WARNING: Do NOT activate Airbnb's Simplified Pricing!

Answered!
Daniel-Rusteen0
Level 10
Medellín, Colombia

WARNING: Do NOT activate Airbnb's Simplified Pricing!

Simplified Pricing is being forced onto some hosts (who use certain types of software) and is optional for others, like me. Yesterday I decided to activate it and try it out. I quickly decided that it's not a good idea. However, I quickly realized there is no selection to turn it off. I called Airbnb support and wasted 10 minutes of my life, as you all know is usual in dealing with anything but the most basic of issues, to be told that it's not possible.

 

When you use Simplified Pricing, your nightly rate increases. This is bad! Even though the total pricing remains the same, Airbnb shows in search and guest's search for the nightly price. Before SP I was around $550 per night. Afterwards, with a 14% increase in prices done automatically by Airbnb, my pricing was around $630. So now any guest searching for $629 and below, I will no longer appear in those results! Very bad! I just lost a huge pool of future potential guests without earning any additional revenue.

 

Airbnb says that hosts saw an increase of bookings by 17% by activating SP. BS. Produce the data @Airbnb . So that's a huge bummer for me. Like a really, really big bummer. I haven't gotten an inquiry since I activated it.

1 Best Answer
Emiel1
Level 10
Leeuwarden, The Netherlands

@Daniel-Rusteen0 

 

The ServiceFfee structure can be choosen in your account:

https://www.airbnb.com/account-settings/payments/service-fee

 

Emiel1_0-1637450607804.png

When choosung "simplified pricing" you need to increase your prices (rate per night) , it is not done automatically.

It makes no difference in the search system, as prices are always shown including all costs, no matter if they are added to or already included in the price.

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15 Replies 15
Agnieszka80
Level 2
Paris, France

I tried this Simplified Pricing here in France - it's horrible. First of all, it increases gross earnings by 15%+VAT, in my case: this 15% guest fee+VAT= 18% TOTAL of additional Gross Earnings!!! And we pay taxes on gross eranings, which amounts to paying more taxes with Simplified Pricing. In addition, for those who are not subject to VAT because to small a business, this risks increasing your taxable turnover and falling into the obligation to pay VAT and HIGHER TAXES!

Not to mention it DIDN'T bring me more bookings.

Fortunately we can easily deactivate it here:

 

The ServiceFee structure

 

https://www.airbnb.com/account-settings/payments/service-fee