggy152]

Right on, when people book with me directly my contract says I get 20% at booking, 35% midway to the date of arrival and 45% 2 weeks before arrival. If they cancel then I keep the 1st 20% for having it off the market and possiblly losing the time. If I rebook I refund the 1st payment. This encourages them to let me know right away. It is rediculous to have to wait months and then get paid after the guest arrive. 

[Cheryl229]

I would like the 50% ahead of time, but not if it involves a fee. We're already paying fees, so this counterproductive. The other side of getting it early is that some hosts may spend that money, and not have it on hand to refund if required. We always keep a surplus, but I'm sure many hosts will not. 

[Gloria320]

Once a reservation is booked Airbnb should automatically payout 50% without an additional fee being charged to the host.  Especially on an ongoing long term reservation.  The remainder can be paid out upon renewal date of reservation or checkin date.  Airbnb is still making interest on the funds they charge guests in addition to platform fee.    It seems hosts are giving more yet getting less with Airbnb than other sites.

[Marco304]

Why not release the 50% fee of long term reservations to Superhost without the 1% additional fee? After all superhosts have proven they are trustworthy, can't cancel reservations otherwise lose the status and it could be an enticing benefit to achieve and keep superhost status... At the end of the day Airbnb is still making interest on the money they hold for the other 50%... Just saying!

[Doug-and-Darolyn0]

I am with most of the others on this.  Other sites send money upfront with no fee.  It would be nice getting the 50% early but I really don't believe that the extra 1% would be worth it.  The suggestion that Superhosts get to waive the 1% fee is a  good one.  A win-win for both Airbnb and the hosts.