simplified pricing

simplified pricing

Has anyone noticed that the email, video and other media from airbnb suggests that all you have to do is raise your nightly rate to prepare for the new host payout increase and if you raise it then your payouts stay the same?  Well I fell for their pitch and adjusted nightly rates without realizing that they start taking their 15.5% way ahead of the September 15th deadline.  You can't go backwards either so hosts lose money way faster

2 Replies 2

You're moved to the single fee structure as soon as you run the tool @Paula3251 

 

You're right that it's not reversible, because the split fee structure is being scrapped.

 

You're not losing money - your calendar prices have been increased to absorb the portion of the split fee that the guest used to pay. So you, the guest and Airbnb are all in virtually the same position as before.

 

You can note your host payout from a post-update booking and look for a comparable booking before the update to compare. Do the same for "guest paid" totals.

@Paula3251 

 

Most hosts that are confused by this seem to be unaware that Airbnb was previously charging the guest 14%-16% (depending on region). Plus of course, the 3% they charged hosts.

 

That's up to 19% in commissions that form the price the price the guest sees and pays.

 

But with the simplified fee structure, those fees have been eliminated from your price and replaced with a flat 15.5% fee. 

 

So, if you simply raise your price to match the same as it was before the old fees were eliminated, the guest will see no significant difference in price, and you'll see no significant difference in payout. You may even receive slightly more. 

 

The exception to this is in countries that impose income taxes on the amount the guest pays rather than the amount of net income you receive. This includes Italy, Greece and France. 

 

You are in the US, and to my knowledge, the tax system there taxes you on the net income you receive, not what the guest pays, which means you can deduct not only Airbnb's fees (you never even receive this money) but all of your other operating expenses as well, so you shouldn't suffer any additional tax liabilities from this.

 

Also, I noted that you manage 11 properties. As an experienced host, I would expect that you be quite aware of how this business works, tax implications, and would be well aware of these metrics that are integral to your business. 

 

I suppose it could be easy to miss if you only look at 15.5% vs. 3%. Yet, it's always better to see the whole picture before drawing conclusions.

 

I hope that helps. Good luck with everything. 

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