simplified pricing

[Paula3251]

Has anyone noticed that the email, video and other media from airbnb suggests that all you have to do is raise your nightly rate to prepare for the new host payout increase and if you raise it then your payouts stay the same?  Well I fell for their pitch and adjusted nightly rates without realizing that they start taking their 15.5% way ahead of the September 15th deadline.  You can't go backwards either so hosts lose money way faster

[Shelley159]

You're moved to the single fee structure as soon as you run the tool @Paula3251 

You're right that it's not reversible, because the split fee structure is being scrapped.

You're not losing money - your calendar prices have been increased to absorb the portion of the split fee that the guest used to pay. So you, the guest and Airbnb are all in virtually the same position as before.

You can note your host payout from a post-update booking and look for a comparable booking before the update to compare. Do the same for "guest paid" totals.

[Elaine701]

@Paula3251 

Most hosts that are confused by this seem to be unaware that Airbnb was previously charging the guest 14%-16% (depending on region). Plus of course, the 3% they charged hosts.

That's up to 19% in commissions that form the price the price the guest sees and pays.

But with the simplified fee structure, those fees have been eliminated from your price and replaced with a flat 15.5% fee. 

So, if you simply raise your price to match the same as it was before the old fees were eliminated, the guest will see no significant difference in price, and you'll see no significant difference in payout. You may even receive slightly more. 

The exception to this is in countries that impose income taxes on the amount the guest pays rather than the amount of net income you receive. This includes Italy, Greece and France. 

You are in the US, and to my knowledge, the tax system there taxes you on the net income you receive, not what the guest pays, which means you can deduct not only Airbnb's fees (you never even receive this money) but all of your other operating expenses as well, so you shouldn't suffer any additional tax liabilities from this.

Also, I noted that you manage 11 properties. As an experienced host, I would expect that you be quite aware of how this business works, tax implications, and would be well aware of these metrics that are integral to your business. 

I suppose it could be easy to miss if you only look at 15.5% vs. 3%. Yet, it's always better to see the whole picture before drawing conclusions.

I hope that helps. Good luck with everything. 

[Paula3251]

My payouts haven’t been the same since I’ve made the switch.  I feel like a fool and Airbnb looks like the hero now because the guests can’t see their fees 

[Shelley159]

Hi @Paula3251 did you run the update tool or did you update prices manually?

If you want to, you can post a screenshot of a booking (line items for host payout and guest paid) from before you ran the tool and after so we can try to see.

Your host payouts should be in line with what they were before. Be sure to compare the same type of booking (i.e. no unique discounts or promotions).

[Meral238]

I totally agree with you. My earning and booking rates are not the same since changes. The problem is that now they included the cleaning fee within their cut of 15.5% and they kept the cleaning fee bands the same as before which is not cutting for long stay guests...you earning shrinking...the longer stay they book the less amount you receive...they need to add at least couple more cleaning fee bands so that we can try not to lose so much money from long stay guests and also attract shorter stay guests...

[Shelley159]

The problem is that now they included the cleaning fee within their cut

The cleaning fee has been subject to the service fee since the launch of Airbnb @Meral238 , as on all other booking platforms.

Otherwise all hosts will charge zero per night and cleaning only.

[Meral238]

I finally found out about this. Don't add any cleaning fee and remove less than 3 nights bookings from your listing! I have asked this to Airbnb customer service, because when you add cleaning fee and allow both short and long stay bookings then if they book a long stay your take out gradually reducing (as the include this one off cleaning fee in the single fee and then take their %15.5, so that your net earning reducing but their commission increasing). You can calculate it for yourself, you will see.

They told me If you would like to receive 40 pound per night then your night rate needs to be 48 pounds (+%18.35). I was asking what about if add cleaning fee. calculate this then? i dont receive 40 pound. Obviously he couldn't calculate and told me the cleaning fee now with this pricing system, it is obselate...you have to charge single fee!

If you remove cleaning fees then you will receive 40 pounds for every night after their fee, but if you add cleaning fee, with long stays your nightly take out after their commission dropping to 30 pounds lol...Cleaning fee that we were adding because of the short stays as nobody would like to host people for 1 or 2 nights from 40 pounds ‌‌‌😆‌‌‌ so once you change your listing to minimum 3 nights then you are fine...

Anyways with this system Airbnd damaging their own system because no one will take short stay people any more. It doesn't worth to get guest, do all preparations for 40 pounds for one night...

Airbnb customer service told me you are right, there is this problem, I will pass your concerns...I told them you are taking the opportunity from me to host short stay people also damaging your own business too...because there will be a lot of people like me who won't be willing to host people with small money for 1 or 2 night if I need to remove the cleaning fee to get my desired nightly rate...he said he will pass this one to the relevant department. I was like if we can't use the cleaning fee, why do you have it there? It is reducing my net earning, if I add cleaning fee...

he couldn't answer my questions, he just told me remove the cleaning fee, the only solution is this and if you don't want to get short stay people with that same rate then limit it with minimum 3 nights..

[Meral238]

Found the answer! Don't add any cleaning fee and remove less than 3 nights bookings from your listing! I have asked this to Airbnb customer service, because when you add cleaning fee and allow both short and long stay bookings then if they book a long stay your take out gradually reducing (as the include this one off cleaning fee in the single fee and then take their %15.5, so that your net earning reducing but their commission increasing. They say customer has to see single fee, no cleaning fee, no pet fee etc separately.  I was like that is fair but why you are taking your commission aftet my cleaning fee 😆 it is effectively recuding my net earning when it supposed to cover my extra expenses for short stay people and do other way around 😆). Anyway, you can calculate it for yourself, you will see, it is gradually reducing. Your tax will get more complicated too.

They told me If you would like to receive 40 pound per night then your night rate needs to be 48 pounds (+%18.35).  I was asking what about if add cleaning fee. calculate this then? i dont receive 40 pound. Obviously he couldn't calculate and told me the cleaning fee now with this pricing system, it is obselate...you have to charge single fee!

If you remove cleaning fees then you will receive 40 pounds for every night after their fee, but if you add cleaning fee, with long stays your nightly take out after their commission dropping to 30 pounds lol...Cleaning fee that we were adding because of the short stays as nobody would like to host people for 1 or 2 nights from 40 pounds ‌‌😆‌‌ so once you change your listing to minimum 3 nights then you are fine...

Anyways with this system Airbnd damaging their own system because no one will take short stay people any more. It doesn't worth to get guest, do all preparations for 40 pounds for one night...

Airbnb customer service told me you are right, there is this problem, I will pass your concerns...I told them you are taking the opportunity from me to host short stay people also damaging your own business too...because there will be a lot of people like me who won't be willing to host people with small money for 1 or 2 night if I need to remove the cleaning fee to get my desired nightly rate...he said he will pass this one to the relevant department. I was like if we can't use the cleaning fee, why do you have it there? It is reducing my net earning, if I add cleaning fee...

he couldn't answer my questions, he just told me remove the cleaning fee, the only solution is this and if you don't want to get short stay people with that same rate then limit it with minimum 3 nights..
It is really frustrating now, I can't get booking any more. Now trying his suggestion, if this doesn't work, I guess I will have to rent my extra room for a permanent lodger.