New fee structure

[Carolyn-And-Stephen0]

This is absolutely a horrible decision on AirBnN’s part. It completely penalizes the host.  We have been hosting for over 10 years and a Superhost for the entire time.  I will be thinking hard about staying on with AirBnB bead on this policy change. It adversely affects the host too much.  Especially on the Income tax and Rooms& Meal Tax

[Shawn420]

I would completely agree! I would have been more amenable to a fee sharing model. Host pays half and guest pay half. The loser with this change is all on the host. Airbnb is trying to mask the blow to the the host by just telling us to charge more. Charging more will make us less competitive in the marketplace and we will get less rentals. Airbnb is banking on hosts just going back to old pricing to generate rentals and then eating it. I am moving to VRBO. I have been a superhost for a very long time. Host need to band together and push back or boycott. 

[Patricia5347]

Agree...and then the HST must be added on for Canadian properties and how do we explain all this to the guests.

Our costs have escalated dramatically yet we are getting gauged everywhere...from Travel sites to Credit Card companies and now AirBnB. They just charged ME for a guest "non ref" cancellation as well. They cater to the guests and WE are providing the real estate. NOT FAIR

[Elaine701]

@Shawn420 

Good luck with the VRBO thing. I did that  too. I learned a lot from that experience.

One recommendation... I'd wait a while before closing your Airbnb listing. What you learn from VRBO will surprise you.

And it takes a few years to develop a good base of reviews and ratings on any platform. So, I wouldn't be too eager to give up your Airbnb history quite yet 

Good luck and happy hosting!

[Shelley159]

@Shawn420 the host used to pay 3% and the guest paid 12% to 16%.

That is no longer an option, it changes to a 15.5% host-only fee.

If you run the tool you will see very little change in guest prices and host payouts. So there's very little impact on competitive pricing.

[Lisa11050]

Pure Greed!!!  I’ll be finding an alternative way to host. 

[Shelley159]

Hi @Lisa11050 

Airbnb's service fee has been restructured, not increased. Can you let us know how you feel you may be negatively impacted, perhaps we can help?

[Lisa11050]

Seriously? The fact that I have to raise my price 18% or more, to earn what I’m currently earning??  And you don’t see that as negatively impacting me?  That’s hilarious.  

[Stacey114]

Here are two simple examples that illustrate the difference between Airbnb's old pricing model (guest service fee) and the newer host-only service fee.

$200/night rental with a $100 cleaning fee

Old Airbnb Fee Structure (Guest Paid Fee)

Nightly Rate: $200
Cleaning Fee: $100
Guest Service Fee (approximately 14%): $42
Guest Paid: $342
Host Received: $300 (less Airbnb's small host fee)

New Airbnb Fee Structure (Host Pays Fee)
To receive the same $300 before Airbnb's deduction, the host must increase the nightly rate.

Nightly Rate Increased to: $237
Cleaning Fee: $100
Airbnb Host Fee (approximately 19% of $337): -$64.03
Host Receives: $272.97
To net the original amount, the host must increase pricing even further because Airbnb is now taking a percentage of both the nightly rate and the cleaning fee.

[Elaine701]

@Stacey114 

I was of the impression that Airbnb had implemented the 15.5% flat fee globally. I wasn't aware that it was 19% in certain jurisdictions. 

That's too bad. Glad we don't have that here. 

[Mike-And-Jane0]

@Stacey114 The above analysis is wrong. You have included VAT in the second part (I assume that is why it's 19% not 15.5%) but not in the first part. Also guests used to be charged 14.2%+VAT not 14%. Finally you have chosen to ignore the 3%+VAT that hosts used to be charged.

But hey - Why would anyone want to look at the changes honestly when they can encourage their fellow hosts to be aggrieved with Airbnb.

[Stacey114]

Bottom line is that the fee is now being charged on the cleaning fee......Ex $350 cleaning fee is an extra $49 that has to be made up somewhere and because you have to increase your fees they are charging a % of the increase.   The increase you have to mark up is being charged a 15.5%  fee so the markup is much more than 15.5% to break even.  

[Elaine701]

$350 cleaning fee?

Was that from the days when no commission was charged on "extras", and the cleaning fee wasn't shown in the sticker price?

...so you could jack up the cleaning fee and make a lower per night price so you appear to be cheaper than the others?

That kind of bait and switch was what Airbnb was founded on wasn't it? Too bad they've veered away from their roots and now screwing hosts in this way. 

I'd suggest moving to VRBO. I think you can still get away with stuff over there. VRBO certainly gets away with a lot of stuff. You might too!

Good luck and happy hosting!

[Stacey114]

That is a direct pass-through for an eight-bed home to the cleaners on Cape Cod!  Cleaning fees have to be a separate fee because the fee for the cleaners is the same if it is a 2-day stay or an 8-day stay.  They do not discount.  With all due respect, I have been nothing but cordial.  Have a pleasant day.  

[Shelley159]

Hi @Stacey114 

Cleaning fees (etc.).have always attracted the service fee, that hasn't changed.

It's best to run the tool to update prices by the correct amount for your region. It automatically updates all extra fees by the correct percentage too.