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]

Thank you for your response. I am aware of the tax differences. I have an issue with Airbnb falsley stating my nightly rate is higher than it is. Taxes and fees are calculated based on a base figure and added. Taxes are not backed into. As others have pointed out, the math forces a higher rate and results in a higher price to the guest with everything else remaining the same. It has always been convention to pay a nightly price with taxes/fees added. It’s an expectation. I do not see how this can be legal without full disclosures and a transparent and complete breakdown of the funds.  I think it is deceptive and I think Airbnb is trying to disguise their fees to the guests. It will simply cause guests to go elsewhere for accommodations. 

[Shelley159]

I'm afraid these 'others' are quite verifiably wrong @LeighAnn2 😃:

As others have pointed out, the math forces a higher rate and results in a higher price to the guest .

Any host can test this for themselves. Take a screenshot in guest view of a sample of guest totals before you run the update tool. Compare with the same totals afterwards. They won't be identical, but virtually the same.

What changes:

- the calendar price the host sees

- the host's gross (not net) earnings

What stays close to the same:

- the host payout 

- the guest total cost 

- what Airbnb earns

- the host's taxes (except where hosts are taxed on gross income)

[Shell1094]

Hi LeighAnn2, I would like to find out more about other platforms, if this is a good option. i think Airbnb is the most used platform, right? Thanks

[Elaine701]

@Shell1094 

There's lots of them. 

I strongly recommend signing up and listing with as many as you can tolerate. It will be a great learning experience.

However I'd suggest waiting to close your Airbnb listing. What you learn will surprise you. 

Plus, it takes a few years to develop reviews and good ratings, which is extremely important in this business. Your Airbnb history is valuable. 

Good luck with that.

[LeighAnn2]

I have seen people successfully set up their own direct booking website. I know a few people who are fully booked. We have a busy summer community and a simple google search shows the direct advertising websites. I’ve noticed they are booked a year in advance. They also post on our local community pages when there are openings. I plan to keep my Airbnb listing, but I think this new fee structure will result in fewer bookings. We also have a local rental agency but they also utilize Airbnb. I may list with them, but only accept direct bookings. Their agency fee is less plus they manage the property if there’s a problem and provide cleaning, which is a great benefit. 

[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.

[Shelley159]

You shouldn't get fewer bookings because of the fee structure change @Sharon2173 

The total price that the guest sees, will stay virtually the same. The two parts of the split fee system are just rolled into one fee now.