Room price vs cleaning fee= Occ rate

[Adrian3919]

do you think it’s better to reduce the cleaning fee and increase the room price fee to increase occupancy or should it be the reverse? What do you think is the best strategy to increase occupancy rate

[Alicia753]

Hi @Adrian3919,

Reducing or even eliminating the cleaning fee while slightly increasing the nightly rate could indeed boost occupancy. Guests often find high cleaning fees off-putting, especially for shorter stays. By incorporating that cost into the nightly rate, the pricing feels more transparent and appealing. Listings without additional fees often stand out more in search results, especially as Airbnb tends to favor total price over just the nightly rate. This approach can be particularly beneficial if you cater to short-term or one-night travelers, making the cost per night feel more reasonable.

Guests also appreciate a consistent pricing model without surprises at checkout, which makes it easier for them to compare properties and decide on yours. A single nightly rate without extra fees can simplify budgeting and enhance perceived value. Testing this approach for a few months could give you a clear sense of its impact on occupancy, helping you make data-informed adjustments. In competitive markets, rolled-in fees tend to draw more bookings, and this strategy could be a great fit depending on your target guest profile and the surrounding competition.

I hope this helps.

All the best,

Upfish Management

[Elisa]

Hi @Adrian3919 😊, 

Thank you for bringing up this topic in the community!

Have you come up with any ideas about what to do?

I’ll mention a few experienced hosts who will know how to suggest solutions to you: @Guy991, @Frances3408, @Robin4 and @Helen3.
Thank you in advance, everyone!

Warm regards 🌻,

[Frances3408]

@Adrian3919. As Airbnb has moved to a more transparent pricing (at least here in OZ) there is no longer a benefit to charging a modest room rate then a large cleaning fee ie I notice one of your listings for a 2 bed has a cleaning fee that is the equivalent of a nights stay.

I have both no cleaning fee and a cleaning fee listings. I do the no cleaning fee for a simple studio because its at a price point that competes with the local motel, although I charge more as it has an exclusive outdoor area, allows pets and I do a better clean.

I charge a cleaning fee for houses because it usually comes with more bedrooms and a yard, is booked for more days on average so the cleaning fee spreads out better.

The studio is far busier, but that is based more on current cost of living issues (its cheaper) and wider choice in the higher price points. 

And re your cleaners I always try and check after they've been through as invariably they can miss things. I also do the restock. But do what works for you.

I am interested in why you are relisting one at the end of Nov and that it has Airbnb's blessing?. Perhaps you can do a separate posting of this in Host Circle when you have time, to help us hosts.

[Elisa]

Hi @Adrian3919 😊,

Have you found a solution?
Our hosts shared great advice with you. Did you get a chance to review it?

I look forward to hearing your thoughts!

Warm regards 🌻,