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]

Come on then @Guillem2 - please fill me in on how my numbers are wrong, and how I'm not as well informed as I think? 

[Guillem2]

You will be better served by getting the data directly from Airbnb. I am only a Host and an occasional Guest.

[Susan17]

@Guillem2 

So how much does this add up to then... ??

[Jenny773]

Hi, I've been hosting with Airbnb for approx three years and can honestly say I have had no problems with them and don't begrudge them the service fee as I know it would cost me far more to market my property on my own let alone hassling with payments and maintaining a diary etc. etc.  However it does seem that you have drawn the short straw when it comes to bookings over the Summer season - I wonder have you actually tried to discuss this with Airbnb directly?  After all they commit themselves to guiding guests towards super hosts like you so you should query your lack of bookings with them.  This seems a much better avenue rather than gripe about the service fee they take.

[Susan17]

Trust me, I've discussed it with Airbnb until I'm blue in the face, @Jenny773 . 

My "gripe" isn't just about the service fee - as astronomical as it is - but more so about the service (or lack of it) they provide for that fee. It's great that you've had good experiences (so far, anyway) but have a look around the Community Centre and you'll soon see that I'm far from alone in finding this company sorely lacking. 

So you feel that Airbnb taking up to 25% of each booking is justifiable? 

[Jenny773]

Hello again Susan,

The service fees are what they are - if one feels they are exhorbitant or unjustifiable then one should look elsewhere for a better deal - after all there are many similar websites and organisations who run the same set up as Airbnb.  I used to be registered with Trip Advisor and I can assure you they charge much more, do much less and send you practically no one!  When I realised this I cancelled my listing with them.  However staying in a set up you obviously have big issues with really gets you nowhere!

[Susan17]

@Jenny773 

After 9 years, I believe I've earned the right to not only be here, but to voice my opinion on issues I see as unfair/unethical. I've already explained several times in the comments above why I'm still here. For whatever reasons, not all of us are privileged or fortunate enough to have a choice. But thanks for your input 🙂 

[Jacques281]

I have to something... it sounds like you are bitter that airbnb is not providing you with advantage over your competitors because you have brought airbnb so much over the years of hosting. Perhaps they should or perhaps  not. Are the guest fees high; yes they are. I have been a guest in several countries and have found that it is not necessarily less expensive than other travel venues but the experience is different and can be worth it as a guest. All depends on what guest is looking for. It doesn't float everyone's boat. It appears your experience as a host has been negative and that's an understatement based on your comments. You've no doubt heard the adage it takes honey not vinegar.... If you want to be an entrepreneur figure something else out. Quit wasting so much negative energy!

[Susan17]

@Jacques281 

Perhaps you should read a few of my hundreds of 5 star reviews to find out what my experience as a host has been, before commenting (rudely, presumptuously and incorrectly) My experience in dealing with Airbnb is a completely separate issue, and I have every right to voice my opinion. It may not be what you want to hear so very early on in your own Airbnb journey, but it's the truth, nonetheless. You can always keep scrolling instead of jumping on the bandwagon, if what I say upsets your sensibilities. 

[Jacques281]

I checked out your listings.  I'm sure you treat your paying guest much better than those in the airbnb community. You are rude and I'm being polite. A 3 night stay in your "chic" condo for 12 guests is over $1100 a night, that is likely in Canadian dollars so over $3,000 for 3 nights,  I'm gld that people are wiling to pay that for your place.  I would not.  I will never set foot in any of your listings and you are not welcome to ours.  I will not waste any more time with you.  Not worth it.  I wish you well. 

[Susan17]

Lol! Actually, @Jacques281, the prices I have set at the moment are Airbnb's own price tips! Also, they're nowhere near $1100 a night, so if that's what you're seeing on your end, Airbnb is whacking on a lot more than 25%, and proves my point really. Wouldn't surprise me though - I've had to open tickets with CX at least 10 times over the past few years, regarding Airbnb's system automatically re-setting the prices I had set - sometimes much higher, sometimes much lower. Just one of the many, many glitches that have plagued my account - and thousands of other accounts. 

Bottom line though - after almost 5000 guests, I still have an overall 5 star value rating, so my guests are obviously happy with my prices, and the service I provide. (Unable to see your ratings as you don't have 3 reviews yet)

I won't stoop so low as to make snide comments on your home, as you seem to feel it's perfectly acceptable to do to mine. I'm not sure where you're going with the comment on never setting foot in my place, because I don't remember inviting you. Again, you're being presumptuous. 

As for how I treat people - I treat everyone with the level of respect they deserve. 

[Jacques281]

If you could read, I said it was in Canadian funds.  I will treat you with the level of respect you deserve: my ignore list  bye bye baby!

[Ken198]

So Guillem2 you would be ok if your fee went from 3% to 25????

[Peter1691]

I have to say your comments are some of the most uninformed, nasty and frankly ridiculous I've seen in a long time.  You seem like a serial complainer ... using a vague series of cobbled together grievances to try and make your case. You will find the vast majority of Airbnb hosts and guests are delighted with their experiences ... my suggestion to you is to up our game a little and stop blaming everyone else for your problems.

[Susan17]

Lol! Up my game, @Peter1691 ?? I guess you haven't read my response to Tony above, that mentioned I'll be one of fewer than 100 superhosts in the entire world, who has earned superhost status all 20 quarters since it was introduced, 5 years ago? How, exactly, do you suggest I should up my game?? Perhaps you could give me a few tips. 

I see you're new to the Community Centre (and have just 13 reviews as a host, so not a huge amount of experience there either) My suggestion to you is that you take a good look around the CC and educate yourself a little on the grievances thousands of other hosts have posted about here, before calling me uninformed.