New Pricing Tool prior to change on 22/6

[Yvonne1089]

 

 

I am having a real issue with this and wonder if anyone else is as well ?

I have tried to explain it to the help centre but got the impression they felt I didn’t understand what they are planning .

i do, but the maths doesn’t add up .

To prove my point, I reduced my nightly rate on a specific night to £100 as per the illustration.

if the tool to increase your fees worked as stated this should mean my new rate would be £115.50  (15.5% ) 

Air B&B would charge £18 on this booking which is 18% 

Therefore the £15 absorbed by the increase and the £3 absorbed by profit bringing me back to £97 from my £100 charge .

However when I put to the test the nightly charge has gone to £118 

and my amount still £97 which effectively means Air B&B charges now 

20% £18+ £3 = £21 reduction to arrive at £97 

Either what we are being told as it new fee 15.5 % is wrong or the tool to recalculate rates is wrong .

Or am I missing something .

 I don’t want to adopt the new rates until I know how the pricing works

slowly going mad .

Please any other owners experiencing same issues ??

Yvonne

[Mike-And-Jane0]

@Yvonne1089 I am not really understanding this BUT the difference you have experienced is not additional profit for Airbnb but rather VAT (ie profit for Rachel from  accounts). Airbnb charges are 15.5%+VAT = 18.6% .

I suspect that the Airbnb tools do not properly account for VAT (or other sales taxes). For most hosts who are under the VAT limit this only applies to the Airbnb service fees and not to the whole price.

My advice is to go with simplified pricing as it will make it easier to do your tax returns. Otherwise you have to find out what Airbnb charged for each reservation and add this to your prices to get to the correct Gross revenue required by HMRC.

[Shelley159]

Hi @Yvonne1089 

I can't test it as I'm not in your region and don't have the tool.

However, the way I understand it, the tool that you're given is meant to increase the price in line with the single fee structure, in such a way that the host still earns the same.

In your example, you would've earned 97 and after you apply the tool, you still earn 97. So it's working correctly?