im planning to co hosting company in kochi is it okay
im planning to co hosting company in kochi is it okay
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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
Thank you. I’m a long time Airbnb host. I’ve listed several properties over the years. I’ve explored other avenues, but with this change, I think it is finally time to list elsewhere. I’ll keep my Airbnb listing. Unfortunately, every change harms the host. The host takes on the risk and suffers the damage from changes. For instance, I own a seasonal propery and I do not rent it during the winter months. Therefore, I do not have a review or booking during that time. As a result, despite my 5 star reviews and income during the other 3 quarters, I lost my Superhost status. I was a Superhost for ten years when I had my other property. I agree, it doesn’t hurt to keep the listing up and my history of reviews. I know the change is going to affect my rental bookings so I need to do something different. I have a neighbor that created their own website and they are completely booked every year. It’s a great way to go. Their place pops up in internet searches for rentals in the area so it’s very effective. They have repeat guests year after year. I think, I’m finally there! But, good advice to keep the Airbnb listing up. I just think it’s not going to get as much bookings with the changes and I will need to find an alternative. To lose Superhost because I can’t rent in the Winter season, then this….it’s just not a great platform for hosts…especially long term hosts with a great track record and experience. Airbnb will start to be dominated by prooerty managers and not owners I fear.
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.
@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.
@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.
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.
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.
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 @Emily352
I think you may have understood the fee structure change to be the opposite way around?
The move by Airbnb is to scrap the split fee system and to use the single fee system, not the other way around.
If you write the following in your listing ...
Some guests have asked why the total price of their reservation is higher than the accommodation price alone. We'd like to clarify that the total shown may include a service fee charged directly by Airbnb.
... that paragraph describes how it used to be under the split fee system. Under the single fee system, guests pay the calendar price (there is no service fee added when they check out) and Airbnb doesn't collect any fee directly from the guest.
Hi @Vanessa2864
I just want to clarify something so people don't misinterpret the situation. Where you talk about possibly adding a service fee explanation to the listing, you mention:
Some hosts have chosen to do this because they started receiving questions about price increases and want to avoid a possible misunderstanding.
There are no actual increases in guest prices on Airbnb due to the fee structure change, which is why many of us keep saying to hosts that it's not necessary to mention anything about the fee structure change in the listing (it would be weird, as there's no increase but for some reason the host is explaining the non-increase).
In your case, I know from previous posts that you'd like to increase your calendar prices by more than what the update tool does, because you're in a specific position as a host in Italy who isn't registered as a professional host. That causes you to be taxed on gross income, which means you'll be worse off after the Airbnb fee structure change when you pay taxes on the higher gross income.
I want to stress that yours is a valid, but very specific Italian income tax position that doesn't affect many of the hosts reading here.
We have a problem in these threads that many hosts think either their Airbnb payouts, and/or their guests' payments, will be significantly negatively impacted by Airbnb's fee structure change. That is objectively and verifiably (with very little effort!) just simply not true.
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.