Option to "Choose how to include the Airbnb service fee in your price"

[Alexander65]

Any pros and cons of using one or the other option? I like the idea of the first option especially since it reduces the overall fee (host 3% and guest 16%) but the issue is that my price won't be competitive in the search results compared to hosts who select the second option where the fees are added at the end. Effectively the listing would be penalised in search results for looking more expensive.

[Mike-And-Jane0]

@Alexander65 The biggest issue for me with respect to putting the service fee on the host is that the guest has no skin in the game with respect to cancelling. If you go down this route I suggest you need a strict cancellation policy as a minimum.

[Alexander65]

Someone pointed me to this great blog post which compares both fee structures in detail. I highly recommend everyone read it. In short the new fee structure is much better in every way. There's no downside. If anyone sees any please pipe in!

https://www.beyondbnb.io/post/airbnb-s-new-fee-structure

[Ann72]

Thanks for the link, @Alexander65.  Having read it, I will definitely move to the new fee structure when I get the chance.  It hasn't shown up on my dashboard yet, though.

[Alexander65]

I think it's only avaiable if you have a professional / business host account.

[Ann72]

@Alexander65  I do have that, but at this point it's only available if you have a channel manager connected to your account.

[Alexander65]

@Ann72Strange - I don't have a channel manager but I still have the option.

[Ann72]

@Alexander65  That is strange!  I would be annoyed if there were still time to opt for the 14% instead of the 15%, but it looks like that deadline has passed, so I'll just get the option when it comes.

[Elisabeth40]

I am hosting for 6 years now. may I ask you, what is a professional business host account? Did I missed out something? What would be the not professional business account?!

[Alexander65]

@Elisabeth40it means that your account is attached to a company rather than an individual and you get tax documentation accordingly if I remember correctly.

[Melodie-And-John0]

Wow @Alexander65 , thats a pretty big deal actually.   I had noticed that a competitors listing didn't list the separate service fee and wondered what was up with that.    Right now, Im paying 3% and the guest is paying about 15% total 18%, the option of paying a straight 14% seems like a no brainer but there must be a catch.   Do they still honor our cancellations the same way?  Ive been liberal (in policy!) for the entire time, if a guest cancels 2 days before, do I still owe Airbnb the 14% or do they eat it?   JR

[John5097]

@Alexander65 @Mike-And-Jane0 @Melodie-And-John0 

For Flexible guest get a full refund including service fees if they cancel 24 hours before check in. For Moderate full refund including service fees if they cancel 5 days before.

https://www.airbnb.com/home/cancellation_policies#flexible 

I changed mine to Moderate yesterday. Guest are starting to cancel 1-2 days in advance and get full refund if its overcast. 

The article @Alexander65  shared also claimed, "You may be wondering how it affects the ranking on Airbnb, or if your prices will be displayed as more under the new fee structure but the answer is no." 

[Alexander65]

I've always had a super strict cancellation policy. I rent out a 4 bed house with pool and each rental is around $1500 so I can't give guests the luxury of cancelling since there's absolutely no chance I will get a last minute booking.

[John5097]

@Alexander65 

Good to know! I posted the screen shot of the flexable as it recently changed and other host posting here may have missed it, as it doesn't corrispond to some of the other post concerns. Cancelation policy has changed quite a bit in my first year.  Was hoping it might help someone. 

There is quite a bit of info not addressed here so far so will leave it to future post to fill in the blanks. 🙂 

[Nathalie-Et-Gilles0]

@Alexander65 

Depending on your tax system, if you have to declare the gross income to the tax administration, on one hand you can pay taxes on rental income + 3% and one there other hand, you pay taxes on rental income + 16%.

It means that you pay more taxes and you are obliged to increase your price to earn the same net income.

It is neutral if your tax declaration is based on actual accounting and a balance sheet because the 16% fees is deducted from the gross income.