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

[LeighAnn2]

Good assessment. I think, Airbnb, doesn’t have good accountants. Their new model will simply drive guests back to hotels. I’ve already noticed that hotels look like better deals compared to Airbnb stays. For me, we have local vacation rental companies that do everything. Or, I can set up my own rental website. Both are better options than this new hassle. As we all know, there is a lot of risk involved with Airbnb and guests are not properly vetted. Plus, hosts are reluctant to leave negative reviews so the hosts need to deal with potential damage and terrible cleaning situations. I am interested to hear if there are better and more transparent platforms out there. 

[Francesco602]

@Elaine701 , I confirm that.

In Italy, as well as in other countries, the taxable amount is the gross accommodation cost, which is inclusive of Airbnb's commissions.

Airbnb's commissions (3%-5% or 15.5% now) are considered "expenses" associates to your activity. 

[Elaine701]

And that completely unfair and unethical tax system is Airbnb's fault because... (?)

[Barbara2519]

Airbnb's answer is to just increase your room rate. This essentially increases Airbnb's income by 15.5% The host earns the same amount or less. This has the greatest impact on the traditional host with a room to rent. My guests are regular working people or retirees with a budget. My fee was $ 49-55 a night. It is now $63. so I've removed the cleaning fee to help my guests and offer discounts. I'm losing money. I think Airbnb is benefiting the corporate "hosts" who cater to guests who don't have a budget. Did the " experiences" pay off?  I can't think it did. My clientele do take out. Companies are always beholden to the investors. A 15.5% income increase without any effort is a good business plan. And then there is the fable of the goose that laid the golden egg. 

[Shelley159]

@Barbara2519 you should increase your fees using the tool to get the same out after the service fee structure change. It will also make sure your guests pay the same.

Please don't decrease your fees, you'll lose out quite significantly.

[Elaine701]

@Barbara2519 

I see where you've gone with this, but your calculations conveniently disregard the 16-19% of combined commissions that Airbnb eliminated in this process, before replacing it with 15.5% flat rate. 

Which one is "increasing" Airbnb income? 

[Gabby26]

Thank you. Agreed. And I feel AirBnB is on the verge of killing their Golden Goose Hosts. Looking for a better, more win-win minded platform. Shame on AirBnB for the lack of clarity, the lack of understanding, and downright greed hurting the very Hosts that their succes was built upon.

[Shelley159]

Has the service fee structure change had a negative impact in your case @Gabby26 ? Can you let us know how?

[Sharon2173]

I rent rooms also. Many rent rooms when they come her and work at the Airforce Base. Or they are passing through to another destination.

I am not a vacation rental. So I will have to raise my rates and pray I get bookings. 

I think it is terrible that airbnb has put the fee on to the host. Now customers will think we are greedy and that we keep that fee when we do not. I think this is so untruthfull to the guests. Now hosts will take on the complaints for service fees. Airbnb comes out smelling like a rose. 

[Elaine701]

@Sharon2173 

Unfortunately, Sharon, there's a lot of confusion about it.

Fortunately though, it doesn't add anything to the price nor adversely affect your payout. And your guests shouldn't see any difference.

For all those who've  been on this single fee model for years now, it hasn't made any difference. 

But if that doesn't suit you, you can always go to craigslist or something. It might be a good learning experience.

However, I wouldn't give up your Airbnb listing quite yet. You will be surprised what you'll learn from this. And it takes some years to establish a good history and ratings on any platform, so you might want to keep your Airbnb listing for now. At least until you discover what your other options entail.

Good luck and happy hosting.

[Gabby26]

AGREED! We are Superhosts also, with 8 listings. Not only Horrible decision and business practice but the WAY they are communicating is just like Phishing scammers do. And the suggested way to "Adjust your pricing" is terribly worded, and unclear. AirBnB is losing contact with their Hosting Community, and this needs to be addressed.

MORE clarity, and security!

I hope that many Hosts speak up about this, and thank you Carolyn-And-tephen0 for starting this thread.  Greed is NOT going to be a good long term solution for ABB.

[Gabby26]

Hana Inn Maui here again : Our position is that AirBnB is deliberately making this confusing, and obtuse. OPEN transparency for the Hosts AND the guests is the only proper way to do business. Anything else approaches hidden fees, and distrust.

[Elaine701]

@Gabby26 

This has been explained in excruciating detail. There is no "increase" in fees.

I've been on single fee for years now. So far, other than simplifying accounting and making it easier to price consistently across platforms  (using the same single fee model), there's been no visible difference. Guest price is the same, earnings are the same. Nobody notices. 

But once more, in simple terms as possible:

Airbnb just eliminated between 16% to 19% of their commissions. 3% from the host, 14-16% from the guest.

The 3% from the host was taken from your payout. The 14-16% was added to your price and taken from the guest. 

Both of these fees are GONE. No more collecting these fees. They're OVER as of September  (or whenever they end in your region).

This represents a 16%-19% lowering of your sticker price. 

But then, Airbnb has replaced those fees with a flat 15.5% commission. That's less than what they just eliminated. It's not an increase, but actually, a slight decrease. 

So, just adjust your prices to compensate. Like everybody does. It's what I did. And so far, nobody noticed. It's had no impact on bookings, prices or earnings. 

However, I strongly recommend signing up with the other platforms. It will be a good learning experience for you.

However, I wouldn't eliminate your Airbnb listings quite yet. What you discover will surprise you. I know. I've been there, done that. 

Good luck and happy hosting. 

[Gabby26]

Thank you. So, in other words with all their resources, they are unable to communicate accurately with hosts. And have clear explainations for the hosting community. Got it. 

[Katerina516]

What I would like to know is what canvassing did Airbnb do to check what the majority of landlords want.  They say  "Many hosts tell us this makes pricing difficult."  They could equally say "Many hosts like the existing way that service fees are applied".  I think Airbnb should answer this question.
The service fee for guests in Greece is 16.7% - 16.9%, not the 15% idealised rate mentioned in the Airbnb blurb, with a 3.6% - 3.7% landlord fee.   
I tried the Airbnb tool to change the advertised rates and it changed a nightly rate of €135 to €161, an increase of 19.25% - this is an increase of 2.5% on the current guest rate of €157.87 (€135 + €22.87).  The net amount the landlord will receives becomes €136.05.   Hardly a neutral pricing tool.
So not only is Airbnb not reaching out to see if all landlords agree with their proposed change, their tool to automatically update the nightly rates is flawed.
Oh, and similar to the comments imade by Vanessa2864, here in Greece we will be taxed on the uplifted new rate without being able to deduct the 15.5% as an expense.  Until now, we were taxed on the advertised rate without being able to deduct the 3.6% as expenses.   So more taxes to pay as well.

Finally, if Airbnb at some future date decide to increase the 15.5% (which they will), we will have to recalculate the rates again.