Are airbnb fees too high?

[Helen65]

Airbnb says that it's service fees for guests are between 6-12% and lower if the booking is bigger. I recently had a booking for a week which cost £252 and noticed that the service fee on top of this is £38. That's just over 15%. I am wondering if I am missing something or are airbnb service fees for guests creeping up? 

[Ash6]

You are correct. Airbnb states 'the higher the subtotal, the lower the percentage, so you can save when booking large reservations' but that's not strictly true, it's the opposite! The lower the subtotal, the lower the service fee. And the service fee is higher with a higher subtotal. Airbnb states the service fee covers things like 'if a host cancels', '24 hour telephone/email support' 'the running of the Airbnb platform'. But if you cancel a reservation in any case (unless it's for exceptional circumstances) the Airbnb service fee is non refundable. Hosts only pay a very small 3% fee when the guest checks out and they are covered by the £600,000 host guarantee. 

[Finn3]

I have noticed the same thing. Large reservations get slammed with a high fee. It makes my job as a host harder because there is disincentive for my guests to stay longer. That means more cleaning for me. Another thing I noticed is that when I designing a special the service fee is one thing (ex. $8) then after I have make the offer, it shows that a higher amount will be charged ($11). WTF?

[Kayyor0]

Hi

saw your post about service fees.. 

im getting  increasingly concerned that im paying away too much money in fees.. the fees are like 10-14% now..   i know the guests pays this but the fact they are willing to pay it, means the market for my property is higher and i feel i should e able to earn more of that money.. do you know of any platforms that allow the house booking transaction to take place.. but allows me to earn some of that 10-14% and the guests to pay a little less of that 10-14%.. this is especially the car with repeat bookers who now account for 25% of our bookings..?

would love to hear your thoughts on it.. 

i kind of need an airbnFREE!

[Ute42]

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@Kayyor0 

All the international STR platforms have service fees in the range as airbnb has them.

Platforms have considerable expenses and they need to be payed for.

There is nothing wrong with the service fees as they are.

[Kayyor0]

hi Ute42 having worked previously for homeaway and i know the margins are huge!

clearly the market price for all our properties is 14% higher... i feel like client/ host/platform could share in that while all still making money/saving money  

i think i might have to build a platform!

[Ute42]

@Kayyor0    

You've worked for HomeAway and the margins are huge? Have You read the quarterly earning-reports from Expedia showing dedicated EBITDA – figures for HomeAway?

Do You know how much profit airbnb makes respectively not makes?

And now You think You might have to build a platform. How much money do You think You need to do so – 1 Billion USD – 5 Billion USD?

Good luck.

[Kayyor0]

Ute 42 relax ... this is not a boxing ring .. Having been an investment banker for 15 years and then moved into the tech space I know all about raising money for platforms like this .. clearly you are happy with the fees  that’s fine ... the idea is to stimulate debate  and to see wether other people feel the fees are too high 

good luck and thanks for your feedback 

[Cass6]

 Yes, I have been a host for about five years and I’m pretty sure the fees have gone up from 6% on my cottage to 14% now. That is ridiculous. Why is Airbnb being so greedy? This needs to change. Charge a reasonable amount, not some crazy greedy fee! Who are these fat cats trying to Get rich off us hard-working hosts? It’s not fair.

[Rubén27]

I am both host and guest and I can say the fees are becoming outrageously high. Around 20% overall the last time.

Other platforms are coming with lower fees and will eventually take over.

The Airbnb platform just looks to maximize ITS benefits, not the hosts'.