New fee structure

[Carolyn-And-Stephen0]

This is absolutely a horrible decision on AirBnN’s part. It completely penalizes the host.  We have been hosting for over 10 years and a Superhost for the entire time.  I will be thinking hard about staying on with AirBnB bead on this policy change. It adversely affects the host too much.  Especially on the Income tax and Rooms& Meal Tax

[Patricia2526]

Hi @Carolyn-And-Stephen0 

In principle, your economic outcome shouldn’t change if you increase your nightly rate to offset the 15.5% host-only fee. You’re simply moving the Airbnb service fee from the guest side into your accommodation price.

While the simplified pricing model is designed to keep your payout roughly the same, it may not be tax-neutral in every jurisdiction. Hosts should check how their local tax authority defines gross revenue and whether Airbnb’s host service fee is deductible.

This is one area where Airbnb could provide much clearer guidance, especially for hosts in countries with different tax systems.

[Carolyn-And-Stephen0]

Again this is a terrible decision on AirBnB’s part.  All in pricing was already there for people booking.  All you’re doing is negatively impacting hosts.  Member’s that are booking should see the fees that you are charging, in a very short time it will be forgotten and guests will think that Hosts are making more money when in fact we are making less.  

[Elaine701]

@Carolyn-And-Stephen0 

So far, those who have been on the industry standard single fee model have not experienced any downside.

No change in bookings, earnings or guest prices. It's as if nothing has changed, except it's easier to account for and consistent with the whole industry.

Perhaps it might be best to wait to see if it affects you in any way? It hasn't affected others. 

[Shelley159]

If you use the tool to adjust your fees before the deadline, you will receive the same payouts as before @Carolyn-And-Stephen0 

Your guests will also pay very close to the same as before (with some minor variations).

[Snehal1]

I think it's a little early to judge the impact. Let's see a few transactions under the new fee structure and compare the actual payouts, taxes, and booking trends before making a final decision. Real experience will tell us more than assumptions.

[Shelley159]

I agree with you that most hosts will feel better once they see that the payouts are the same @Snehal1 

For the guest prices, once a host has used the tool to change to the single fee, they can already verify for themselves that the guest prices have stayed roughly the same. One must just remember to take screenshots of some prices beforehand, so you can compare them afterwards.

[Shelley159]

Hi @Carolyn-And-Stephen0 

Can you let us know how income taxes are affected in your region?

Income tax in most countries is calculated at the applicable level of taxable income (one can fall into a cheaper or a more expensive tax bracket based on your taxable income). 

The change in the Airbnb service fee structure affects the host's gross income before deductions. As commissions payable ("service fees") are deducted before arriving at the taxable income, there should be no impact on a host's taxable income (no new tax bracket) for income tax purposes.

It's possible that other taxes and levies that are based on gross (not net) income may increase due to the new service fee structure. Is the "Rooms and Meal Tax" in your area based on the host's gross income? In other words, it's calculated on the full amount before deducting commission paid ("service fee") as an expense?