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

[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.

[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.