Let’s break down this specific reservation. All numbers rounded
A guest made one for $2130. Out of that amount $1550 was my portion, $360 in taxes and $220 Airbnb fees. The guest paid in November. She just cancelled her may stay and was offered either a store credit or refund per my cancellation policy which is half. She selected credit. I will get 12.5%, guest got nothing (credit), Airbnb keeps the money. Now, they have had $2130 for 6 months. This contributed to their working capital and earned them interest, approx. $40. They will continue keeping this money until another host needs to be paid, I would assume these people will not travel till next spring so let’s say another $80 for a total of $120. Now, about 10% of all credits are never used. That gives them average of another $210. Not sure if I am paid on my total (cleaning fee plus reservation) or just reservation. Safe to assume reservation only, making it $175 to me. I also do not know what they will do with tax in this case but somehow I have a feeling they will find a way to come out ahead. I will leave it out of my calculations though. Therefore, Airbnb keeps $2130 credit, makes another $310 on the reservation, pays me $175. So they actually come out $135 AHEAD if the guest cancels! Let’s say the guest did not pay that long ago or will travel again soon reducing interest equivalent from $120 to $20. They are still ahead by $35. No wonder everyone is getting an email with a reminder to cancel their May bookings!
