Guest service fee

Casie4
Level 1
Prague, Czech Republic

Guest service fee

Hi everyone, 

 

I am a new host living in Prague, Czech Republic and I have noticed that every time a guest books my place they are charged a substantial guest service fee.  Can someone please explain to me how this fee is calculated and why (and how long) this fee has been in place?  I have used Airbnb as a traveling guest for many years and I have never seen this fee on my side before. I think as a guest I would be a little put off having to pay an additional 10% to 20% fee on top of the nightly charge.  So now that I am a host, I am also concerned about this fee for my guests. Does anyone have any thoughts or information about this new fee they could share with me? 

 

Thank you! 

6 Replies 6
Sandra856
Level 10
Copenhagen, Denmark

Hi @Casie4 🙂

There has always been a fee (at least as long as I remember) Maybe you didn't notice when you were a guest? I have never had any complaints about it the 5 years I have been a host.

I'm sure you can find information about guest fees searching this community.

Best, Sandra 

Sandra856
Level 10
Copenhagen, Denmark
Sarah977
Level 10
Sayulita, Mexico

@Casie4  There has always been a guest fee. The percentage varies according to some algorithm which none of us are privy to. The fee has been steadily increasing over the years- used to be about 10-12%, but now seems to go as high as 20%, which does seem onerous. Some other platforms build the fee into the listed price, but that doesn't mean it's any cheaper- those hosts charge a higher price to cover the guest fees they are paying. 

This is nonsense!

 

I want to know what Guest service Fee is for (what is the money used for). It didn't appear on initial bookings and suddenly it has appeared. I have noticed it is only charged on some bookings and want to know why.

@Cisco1456  What do you mean, what is the money for? The platform requires money in order to function, as every business does. Service fees are used to run the platform. 

 

Service fees are charged on all bookings. There are two fee structures- the split fee option means hosts pay 3% and guests pay anywhere from about 14.5% to 20% (how Airbnb determines that percentage is not something anyone really knows exactly but them). 

 

The "simplified" fee structure means the host pays all the service fees, about 15%. So the  guest doesn't see a separate service fee charged to them. 

But if the host is paying all the fees, the host would have to increase their nightly rate to cover the increased service fee they are paying.

 

So in the end, the guest is actually paying more or less the same amount in total- it's just a psychological marketing ploy, like stores putting on a price tag of $14.99 instead of $15. It's only a penny difference, but marketers have determined that the $14 mentallly registers instead of that it's actually $15.

There has to be a criteria for charging it and what the money is used for. Also why are we providing guest service and being charged for it as well.