Airbnb charges

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Airbnb charges

Hi Everyone,

 

I hope you have all had a busy season.

 

I realised I had a problem when I passed a booking recently to a friend nearby and told them what I was charging and what I received from Airbnb.

I was being charged 15% of the price and they were paying 3% ! I queried this with Airbnb who, after many different replies, said it was due to me using a booking agent. I had tried two ( Beyondbnb and Amenitiz ) to try to simplify my bookings but did not like the way they operated and found them overpricing and harder to work than my way, so I stopped their services after about two months and prior to my holiday season ( March to November ).

 

All my payments had a deduction of 15% and I thought this was the norm until alerted by my friend. After my numerous conversations with the support staff at Airbnb and about a month later, they agreed to drop their fee to 3% from September. I asked who had arranged the 15% fee but they couldn't tell me, so I asked why they didn't reduce it when I dispensed with the agent, again no reason given. 

 

I finally asked if they could refund the fees charged when bookings were taken when I was not using an agent again no explanation.

 

I had an enquiry recently and they again put on 15%, when I queried it the replied that the booking enquiry wes dated prior to the new agreement of 3% even though the guest hadn't paid. I have now stopped instant booking and will not accept any guests that I have to pay 15% for.

 

So, guys & gals, check your hosts figures - you could be missing out. Hope this helps someone.

 

Best wishes

 

Paul

 

1 Best Answer
Mike-And-Jane0
Top Contributor
England, United Kingdom

@Paul10000 I am afraid that you have a fundamental misunderstanding of what has gone on here.

There are two fee structures:

The baseline is Host pays 3%+VAT and the guest pays 14.2%+VAT

Simplified pricing means the Host pays 15%+VAT and the guest nothing.

Depending on the rate of VAT (sales tax?) simplified pricing is cheaper for VAT rates under 4% and up to 0.5% more expensive as the VAT rate goes to 24%. So, in truth the cost is similar between the two fee structures AS LONG AS hosts adjust their pricing upwards if they are on simplified pricing given that the guest pays nothing.

Simplified pricing is 'forced' on hosts who are software connected but for others its a free choice and can be switched from their account.

I hope this makes sense.....

View Best Answer in original post

5 Replies 5
Mike-And-Jane0
Top Contributor
England, United Kingdom

@Paul10000 I am afraid that you have a fundamental misunderstanding of what has gone on here.

There are two fee structures:

The baseline is Host pays 3%+VAT and the guest pays 14.2%+VAT

Simplified pricing means the Host pays 15%+VAT and the guest nothing.

Depending on the rate of VAT (sales tax?) simplified pricing is cheaper for VAT rates under 4% and up to 0.5% more expensive as the VAT rate goes to 24%. So, in truth the cost is similar between the two fee structures AS LONG AS hosts adjust their pricing upwards if they are on simplified pricing given that the guest pays nothing.

Simplified pricing is 'forced' on hosts who are software connected but for others its a free choice and can be switched from their account.

I hope this makes sense.....

Hi,

 

Thank you, it now makes sense, but I knew nothing of these different pricing options, ( as I think, talking to other owners. a lot didn't ) otherwise I would have adjusted my pricing.

 

Due to this, I lost quite a lot of revenue - lesson learned ! Even so, it has taken an age to get abb to change the rate.

 

Thank you again for your assistance,

 

Best wishes

 

Paul

Mike-And-Jane0
Top Contributor
England, United Kingdom

@Paul10000 There is still something strange here. Airbnb cannot take 'an age to change the rates'. It doesn't set the rates - You do. They can be set in seconds on the app or the website and apply immediately. The only thing that can delay this is the channel manager you are using (if you use one).

Actually, the option to even change the fee structure was removed for me when I connected the channel manager -hostaway. They claim that it's a tech issue and that the engineers are working on it but I've spoken to 10+ customer service agents and none of them can help me change it.

 

Not sure if this is systemic or not. 

Joelle43
Top Contributor
Cannes, France

Hello @Paul10000 

 

As @Mike-And-Jane0 have rightly pointed out, if you use a Channel Manager then the Airbnb fees are automatically switched onto "simplified pricing".

 

When not using a CM, hosts can decide which option to go for - "split fees" with guests or even "simplified pricing".  Did you make the adjustment on your listing when you stopped using a CM?  If not then this will explain why the 15% Airbnb commission stayed as it was originally set.

 

https://www.airbnb.com/help/article/1857