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.

[Maria3159]

The only complaint I have is their policy to pay hosts 1 day after guests check in. Money is collected weeks in advance of guests travel (I know cause I used Airbnb to book myself a cottage in May) but unlike hotels where guests are charged and money released to the business the  very latest at check in time, we wait a full 24 hours after check in to get paid. Its about 3 days to see payments for guests checking in on Thursday to Saturday due to banking non processing over the weekend . Why is the money already billed to guests prior to travel not released after the listings latest  cancelation date or at minimum upon guest check in dates?

[Lisa1487]

Probably because they are renting site unseen. What if the rental is horrendous when they check in and their money is already deposited 

[Lilian158]

Awesome!

[Kent91]

Recently we had to prepare tax invoices for a guest and it was after this exercise we questioned what actual fee a guest pays. No issue with the 3% host fee, I figure that the advertising/booking/payment process is most certainly worth that fee.  However it would be very useful if Airbnb showed the total cost (that the guest will pay) with each transaction. 

[Lisa1487]

Your money is well deserved. I appreciate the protection that Air BNB provides

[Sidcley0]

3%não é nada para ter uma plataforma disponível e atualizada trabalhando 24hs ao nosso favor , até hoje nunca tive problemas. Acredito que nenhuma plataforma trabalharar de graça. Não sei porque tanto alvoroço? 

[Katharine33]

In the post above can you explain what an Experience host is? Thanks!

[Karen-And-Benjamin0]

go on the website it says EXPERIENCES!

[Carla741]

I have been with Airbnb for 8 months.  I am very happy about everything.  My job is to have a super clean house with clean linens & towels.  Airbnb collects the money and puts my share in the bank.  I don’t care how much Airbnb makes or what they do with it.  Good reviews bring guests because potential guests read those reviews and then sign up because they like what they’ve read.   Guests like privacy and I give them that.  I have not met a single guest in 8 months.  They are not traveling to meet me, they have plans for their vacation or destination.  I answer sightseeing, etc questions on the Airbnb message page.  All I do is clean house & change linens.  Airbnb & the guests do the rest!   Easy.  

[Robert523]

I have been doing it for three years and it has changed. In the beginning, almost every guest would want to meet, even if just briefly. This puts a human face on things and makes for a better experience. If a guest came in late on a rainy night I would go build a fire for them so it would be nice and warm and cozy when they got here and they would really appreciate the nice surprise. I have late dinners and several times a guest would get here late and ask about Safeway and I would offer to share what I was cooking with them and they'd have me over and it would be really fun to meet and learn about each other and eat some fresh fish I got from the harbor and happily shared. The guests were aware that this was not some corporate thng, but a community of people interested in other people and it was very pleasant. "Live like a local." Almost every guest would leave a thank you note, some left tips (!), once these girls baked me a cake!! Many have become real friends, and from all over the world. This is the spirit of the original airbnb and the reason it worked better is because both parties realized that they were going to be in a situation with a stranger on their property, or be a stranger on someone's property so they knew that at least saying hello made it more comfortable and enjoyable. 

In the last year, it is more like you describe, very little interaction, very few are curious about their hosts, etc. I am good with that I guess, but I like the personal touch way better. I never pushed myself on any guest and I give total privacy, but just 2 years ago they seemed interested. My place is a separate house, and I have had several guests over to my house, and even have had music sessions with some guests. This, to many of us who have done it for a while, is the way we see airbnb, so to lose that social part of it is something we need to get used to. Unfortunately.

Since it has changed, I have had more so so reviews, ill communication, and have had some really lame complaints, like last week, my curtains are too stiff! There was a problem with my deadbolt and although the guest was in touch with questions regarding secret beaches and redwood groves to go to and the best places to eat, etc, they never mentioned the lock (a 2 minute fix) and gave me a 3 star review. They also said, the first time I ever heard it, that the main bed was not comfy, but only after they gave me that annoying 3 star review, one of 5 I have ever had, 2 right when I started, 1 about a year ago, then 2 in the last week! I would have run out happily and immediately to get a mattress pad or whatever would have helped and would have immediately fixed the deadbolt, but instead I get 3 stars.

I feel like you and many others here, that this airbnb thing is awesome, but wait until you get a couple of unfair reviews about items that could easily be fixed if only the issue was brought to your attention. Then the next prospective guests will see a questionable review and you won't be so happy! It really will bug you in a deep way. Especially when you feel that the guests don't consider that you clean and disinfect everything, do all the laundry, continually upgrade your place inside and out, ask if all is well to no answer, etc etc. I send a list of secret redwood groves, secret beaches, where to rent surfboards, I have a river guide friend that will give a discount to my guests, I really cover everything they could ever want. Then.... "Your curtains are too stiff!!!" Eeesh! That same guest, after I had moved all the appliances to clean behind them, got a new faucet, painted the closets and under the kitchen sink, even dusted off the top of the refrigerator all the day before they arrived, complained that the bottom shelf of one of the nightstands by the bad had some dust on it!! Oh man, wow!!! You are sharing a house. I could list more ridiculous complaints, but you get the idea hopefully.

Again, I have read through all this stuff for years now and have wondered about the complaints, but never said anything because I knew eventually it would happen to me, and now that it has, I understand fully. I mean, I had some guests leave just 2 weeks ago, saying my place is run down and in serious disrepair, they did not contact me, and it turns out that they went to the wrong house, a house that has not been lived in for about ten years now! How could they have thought that it was my rental?? This is because they did not read the directions, which specifically state to NOT use GPS due to various reasons I won't go into here. They never even SAW the house they were supposed to stay at! So, actually, not always so easy, which is a huge shame....

All that being said, I don't have a problem with their fees though. My problem is them getting away from "Live like a local." Hmmm, maybe my post is off subject. Sorry, ha ha....

[Ann72]

@Robert523  What a great post.  Thanks for this.  I think your response to the relatively new host above speaks volumes to the many hosts who have posted here who have less than a year under their belts.

Your post really made me wish I wasn't a remote host and had been able to participate in home sharing in those days!

[Annie718]

Airbnb pressurises me to drop my tarif every week, yet does not drop their fees to both host and guest and at the same taking on more and more listings in my local area. I'm now charging 20% less than I did four years ago and my hosting costs have increased annually ! Whilst being a superhost for 4 years with a huge number of 5 star reviews, I have 30% less bookings this year than in the past 3 years while toursim and travel numbers increase annually. 

I feel totally unsupported by Airbnb who keep moving the goal post with not only having superhosts, but also now Host Plus. Despite working SO hard at maintaining my superhost standards I'm not surprised to hear my friends look at other accommodation platforms where booking fees are less.

[Karen-And-Benjamin0]

Well it would seem obvious to intelligent people that you charge fees to run the business and pay employees!! Most businesses need money to run! Common sense.Nothing is free , people! If you dont like Airbnb go somewhere else.

[Barbara1531]

Fairly new and enjoy the experience- Airbnb takes 3% of my fee - that’s all I lose. I’ve been happy with their customer service  , the handling of bookings, and my summaries. If you are on Expedia or similar platform then the host loses 50% of the rate. I am competing with other Airbnb’s and hotels. I price accordingly. As a guest I find that many nightly rates are expensive and no guarantee of quality service.   I get that higher fees charged to guests could negatively impact my bookings but not to date. 

[Robert1743]

I'm a superhost and i'm charged 3% per booking.  What is an experience host and why are they charged 20%.