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

[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.  

[Shelley159]

Yes @Lisa11050 , the fact that calendar prices go up isn't negative, as guests still pay the same and you still get the same host payout. The service fee collection is shifting.

I tried to explain how it works in this post

https://community.withairbnb.com/t5/Host-circle/Service-Fee-Structure-Change/td-p/2273474

[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.

[B162]

My Host dashboard advertised an “action required by 15 September” deadline. I clicked Airbnb’s option to calculate the price change, which immediately changed my pricing for dates before 15 September.

As I understood 15 September to be the effective date, I manually restored my original prices for the weeks leading up to it. An August reservation was then made, but Airbnb applied the 15.5% host-only fee. This has effectively resulted in almost two nights’ accommodation being provided at no return to me.

Airbnb has since said the single-fee migration was effective from 7 July and that notification emails were sent on 9 July. I did not receive those emails, and Airbnb has not provided copies, recipient details, or delivery evidence. No clear warning was shown that clicking the calculation option would activate the new fee immediately, and there was no undo or back option.

Has anyone else manually overridden pricing before 15 September because they believed the new fee would not apply until that date?

[LaVerne29]

The same thing happened to me.  So now, my summer months, I look as if I am the highest priced place for my size in my area.  I clicked it thinking it would not go into affect until the cut off date September 15.  AND I have been unsuccessful at changing it. The only way to get my price down is to change the amount I earn, which defeats the entire purpose of me hosting.  UGH!

[Shelley159]

Hi @LaVerne29 

Please see my reply above. If you want to get the same payout it's important that you don't lower any prices.

The reason you want to lower them, is because you think guests are seeing a higher price, but they're not.

The large guest portion of the service fee has fallen away. Guests see virtually the same price as before. Check it in guest view.

[Shelley159]

Running the tool means you choose to change from the split to the single fee at that moment @B162 

Everyone is changed to it on 15 September (October in the EU), whether they're ready or not. Those who didn't update prices will lose money.

If you run the tool now, don't lower any prices. You're on the right fee structure now. Guests pay almost the same as before and host payouts are the same.

As you've proven, if you lower any prices manually, host payouts and guest payment are no longer in line with what they were before you changed the fee structure.