Monthly discount not being applied

[Ciarán3]

Hi, I'm based in Ireland and I applied a monthly discount to my apartment, but the discount isn't being shown in the end price seen by the guest. My base price is 160 euro per night and I have a 25% discount on stays of 28 nights or more. This should work out at a monthly price (i.e. 30 nights) of 3600 euro (4800–1200), however the end price for the guest is shown as 4081. I don't have a weekly discount, nor do I have smart pricing set or any other promotions applied. 

In the preview that the guest sees of the end price, the monthly price is shown as 5301 for some reason.

 

Does anyone know what might be causing this? I have a minimum rental period of 2 months but this shouldn't have any effect on the monthly price.

Thanks in advance.

[Shelley159]

Hi @Ciarán3 

In your screenshot it shows that the monthly discount definitely is being applied (the line says "monthly stay discount 1220"). So that is being deducted from the 5 300 total.

We have to find the difference between the total before monthly discount (5 300) and the total you entered (160 x 30 = 4 800).

The difference (500) is about 9.4% of 5 300. 

We can try to work it out if you specify which of your listings the screenshot relates to, and what dates you used. It looks like you ended on 1 August, but you require a 60-night minimum stay, so I haven't been able to replicate the stay in the screenshot.

[Ciarán3]

Hi Shelley,

Thanks for the update. My listing is the "Modern 2 bedroom apartment Dublin city centre". 

Yes I have a 60 night minimum, so if you enter any dates over 60 days e.g. from June 1st to September 1st, you'll see the issue.

You're right, the total before the monthly discount is incorrectly shown as 5300, so I need to know why this is.

Regards,

Ciarán

[Shelley159]

Here are the amounts I can see for 1 June to 1 August @Ciarán3 

Before monthly discount my quoted total for one month is 5841.

The amount you showed that you entered is 160 x 30 = 4800.

The difference here is roughly 18% of 5841. The difference looks like the Airbnb service fee plus VAT on the service fee.

I tried to look up the applicable VAT percentage for Ireland, but your VAT rates seem to have multiple layers (I'm used to only two, one of which is zero! 😀). I'm guessing Airbnb's online marketing service doesn't fall under "accommodation" but rather under general services taxable at 23%?

I think the difference you're looking for is the Airbnb service fee and the VAT on it.

(I've assumed that there are no other complications like cleaning fees and on the screenshot it looks like smart pricing is turned off)

[Shelley159]

[Ciarán3]

Hi @Shelley159 

You could be right. The way Airbnb charges guests and hosts seems to have changed in 2025, and it's pretty confusing to say the least. The VAT rate for Ireland is 23%.

Shouldn't the final cost to the guest show a breakdown that includes the service fee?

I'm pretty sure it used to in the past. Now there's no mention of the service fee that the guest needs to pay.

Regards,

Ciaran

[Shelley159]

Hi @Ciarán3 

Yes you're right, Airbnb now displays total cost (one also can't see something like a cleaning fee in guest view, it's all one total price). 

Another change is the switch from split service fees (host and guest) to single fee. Many of us are still on split fees, but I think the idea is to move everyone to the single fee.

[Ciarán3]

Ok @Shelley159 , I just realised in my Settings I have the option to set my pricing as either split fee or the new single fee. I'm on split fee which would explain the difference in the 30 nights x 160 euro (4800) v the 5300 the guest is seeing.

So is it better to stay on the split fee or move to the new simple fee? If I move then I would need to increase the nightly price if I wanted to earn the same amount, is that right?

[Shelley159]

Yes @Ciarán3 

Hosts in the UK (and Ireland?) are being moved to the single fee structure. For now you have a choice, but there will soon be a mandatory move.

If you change to single fee you have to increase your price to still earn the same. There's supposed to be a tool that can do that for you. Please check whether the tool is in the app or the website (or check your emails from Airbnb). I'm unsure as I've read about it multiple times here, but I'm not seeing it myself yet (as I'm not in the UK).

If you make the adjustment correctly, there should in most cases be little difference in what you get out and in what the guest pays. It's just that the full service fee is now deducted in one place.

I would first make a note of some of my transactions (host payout and guest payment), especially some for future dates. That will help you to check that you set prices correctly and that things stay more or less in line after you make the switch.

For tax, the full service fee is now part of host turnover:

1) The main disadvantage is for large-scale hosts who may now become liable to register as VAT suppliers sooner. 

2) Also, there may be income tax incentives in the UK that apply to hosts with  a turnover under a certain limit.

I'm not sure whether the 2 things above apply to you, but they relate to tax filing. They will only affect your Airbnb prices if you also need to recover such additional taxes.

[Shelley159]

Are you a member of a local host club @Ciarán3 ?

I can't think of any regular contributors from Ireland here in the CC. It would be good if someone could confirm whether the mandatory "UK"  switch applies to you.

[Ciarán3]

@Shelley159 thanks for all the answers, much appreciated. I'm a member of the Dublin host club so I could ask there