Host-only fee

[Emiel1]

Listings which are on the "host-only fee" structure have this message right beneath the booking form:

The "piggy bank" icon pretends there is a saving here.

Also the booking form displays this line:  Service fee   $0

IMHO this all is misleading to guests, as they still pay a Guest Service Fee, but it is included in the renting price.

Guest may also think listings on the "split-fee" structure (charging them a Guest Service Fee) are more expensive.

But when it comes to "long term stays" (LTS) such listings are even cheaper, as the Guest Service fee  for LTS is significant lower (-4%) then for "short term stays". The 'host-only fee" structure makes no difference on this, as it is same percentage.

About fees:

https://www.airbnb.com/help/article/1857/what-are-airbnb-service-fees

[Elaine701]

@Emiel1 

I think it is a slight savings. Airbnb charges the guest 15% and the host 3%.

I believe they are asking 17% for the host only fee. That's a savings of 1%.

I'm considering doing it. Especially if they're going to put up a flag on the listing that says it's "commission free". Naturally, I'll just raise prices to compensate. The price will be the same for the guest, but "Commission free". 

🥱

[Emiel1]

@Elaine701 

Do not forget Fees are subject to VAT

[Branka-and-Silvia0]

@Emiel1  exactly, here VAT is 25%

[Mike-And-Jane0]

@Elaine701 @Emiel1 

Actually, in the UK fees are

14.2% guest, 3% host each plus VAT

or 

15% host plus VAT (at 20%)

If you do the mathematics then if you charge the guest the same gross amount then the host ends up 0.7% better off. I guess you could charge the guest 0.7% less and make the same money as a host.

The issue in the UK is that if you are close to the VAT threshold then you may end up paying VAT on the whole listing price (not just the commissions).

[Branka-and-Silvia0]

@Mike-And-Jane0 

the same is in Croatia.... except our VAT is 25% on top of the host fee. 

So if I have to pay 15% host fee + 25%VAT = 18,75 %

If I incorporate it into the nightly price then my guests would have to pay more than they are paying now. Of course, we also have a VAT threshold

Low host fee is one of the main reasons I prefer ABB over other OTAs

[Richard322]

I'm in New Zealand and wish to try the host-only fee option, but cannot locate anywhere to choose this. I note somebody said some countries do not offer it. Can anybody help me?

[Emiel1]

@Richard322 

If(!) it is offered , the choice for fee-structure can be made in your account, section "payments/payouts", tab "service fees".

[Richard322]

There is no 'service fee' tab as described, so looks like it's not offered in NZ.

[Shannon856]

Did you ever figure out where to change the service fee?  I’d like to change to host only but can’t find it anywhere! 

[Richard322]

I've just found out that the host-only fee payment option only occurs if you are using a 'channel manager' i.e. a booking agent. I think this is a fundamental flaw in the Airbnb setup because it would be very easy to absorb the service fee of around 15%, thereby reducing the guest payment by that amount. Much easier than playing around with reduced tariffs in order to attract bookings. When the guest puts in a proposed booking, the result appears with a $0 beside the service fee line.