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

[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.

[LeighAnn2]

I agree. Terrible decision. 

[B162]

Who feels bullied?  I certainly do! 

other than a banner on your host dashboard no other information could be located. I clicked the link and clicked the second, automatically I had new pricing.  I panicked as I believed the date 15 September was the commencement of single fee migration.  I went into my calendar and reverted back to normal pricing until 15 September. NEXT I get a 10 day booking with 15.5% fee, equivalent to approx 2 nights free for the guest.

Airbnb could not show me and written communication the migration is effective immediately. A wasted frustrating morning of dancing around specific facts.  They are so loose it’s ridiculous. 

I’m Ready to move away from Airbnb forever, it’s a complete and utter disgrace how they treat hosts regard this particular issue.

BEWARE… I’d love to hear others who’ve experienced the same

[Elaine701]

@B162 

There's no need for panic. If you did it correctly, there should be no tangible difference in the price the guest sees, nor any difference in your payout. 

Some hosts are confused because they didn't realize that Airbnb was previously adding 14-15% to your price and charging guests  for it. 

Now, they've eliminated that 15% and the 3% they were charging hosts. 18% off your sticker price. 

But they've replaced that with a more standard flat fee of 15.5%. so it's actually a slight decrease. And more like the rest of the industry. 

So again, if your calendar price was properly changed to compensate, everything should look the same and nobody will notice. And you can always tweak your price to adjust further if you want. 

I hope that helps. Good luck and happy hosting. 

[Shelley159]

You did the right thing by changing to the single fee when prompted @B162 

What went wrong, was you forgot about the guest portion of the service fee that had fallen away, and manually changed some prices as if it was still there.

Just undo the manual changes that you made before any more bookings come through.

[LeighAnn2]

Same. Please let me know if you find a good alternative. I have a feeling this change is a huge tech opportunity for a new startup. Platforms come and go. 

[Elaine701]

@LeighAnn2 

Oh there's lots of alternatives. Booking.com, Expedia (VRBO, etc), Novasol, and literally hundreds of small more obscure players.

Each has pluses and minuses, just like Airbnb. But perhaps the one thing Airbnb has over all the others is that they're the largest and most well known globally, and if you're listed on Airbnb, you are exposed to a truly global audience. And that results in bookings. They are by far the most productive platform in terms of bookings. 

But all of them require work. All have their irritations and stupidity. None of them are easy.

And in the final assessment, you'll find that all of them are equally if not more expensive than Airbnb, after taking in all the fees and hidden charges, and all the bait and switch stuff. 

Nonetheless, as a long term host that's been with all the majors, I always recommend that hosts sign up with as many other platforms as they can tolerate. This way you learn how the business actually works and where the land mines are. 

Then you'll be able to assess what works for you and doesn't. 

I'd only caution about closing your Airbnb listing. It takes a few years to establish a review history and good ratings, which is extremely important in this business. But you'll also be surprised at what you learn by having comparison to other platforms (and their drawbacks). You shouldn't be too quick to give up your Airbnb history. It's valuable. 

Anyway, good luck and happy hosting. 

[Mary-Ella0]

I thought this new fee change only affects folks using a separate reservation platform to book? 
I read through the announcement and it doesn’t appear to affect people that have one property/their own home. The rate stays the same at 3% if you fall into that category. I did not accept the change so I believe I will not be affected.  

[Greystone0]

@Mary-Ella0  - for US based listings the date for this change for ALL remaining listings is Sept 15. Previously, those on a PMS were already changed to this method (at least that is my understanding).

We are just one owner/one listing and will be on this new model starting Sept 15 whether or not we update our pricing or agree.  

I don't see a listing with your profile so unsure where your listing location is, but the dates are different for other locations, Europe seems to have Oct 15, for example.

[Mary-Ella0]

@Greystone0 I am in Boston’s south end neighborhood. 
I will give them a call and ask specifically because I really thought that people in my category were not included with this fee change 

[Shelley159]

The entire split fee structure is being scrapped by Airbnb @Mary-Ella0 

All hosts have to change to the single fee structure. You can take some time to make sure you're comfortable with it, but don't put it off indefinitely. There's no downside to accepting the change by running the update tool early - your host payouts and total guest prices will be very close to what they were before. However, if you don't update your prices by 15 September using the tool, your listing will become significantly underpriced - you'll be switched to the single fee without having updated your calendar prices to absorb the new fee structure.

[Vincent236]

I agree100%!….as for I will inform my future guests in my listing so that they could clearly understand the structure of my pricing and why it would increase so much.