Split fee Vs Simplified Pricing

[Yasar12]

Hey everyone,

I'm currently using a PMS and my service fee had been changed to Simplified pricing. After a full year I can see that the service fee deducted by Airbnb is a huge amount. 

Im considering removing the PMS and reverting to Split-fee but had some question I hope other hosts can help me on.

What I can do now, is still keep my PMS but mark up my rates by 15%, but since im in a very competitive market, that wouldnt be ideal.

If I do go for split fee, im not sure if its like what it used to be. Now from what I can tell the nightly rates guests see under the small icon of your property (on the main Airbnb page) shows the nightly rate inclusive of all charges (so the total cost divided by the number of nights). If that is the case, is there any point of switching to split-fee?

Do other hosts like yourselves see this too, or am I mistaken?

What do you use and prefer? 

[Dave-and-Deb0]

Hi @Yasar12,

Yes, Simplified Pricing has been around for quite some time now and it is something that you have to use when you are software-connected either through API or a channel manager like Wheelhouse.  You could remove Wheelhouse and then you should be able to switch back to split fee pricing.  You can read more about Simplified Pricing here: https://www.airbnb.com/e/commissione-semplificata-guida

Yes, you could certainly use your PMS to raise your rates to help counteract this increase in fees from having split fee pricing compared to Simplified Pricing and many experts do this but at the end of the day, I believe most guests look at the quality of the listing and the total price they are going to pay.  

I hope this helps!

[Yasar12]

Thanks @Dave-and-Deb0 for your response. Im trying to figure out what would help me the most. Even if the total price remains the same, what would help me in regards to the Airbnb Algorithm? As far as I can tell, the nightly price shows the same amount, is that the case for you too?

[Dave-and-Deb0]

@Yasar12 

I would think sticking with the simplified pricing could be more effective since it would be more attractive to a guest that they are not paying service fees but as for the algorithm, I am not sure if this impacts it.  .

[Shelley159]

Hi @Yasar12 

One or 2 hosts here have recently reported issues with switching back. You can check account, settings, payments & payouts. See whether it gives you the option to switch back. If I understand correctly, they had trouble finding the option even after disconnecting the software.

[Shelley159]

@Yasar12 

Here's an example 

https://community.withairbnb.com/t5/Support-with-your-bookings/Reverting-service-charges-from-Host-f...

[Shelley159]

@Yasar12 

Perhaps a bug

https://community.withairbnb.com/t5/Help-with-your-business/Host-base-service-fee-and-Split-service-...

[Yasar12]

Thanks, once I decide to go back and the issue arises, I’ll follow this. Thanks very much

[Yasar12]

Hi, thanks for your reply

[Helen3]

i don't think you can change back @Yasar12 

[Elisa]

Hi @Yasar12 😊, 

thank you for asking this in the community! 

Did any of the answers below help you resolve the issue?

If so, it's always a lovely gesture to mark it as the "Top Answer".

It's like a big virtual hug to the member who supported you but also to support other Hosts who may have similar questions in the future. 😊

Warm regards🌻,