UK Service Fee Change - Existing Bookings

[Ian56903]

Hi,

I am planning on using the automated tool to update nightly rates to take into account the service fee being paid solely by host. 

When I apply the tool it updates all rates from today onwards including rates for existing bookings. 2 questions - 

1) Why are dates before May / Junewhen  the fee change comes in  being auto updated?

2) Will guest with existing booking see any difference or will old fee structure still apply?

Thanks

[Shelley159]

Hi @Ian56903 

To me it sounds like you're using external property management software, and that's why you need to switch to a host-only fee?

The automated tool you're referring to is not on Airbnb, it's likely on the software. If you indicate what brand you're using, some hosts here may be able  to help.

[Ian56903]

Hi Shelley - I’m not using an external tool. This is the tool provided by Airbnb in the app to adjust fees. 

Thanks

[Shelley159]

@Ian56903 let's ask @Helen3 in the UK whether she knows anything about this.

Helen do you perhaps know why a host in the UK, who doesn't use external software, would be required to switch to the host only fee. Is this something that Airbnb is rolling out there?

And also providing something in the app that you can use to update prices accordingly?

I haven't seen something about this in the CC before, but maybe I missed it. 

About your second question so long @Ian56903 , bookings already in place were made according to the terms between the guest, host and Airbnb at the time of booking - they won't be affected by any changes.

[Philippa133]

This is definitely something that is being rolled out in the UK and I have experienced the same issues as Ian. I have a business account and have until the 22 June to update pricing so as far as I can tell, if I don't want any booking prior to this date to pay higher prices, then I will have to wait until nearer the time. Additionally, the tool that they have created to update the pricing automatically is currently only available on the app rather than desktop which makes changing numerous properties more laborious. I would be grateful for anyone's advice that may have already completed the update. 

[Helen3]

All hosts need to comply with Airbnb's directive to switch over to the host only fee by June this year 

Presumed this was global but maybe it's just a UK directive @Shelley159 

@Ian56903 

[Helen3]

The increase the automatic tool calculates is too low and you will lose out @Ian56903  . I would suggest you do it yourself manually . 

[Claire2704]

Hi Helen - thanks for advice.  I have to admit that when I look at the new pricing calculated by the tool and do the calculations it looks like I get slightly more as a payout but that could be a) the vagaries of AirBnB or b) me getting my calculations wrong!.  Either way I might just stick with the tool for the short term and see what the actual payouts are.

I have also been in conversation with an AirBnB Support agent on their chat page.  They have confirmed that any existing future booking will not be impacted by updating to the new rates on the tool.  However they have still not confirmed why the tool updates rates prior to the 22nd June which makes me inclined to wait until 21st June before implementing.  If they respond on this point I will update this conversation. 

For full transparency I will also post the full conversation after it is complete.

[Claire2704]

NB for some reason my last reply was attributed to my wife's account but it still me, Ian56903, responding!

[Claire2704]

Hi - I have had a response on final point from AirBnB support and they confirmed that if you update your rates using the automated tool then the new fee structure will kick in immediately.  Based on this I will be holding off until 21st June before updating using the tool.

[Claire2704]

Full conversation with AirBnB support - bit long but gets to the point eventually!

Claire

09:14

Hi - I was sent multiple e-mails yesterday saying that the fee structure will change in May or June meaning that the host will pay all fees (15.5%) and so I should update my pricing to reflect this.
When I use the automated tool on AirBnB app it updates all nightly costs from today onwards. 2 questions -
- You will these changes impact existing bookings? Will guests see a change to their payment structure?
- Why is the tool updating dates prior to the change over in May / June? Does this mean I will move onto new fee structure immediately? If not, does this mean guests will see inflated rates prior to the change over in May / June?

Thanks for your help on this.

Claire

Please don't just send a link to your video / help page on the new fee structure as this does not answer these queries.

Airbnb Support09:16

Hi Claire,

I just want to ask did you set up your calendar to smart pricing?

09:17

No - we manually price.

Airbnb Support09:22

Yes you need to update your pricing Claire. Here is the link for you to set up your pricing https://www.airbnb.com/resources/hosting-experiences/a/how-to-set-your-pricing-714

Claire

09:24

Hi - can you answer my 2 specific queries please. Will this impact existing bookings and why is it impacting bookings prior to the scheduled change to the fee structure in May or June?

This query is specific to the change to the fee structure that AirBnB is implementing in May / June.

And the automated tool you provide to update existing pricing to take into account the new fee structure.

Airbnb Support09:36

No worries Claire. I will be happy to answer your two questions. . Will this impact existing bookings, and why is it impacting bookings prior to the scheduled change to the fee structure in May or June? -- For the first question Claire, Will this impact existing bookings -- The Answer is No. It was booked prior to the date that the smart pricing has been updated. The reservation that will get affected is the future reservation.

Claire

09:38

Thanks for answering first query. That clarifies. Re second query - why is the tool adjusting pricing for dates prior to the 22nd June switch to new fee structure?

Airbnb Support09:42

You are welcome Claire, and I'm glad to answer your first question. And about your second question why is the tool adjusting pricing for dates prior to the 22nd June switch to new fee structure? Can you clarify it more Claire?

Claire

09:44

When I click through the stages with the tool it takes me to a final page where it shows me what the adjusted prices will be for each night. These adjustments are applied from today onwards, not from 22nd June onwards. Why would this be if new fee structure not being introduced until 22nd June?

Airbnb Support09:49

Thanks for clarifying that Claire. To answer that it will update now for your future reservation and no need to wait for June 22 .

Claire

10:03

Thanks. Still not quite answering my question. So, if I update now, and all rates from tomorrow update, will the new fee structure also be in place from tomorrow or will it not kick in until 22nd June?

Airbnb Support11:05

Hi Claire,

Sorry for the late reply, I just came back from lunch break. i just want to know which question that you are referring to that I did not answer? For the clarification and setting up expectation about Smart Listing, All you need to do is to update it from the link that I was able to send you earlier. This will affect future reservation and no need to wait until June 22 to have it affected.

Claire

11:07

Hi - hope you had a nice lunch. Final question is - so, if I update rates today using tool, and all rates from tomorrow update, will the new fee structure also be in place from tomorrow or will it not kick in until 22nd June?

Airbnb Support11:12

Hi Claire,

To answer your question: Final question is - if I update rates today using tool, and all rates from tomorrow update, will the new fee structure also be in place from tomorrow -- Yes it will affect the future reservation, and you don't need to wait until June 22 because it's already covered from the time being that you updated it from the tool.

Claire

11:13

So the new fee structure will be in immediately from time I make changes for any future bookings?

Airbnb Support11:16

Yes Claire it is for your future reseravtion once you update your smart listing from the tool.

Claire

11:17

Thank you for your patience in clearing this up. Based on this I think I will wait until 21st June until running tool.

[Kathryn332]

Goodness me your support people were dim, and you were VERY patient.

I looked into it too, and as my property is in France, it seemed that the overall fee they will be charging is lowering, not raising. The fees they currently apply are 

20.33% in total, I did the maths. Which is a lot!

I think that knowing that the price we set on our calendar is the price our guests will see (except of course I set it in pounds and they then convert that into euros for all Europeans and I'm sure they win on the exchange rate too!) will actually be easier to price well. But, we will mentally need to deduct 15.5% off what we set, right? And they charge VAT on the cleaning fee too?

Kate

[Shelley159]

@Ian56903 @Claire2704 in the calculation, remember VAT on the Airbnb service fee (if you've been leaving it out, that could be why it looks like you'll get out more).

[Gail1141]

my concern is that the payout using the tool or method suggested will be lower and not the same, VAT has not been taken into account - if you do the sums the payouts are most definitely less than current system and so to get around this all increases will need to be manual anyway!

[Nicholas558]

Hi

Just spoken to Airbnb - in the UK the host guest fee of 15.5% is also subject to them adding 20% Vat to the host guest fee they charge 

Also for simplicity I am looking to add all my cleaning costs so that the Guest will see one all in cost as per the bookings.com site