@Robin4
@Katie
Hi Rob,
Yes, this is another way that AirBnB camouflage the benefit to themselves to the detriment of hosts. The current host service fee of 3% (plus VAT) without "Simplified Pricing" is based on pre guest fee subtotal. I suspect AirBnB's marketing material that states up to 17% more bookings were achieved in some market testing could be due to lower total prices - nothing to do with guest fee being disclosed separately.
AirBnB's 15% commission via "Simplified Pricing" is based on a higher room rate rate - assuming most hosts will increase their rate by some amount. That higher base gives AirBnB a higher base upon which to charge their combined guest fee and host fee earning them higher fees.
Furthermore, long term guests who would normally pay roughly 10% guest booking fee will effectively be paying more for accommodation (which will go to Airbnb - not the host - as AirBnB are still scheduled to grab 15% for the standard host fee for moderate or lower booking condition or 17% fee if the booking condition is strict.
Some weeks ago, we received an email from our channel manager stating AirBnB were discontinuing a certain integration method, effectively forcing hosts to utilise the fully integrated channel manager API connection type which has its own limitations. I suspect this was a precursor to forcing “Simplified” pricing for hosts that use a channel manager.
The only thing that is simplified in this new model is that AirBnB can more easily estimate their forward income as its either 15% or 17% on a higher base rate and it simply increases their income.
The additional host fee percentage for strict booking condition clearly shows that AirBnB force hosts to align with their hosting policy ideals which also includes hiding charges from guests. Hosts do not gain or even break even with this new pricing structure. Hosts will likely also get lower page rankings apart from absorbing higher hosting costs. We have seen previous iterations of AirBnB's hard-handedness when instant booking was introduced years ago and strict booking policy was relaxed and is not considered strict when compared to strict hotel or airline bookings.
Despite pretending they listen, the decision making style at AirBnB hasn't changed over the years. If only top management realise their marketing style (glossy with poor quality veneer) has forced many hosts to multi-channel on platforms that are much more understanding of hosts’ requirements or host their listings on their own web sites.