New fee structure

New fee structure

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

 

101 Replies 101

@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 

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.

 

 

 

 

 

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.

@Vincent236 

 

I'd be a bit cautious about mentioning it in your listing. 

 

As has been explained and proven many times now, it will be very difficult for guests to see any difference from the previous model. It's as if nothing changed at all.

 

So explaining or apologizing for something that makes no difference and guests don't see will only be confusing, don't you think? 

 

I think a better way might be to just carry on as before. It's not like anyone will notice any difference anyway. 

 

Good luck with that. 

There's another interesting consequence of this new "simplified" fee structure. Guests will no longer see an "Airbnb service fee" on their booking breakdown. Not because the fee has disappeared - it hasn't - but because it's now charged entirely to the host.

 

That's why some italian hosts have decided to do something rather unusual: they're now stating directly in their listings and rental agreements that Airbnb keeps 18.91% of the rental price as its commission.

 

It's their way of restoring a bit of transparency and helping guests understand why accommodation suddenly costs more, even though the host isn't making a single extra euro.

@Vanessa2864 @Vincent236 

 

Ok, so when your electricity or telephone internet or water  supplier or laundry service or property taxes  decide to change their fees, will you also inform your guests of this? 

 

Do you ask your local supermarket how much they pay for that loaf of bread you're about to buy? the transport costs and the electric bills of the bakery that makes it?

 

You know, transparency and all. 

 

If so, I'll try to keep an eye out for guests like this. I sense they're likely to be problematic. 

 

Oh, and by the way... If you choose to charge more than you need to match the previous price, and then explain it away to your guests by claiming Airbnb made you do it, then that's not very "transparent" is it? And frankly, I doubt most guests would care. They either are willing to pay the price you set or not.

 

And explaining it to someone who really couldn't care less does sound a bit guilty. 

The Airbnb fee is not simply an operating cost like an electricity bill or laundry expenses. It is the cost of using an intermediary through which the booking is generated, and until recently it was a separate, clearly visible line item in the guest’s checkout summary as the “Airbnb service fee” (under the split-fee model).

 

Today, with the host-only fee model, that same fee hasn’t disappeared - it has simply been built into the accommodation price. The difference is that it is no longer shown to guests as a separate charge.

 

So the question is not: “Do I need to explain every single cost involved in running my business?” Nobody is asking for that. The question is: “Does it make sense to explain why a part of the price that used to be clearly identified is now included under a different line item?”

 

Some hosts have chosen to do this because they started receiving questions about price increases and want to avoid a possible misunderstanding: that the entire increase represents extra income for the host, when in reality part of it is due to a change in how the platform structures its fees.

 

This is not about blaming Airbnb, nor is it about asking guests to care about an host’s accounts. It is simply about providing information on how the final price is made up.

 

Is it true that many guests may not care? Sure. But the fact that some people are not interested does not make the information irrelevant for those who do want to understand.

 

Transparency does not force anyone to look deeper into the details; it simply allows people to understand a change that has taken place and that has affected how the final price is perceived.

@Vanessa2864 

 

Platform commissions are indeed an operating cost in terms of accounting. Ask your accountant about that. 

 

I've yet to meet a guest who knows or cares what I pay Airbnb. They're more interested in where the nearest supermarket is. Or a good seafood restaurant. 

 

Ok, yes, feel free to tell them about the Airbnb commission, if it makes you feel better, but they might think it's a bit odd.

 

"That's nice. How late is the supermarket open?". 

Yet another way to squeeze a little more out of small hosts. Accordind to my accountant, I'll have to increase my prices by 26%. If that's the case, Airbnb will end up making even more money, despite saying these changes are meant to make things easier for hosts. Some host, including those in Milan host community that I regularly exchange ideas with, recommend mentioning this in the listing. It helps reduce questions in the chat and avoids guests assuming that the higher price is the host's decision. Booking price information. Some guests have asked why the total price of their reservation is higher than the accomodation price alone. We'd like to clarify that the total shown may include a service fee charged directly by Airbnb.This fee is set and collected by Airbnb, not by the host. For this reason,the final amount may be higher than the accomodation price itself. If you have any questions about the price breakdown, we're always happy to help explain it.

Hi @Vincent236 

Write down or screenshot some prices in guest view before you run the update tool, then you can compare those same prices afterwards.

You'll see that the prices don't stay 100% identical, but they are very close to the same. The difference (up or down) won't be big enough to need an explanation - if you write one, you may just confuse your guests and give them the impression that there's been some increase that they should worry about.

I agree!  We were thinking of selling our property and this outrageous raise in percentage to hosts has practically made our decision!  

 

The fake thing about raising your nightly or prices to accommodate for this phenomenal host hike is ludicrous because the market remains the same in pricing and won’t tolerate that kind of hike. 

 

We also do a lot of Airbnb travel and I don’t understand why they couldn’t just reduce the renters service fees by 5% and added that to hosts - still wouldn’t be happy but much more liveable for hosts and happier renters. Poor business decision at best. 

 

Hi @Amy2949 

Have you been able to read some of the other posts since you posted this?

Let us know if you're still not convinced that your guests will pay the same after the fee structure change, or if you have something else that worries you about it.

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