What happens to your hosting fees

[Airbnb]

At a recent Host Q&A event in Sydney, Ben, a Superhost from Brisbane, Australia, asked a great question: What happens to the money Airbnb collects from hosts and guests as service fees? We thought it was such a fantastic question, we wanted to share a few behind-the-scenes details with you here.

You probably know that as a host you’re charged a service fee whenever a booking or Experience is confirmed. For home hosts, the fee amount is usually 3%*, and for Experience hosts, it’s 20%. In most cases, guests are also charged a service fee when they book on Airbnb. A full breakdown of the fee model, can be found in our Help Center. 

So what exactly happens to the money that’s collected? We redeploy it into three big categories that help support you as a host and an entrepreneur: community support, marketing, and product development. Here’s a closer look at how your fees are deployed to help power Airbnb:

Community Support

One of our top priorities is making sure we can support you if you have questions or need support.  As we mentioned at our last Host Q&A event, we're investing a substantial amount of resources into our Community Support team to ensure we’re there when you need us, and that we can help you with your question or concern smoothly and efficiently. In the past year, for instance:

• In the last few years, we’ve tripled the size of the Community Support team to help you get answers more quickly, in your preferred language. (And it’s helped: over our peak holiday season this past year, for instance, 80% of calls were answered in less than one minute; and this year, we’re committed to improve this even more.)
• We built a new process online to make it easier to connect with us—via phone or our online chat system—and help you get to the right person, right away. Now you can find the phone number you need and access the chat system almost immediately.
• And finally, we launched new tools so our agents can easily understand a hosts’ issue and can respond efficiently and consistently.

We will continue to make improvements and invest in our Community Support team. In fact, one improvement that’s happening right now is that we’re splitting the team into areas of expertise. This will help us connect you more quickly with the right person to address your particular concern. We’ll be using an intelligent routing system to direct your question to a Community Support agent who is specially trained to address your question. We’ll be introducing this program globally in the next few months.

What other ideas do you have for improving the Community Support experience? We’d love to hear your suggestions in the comments section, below.

Marketing

Another topic we know hosts care a lot about is getting enough bookings to meet their individual goals. We help to drive that through significant investments in marketing to guests. Through our marketing teams, we ensure that guests around the world think about Airbnb first when they’re making their vacation plans. We focus mainly on three types of marketing:

• Marketing to guests in the ‘real world’, through traditional advertising channels (think TV ads, billboards). These are typically tailored to specific local markets. Already this year, for instance, we’ve had major ad campaigns in Mexico and Brazil, and there are more that will roll out around the world later this year.
• Marketing to guests in the ‘digital world.’ We also have close partnerships with Facebook, Google, the iTunes app store, and other digital platforms to ensure that Airbnb has a strong presence in the places where our guests and other travelers are spending time online. It’s crucial that Airbnb—and your listings—show up high in search results when travelers are looking to book trips and that’s why we spend meaningful money here on your behalf.
• Marketing to guests through Airbnb-specific channels. The Airbnb website and app and email are the other channels we use to help drive guest demand and additional bookings to you. On the website and in the app, we create travel-inspiration articles and collections of listings travelers search for frequently, such as beachfront properties. We also send booking reminder emails when guests have been searching for a place to stay but haven’t booked yet.

Product development

Finally, our last significant bucket of spend is around product development. Airbnb employs thousands of engineers, designers, and product leaders who build the tools and infrastructure that power your business. They focus on keeping Airbnb up and running (ensuring our technology platform is strong, fixing issues that arise), and they develop products specifically designed to make it easier for you to host and succeed.

Recent examples include tools to make reviews more fair for hosts and the newly redesigned Guidebooks feature. The latter helps hosts give guests local recommendations and create a more welcoming, memorable experience overall. (It’s also a lot of fun to use!)

Let us know if you have any other questions about fees and how Airbnb spends them in the comments section, below. We love to get your feedback.

*The Airbnb host service fee may be different in certain cases, and is typically higher for hosts in Italy and for hosts who have a Super Strict Cancellation Policy.

[Susan17]

What I'm stating is entirely factual, @Terri35, and there's a mountain of evidence to support my claims, both here in the CC and all over the internet. You, on the other hand, simply waded in with the snide insults and personal attack - and very little else, apart from totally inaccurate information. 

I'm perfectly entitled to voice my opinion, as you are yours. Feel free to keep scrolling past, if what I have to say discombobulates you so terribly. 

[Terri35]

Yes you are free to voice your opinion, as am I . Now I really do not care how you feel about airbnb. I am more than happy with the service I receive, the guests that I have come to stay. And the fee that I receive.

I would also take you to task on the backing that as hosts we get from airbnb. in my experiance and others who I know hosting through airbnb. Its about the best on offer out there at the moment. Thats not to say it cannot be improved, but compared to the opposition its pretty good.

I would also just ask you to read your own replys before making the comment that I have made snide remarks and personal attacks. You may be rather surprised at your own response to many others...

I have no argument at all with airbnb, I would expect you to respect that as that is my honest opinion, and I really do not require you trying to tell me I am wrong. As I am more than capable of working out whats good and what is not for my situation.

[Sarah977]

@Terri35  This is a public forum and everyone here is allowed to express their opinions, their research, and their experiences. The moderators here, thankfully, do not censor the expression of our opinions, but they will censor personal attacks, which your posts here are bordering on. No one here speaks for all hosts, we only speak for ourselves. If you don't like it, don't read it.

Having experience with holiday rentals only means you have experience with hosting, not with this company. 

[Terri35]

And how do you know how much experiance I have with airbnb. Please if you want to make a comment please make it an informed one.. And I will say again I have not made any personal attacks on anybody just given my informed opinion.

[Christine1]

@Terri35 

can you please tag your comments, so that it's easier for other readers to follow the converation. I cannot tell to whom it is you are replying.

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@Terri35 wrote:

And how do you know how much experiance I have with airbnb. Please if you want to make a comment please make it an informed one.. And I will say again I have not made any personal attacks on anybody just given my informed opinion.

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Beast regards, Christine from Wombat's at Glenbrook.

[Serge12]

I have a solution for Susan17: leave Airbnb and start your own Irishbnb . I wish years ago I had the brainstorm of starting a rent a bed / couch etc... Today I would be one of the great new internet billionair wiz kids. Good for you Airbnb. Potential guests contact me and I and I alone choose to welcome them or not. That’s all I have to do. I’m a happy Airbnb host

[Siobhan76]

Well said Terri35.

[Francisco188]

Hi Susan im new here, so what i understand is that AirBNB changes what it charges guest and me as commissions as they please???? 

[Christine1]

@Francisco188 in San Diego,

https://www.airbnb.com.au/help/article/1857/what-is-the-airbnb-service-fee

and you can see further discussions between Hosts in the Airbnb Community Centre. When reading and evaluation the content,  be cautious as some information may be out of date, and occasionally it's inaccurate. 

https://community.withairbnb.com/t5/Hosting/What-is-the-percentage-of-the-guest-service-fee-What-is-...

Hope these links are helpful to you.

Please note that Airbnb have a FAQ Frequently Asked Questions page. It is an online advisory resource with a virtual library of questions , with clear concise company answers. .

The Help Center begins with a landing page where you select Hosting enquiries or switch to Travelling advice.

https://www.airbnb.com.au/help?audience=host

From there you can have a quick scroll through the main topic areas. 

If you have a specific issue and want to quickly locate information on a particular matter; head straight to the search tool; type in a keyword for the topic and it will through up a list of frequently asked questions  [FAQ's] with Airbnb's official response to guide you.

It's a really good resource and makes great bedtime reading for the diligent host who wants to be in control and get ahead of problems. 

The Help Centre motto is ...

"3 Questions a day, keeps confusion away."

Best regards, Christine from Wombat's at Glenbrook.

[Ken198]

Yes they are a business, but you Terri35 are the deluded one if you have never read their own policy for how some listings are promoted higher in the search than others. Very little of it has to do with the guest picking your listing over another. SMH

[Berniece0]

When I use Airbnb the high fees do make a difference of which and if I choose that Airbnb location. So it's not true that guest aren't turned off by high fees whether it's a cleaning or any other booking fee!!

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[Ann489]

@Terri35     "If you are not happy then go else where."    This is a childish and ignorant remark.   If Susan won't say it, I will.    A lot of us WOULD  go elsewhere if we had viable options. 

[Craig33]

Hi Susan,

i have also also been a super host consistently for about 18 quarters. I have never raised or lowered my price in all those years even though Airbnb recommendation is to charge much less at certain times. Over the years my income had dropped because there are so many in the area I live in, so I just keep plugging along and resist lowering my price to compete with others you have accommodations that are crap. So I do understand how you’re feeling. 

[Susan17]

Thank you for your comment,  @Craig33 .You've hit on the crux of the problem really - Airbnb has become all about quantity, rather than quality. Towns and cities worldwide are now bursting at the seams with Airbnb listings, yet Airbnb continues to aggressively recruit even more new hosts in those markets, in order to skyrocket the figures in the run-up to an IPO. 

The fallout from that strategy is catastrophic for small, independent hosts in such cities, as the chronic drain on long-term housing stocks, coupled with the explosion of anti-social behaviour from guests in unmonitored listings, impacts hugely on the quality of life for local residents, inevitably leading to ever more draconian regulations and clampdowns across the globe. (Regulations that invariably wipe out the small hosts, but are largely ignored by the huge commercial operators, with hundreds or thousands of listings each - a massive fine that would cripple a small host, is just a drop in the ocean to the big players. Cost of doing business)

The other main issue with Airbnb's stratospheric growth is that - despite being a $38 billion tech company -  they have repeatedly failed to put the adequately-functioning infrastructure in place to support the unprecedented numbers of users on the site. Constant serious bugs and glitches, abysmal customer service, frequent financial irregularities, opaque/elastic policies and practices, complete lack of cohesion, transparency and leadership throughout the entire organisation, etc etc. 

It's like watching a car crash in slow motion. Sadly. 

[Paul347]

Hi Susan.

You are based in Dublin, which, as presumably you are aware is home to the largest Airbnb admin office outside of the USA. Have you spoken to your local online community manager to arrange a face to face meeting? I have done it here in London, and although they are not going to solve all your woes overnight, it should give you food for thought as to how to progress  to keep on top of this very competetive market. I see you have 2 whole properties each accommodating 10 guests.Sounds like the ideal recipe for stag/hen party groups-If this is your target market then you have to expect all the baggage that that comes with.  

Your post would not appear so negative, had you addresssed the very reasons that your bookings have slowed down to a trickle and then explained what 'You' have done to stop the decline of your business. Airbnb are just one of many platforms out there.

I began to see a small decline for the first time in bookings in March this year. I asked around,got a feel for the general state of business play and took the decision to increase the number of platforms I am listed. The result were phenomonal! I am almost fully booked now for July and August and have actually increased my rates on last year to maximise revenue to pay for the increase in commision charged by other platforms. 

If someone were to ask me to chose one particular Airbnb booking rules- it would be to increase the commision charged to the host and  decrease the charges added to the client.

This would bring Airbnb into line with other similar worldwide platforms, making it much simpler for guests know immediately  what the bottom line is.

The base rate, often quoted on the initial listing is rarely available expect in very quiet months

Then there is this millarky 'Cleaning fee'

The initial rate is often x 1 guest with increasing charges per extra guests

Plus Airbnb charges

So, what appeared to be a nice room at a decent price initially- ends up being twice that price- often comparable to local hotels.

So, Susan, look at other platforms

Look at your product

Change the 2 products that you have to 6 products- One listing for each bedroom, sold seperately.

If this all sounds too much hard work then use a multiple room 3rd party to fill your rooms,check guests in and even change the laundry.

Negative thoughts and posts full of whines and moans with emotional comments such as 'Car crash in slow motiion ' will never ever earn you  a dollar! or put your occupancy levels into reverse from their present decline. It really is all up to you as a self employed person.

I hope this helps.