Can you explain the fee structure of Airbnb

[Shirley629]

Show us how it really breaks down?

[Mike-And-Jane0 · Accepted solution]

@Shirley629 Two options are available for the fee structure:

Host pays 3%+Tax(on the 3%), Guest pays 14.2%+tax

Host pays 15%+tax, Guest pays nothing.

Whilst the second option appears much cheaper actually it is less than one percent more expensive depending on the tax rate.

Does this help?

[Bob297]

@Mike-And-Jane0 

I'm confused
Why is 15% + tax more expensive than (3%+14.2%) plus tax?

[Mike-And-Jane0]

@Bob297 Its because percentages are tricky little beggars.

In the spreadsheet below the guest is willing to pay 117.04 so with simplified pricing the nightly rate is set at 117.04. Where there is a guest fee it is set at 100. As you can see the guest gets 0.4% less money under simplified pricing.

Does this make sense?

		assume 20% VAT
Rate/night	host fee	guest fee	guest pays	host gets
	3.60%	17.04%
100			117.04	96.4
117.04	18.00%	0	117.04	95.97
			Hosts gets	99.6%	of what they did get

[Bob297]

@Mike-And-Jane0 
Thank you

[Carlos5456]

Hi,

I don't understand a thing in this spreadsheet. Can you try more like "for-a-retardedly"? 😉