New host single fee.

[Petrona2]

Hi all, is any host happy with the new single fee. I am struggling to comprehend it. If you set too high high you may not be booked, set too low and loose a big chunk in 15.5 deduction. So I am thinking of going back to split fee. Let me know what your thoughts are.

[Richard3335]

Actually, as the new 15.5% service fee includes service fees paybale by the Host to AirBnb, this raises the question whether an allowance for GST on the host service fee is included or not (GST is 10% here in Australia).

I assume that the 15.5% service fee includes all fees payable charged by AirBnb to the Host, and so this must also include GST aplicable to the service fee. Hence the grossed-up price I set as the new adjust price must include:

1. My base nightly rental cost
2. An allowance for cleaning costs
3. An allowance for linen costs
4. Allowances for all other direct costs
5. Allowance for the 15.5% service fee
6. Allowance for the GST on the service fee (10% of 15.5% = an extra 1.55%)

Gee, if I truly want to provide pricing parity between the old and new pricing methods, this is getting very messy very quickly.

I will also need to cease offering discounts due to the complexities I outlined above. AirBnb's loss, not mine as other AirBnb hosts will realise that discounts will be come a dog's breakfast and potentially do as I am proposing.

[Shelley159]

Hi @Richard3335 

I agree with your calculations, but you don't have to worry that there's any discount that you can set on Airbnb that will reduce your extra fees (such as cleaning). The discounts only affect the nightly rate.

[Richard3335]

Hi @Shelley159 

It would be good if that were the case, to continue to set cleaning costs (as a whole-of-booking cost) independently of the nightly rate. AirBnb should make this crystal clear via a documented worked, detailed example that addresses all questions being raised here.

But norte that AirBnb have stated that the service fee of 15.5% will now be applied to all other fees like cleaning, pet fees, extra guest fee etc. So I ssume a Host will now need to add 18.34% to the cleaning fee in order to receive what their cleaner charges them?

In effect this increases the overall booking cost for Guests, making AirBnb Hosts look more expensive for same rental offered via another platform. AirBnb being less competitive is not great for it's Hosts.

Thoughts?

Thanks Richard

[Timothy794]

I understand your concern about the new single fee, especially with the 15.5% deduction. I've been using the single fee for a while now and it has simplified things for me. Just like using an ** to track expenses, it's about finding a system that works for you. Perhaps we can discuss ways to adjust pricing to minimize losses.

**[Link removed in line with the Community Center Guidelines]

[Richard3335]

Like most things, its all about providing poeple with sufficient information about changes being made and how new approaches will work. Unfortunately, there are so many pending questions about how this new service fee will work; and its not the Hosts who should be providing the answers to these questions, its the platform who controls the processes, the permitted rules, the timing of the changes...and basically everything else.

[Gentry10]

I actually wish AirBNB would go ahead and include taxes into the on sight pricing strategy they are going with.  Would help me out a lot if you could see the cheaper taxes in my area versus other STRs around me in slightly different zip codes/local tax zones.