New Airbnb Simplified Pricing

[Yiwei3]

Hi hosts, I just saw that Airbnb is giving people in the US an option to pick simplified pricing where you pay 15% and the guests pay 0.  They are saying it comes with increased bookings.  Has anyone had that experience?  From what I see, the nightly rates are higher but there's nowhere in search that explains there is no service fee.

[Maria1534]

The same thing is happening to me. I had to drastically reduce my prices to make my listings appear more competitive in the search results. I'm trying to turn it off but cannot find the option. I really hope they don't force me to stick with it. It's greatly hurt my bottom line. 😭

[J-Renato0]

Most of the STR platform do not charge the guest directly. They use the system that Airbnb call simplified pricing.

[Dave1074]

Anything that Airbnb recommends will be BAD FOR YOU.  Bet on it, especially when your price will be 15% HIGHER THAN your competition where the guest pays for it. 

[Margaret444]

AGREE.  The overall payment the guest has to make is the same at the end of the day, but in searches, especially using the map where the nightly rate is shown, your property suddenly seems to be 15% higher than comparable properties that are not using "simplified pricing".  So your property gets clicked on less and chosen less.  I immediately saw a decline in my booking rates after choosing this option, and after two  months, I have turned it back off.

[Jazmin25]

How did you turn it off?  I cannot find that option

[Maria1534]

Same thing happened to me and now I cannot find the option to turn it back off. The way they organize the search results makes no sense. It hurts us hosts that want to be transparent with our prices.

[Ben5065]

1. Click on your Airbnb profile on the upper right corner.
2. Click Account Click Payments and Payouts
3. Click Service Fee
4. Choose Simplified Pricing or Split Fee Pricing
5. Make sure to click SAVE

[Amine198]

in my account the step 3 do not appear at all, there is no "Service Fee" at all

[Mike-And-Jane0]

@Dave1074 how do you work out that the guest will pay 15% more?

[Dave1074]

Hi Mike and Jane,

The typical guest fee is 14.2%, not 15.  Then a host fee of 3%.  This will help: 
https://www.airbnb.com/d/commissione-semplificata-guida

A host who uses simplified pricing must charge more or make less, as Air charges the host 15% not 3%. So, if your local competition is not force to use it, their listed prices during a Search are less than yours. 

All recommendations from Air are bad for hosts.  Simplified pricing only makes sense if everyone has to use it. 

[Carol-and-Javier0]

Hello! I switched for simplified pricing and my bookings have increased, but only because I constantly publish it on my Instagram page. I contacted Airbnb support to verify why my listing don't have the banner saying that we will take care of the fees as hosts; I've seen another listings with this banner and ABNB support only told me that it was an experiment and that they will let me know after november. 

[Alison890]

Just want to add my feedback on this. In summary... If you go with the Simplified Pricing option, your host fees INCREASE from 3% to 15%. 

INITIALLY this program was rolled out as an option for hosts to 'cover guest fees' aka take on the cost that Airbnb charges guests when they book. It was an easy no-brainer to say no. I definitely wasn't interested in my costs increasing. 

Since then, Airbnb REBRANDED this to 'simplified' pricing. I didn't pay close enough attention and saw the airbnb example of... 'your earnings stay the same, but the guest sees a different rate per night'. however, it is up to you as the host to increase your prices in order to offset the increase in host fees. 

There has to be some tax benefit to Airbnb by charging the hosts the full 15%. As a guest, sure it would be nice to have one less line item to look at during check out but at what cost to the host. Airbnb has intentionally made this pricing option opaque. 

[Maria1534]

It's terrible because when people run a search, listings with the old structure will show up as having a lower price than those with simplified pricing so people will go with them instead, even though in the end they end up paying more in the end. I'm trying to turn mine off because it has really hurt me, but I cannot find the option anywhere (and no, I do not use a third party application). My advice is, don't do it!

[Ben5065]

1. Click on your Airbnb profile on the upper right corner. 
2. Click Account 
3. Click Payments and Payouts 
4. Click Service Fee
5. Choose Simplified Pricing or Split Fee Pricing 
6. Make sure click SAVE

[Amine198]

in my account the step 3 do not appear at all, there is no "Service Fee" at all.