Guest service fees

Joan48
Level 2
Witless Bay, Canada

Guest service fees

The extreme high charges by Airbnb which includes the 3% charged to hosts  plus the user fee charged to guests adds up to a HUGE Airbnb take (almost $90 extra for me) that ultimately comes from those guests wanting to use an Airbnb stay. 

I thought the 3% cut by Airbnb was to cover potential guests using the site? So why the enormous add on seeking another 13%? 

 

How can Airbnb justify such a huge combined take? It is having an impact on bookings and potential profits for hosting?  When I subtract all my costs to maintain my Superhost services, costs of maintenance n supplies, my profits are so small, to the point of only two sad choices; either charge more and end up with little bookings all year or stop hosting altogether 😞 

 

Are other hosts having a similar issue?

Why couldn’t Airbnb simply increase the 3% fee to 6% to include a smaller but fair user fee to both hosts and potential guests? 

7 Replies 7
Lorna170
Level 10
Swannanoa, NC

@Joan48   The 3% fee is to pay for the credit card fee.  It is the normal amount charged by merchants for credit card use.  

the 13% fee is what Airbnb charges the guest for using the website, and ostensibly for the insurance.


 The guest pays the 13% and the taxes, and you receive the amount of your nightly rate, less the 3%.

Thx Lorna, 

I do understand the credit card charges. And it makes sense that Airbnb would charge a small user fee for use of the app, like 1-3 percent.
But with the hundreds of thousands of Airbnb hosts around the world, used every night stay, the insurance premiums can’t be 10-11 percent of all guests funds coming in? If it is then the insurance company is making extreme profits on the backs of Airbnb n it’s hosts. 
Airbnb should be transparent about these outrageous costs by posting to hosts. 

Mike-And-Jane0
Level 10
England, United Kingdom

@Joan48 other platforms charge a lot more than Airbnb. I guess the platform and publicity cost big money.

Debra300
Level 10
Gros Islet, Saint Lucia

@Joan48,

 

Both Booking and Expedia charge 15% if the host collects the payment, and an additional 5% if they collect payment on behalf of the host.  They both remit payment in the form of a virtual card that requires the host to pay a credit card processing fee (typically about 3%) to access the funds.  That means that a host on these platforms must raise their rates to cover the 15-23% fees.  Vrbo charges a host fee of 5% plus 3% for payment processing, and guests are charged between 6% and 15%.  You can maintain your own website, and will have to divide the cost of the site hosting by the total amount of reservations for a specific period to determine that overhead, and ad the credit card processing, because it will still be about 3% (e.g., Square or Stripe).

Kia272
Level 10
Takoma Park, MD

@Joan48  I truly don't understand why this is such a struggle for you. It's called capitalism, and AirBnB is making a profit. They can charge whatever they want. 

 

If your profit margin is so small, then perhaps your business model is not sustainable. 

 

You seem to feel victimized in some way, when in fact, it's your choice to host and to use AirBnB. I just don't get where you're coming from. 

Joan48
Level 2
Witless Bay, Canada

Yes, this is business and it’s obvious Airbnb can charge what they want. And no doubt any host must decide to try to alter their business model to absorb the 17% (what I pay) or get out of hosting. 

Airbnb should however consider finding a balance that helps Superhost like me and others, who have noted on the community page that’s it’s affecting their business, by setting a combined limit of 15%. It makes good business sense for Airbnb and helps those who host and who Airbnb makes millions off. 

Helen3
Level 10
Bristol, United Kingdom

Sorry I can't agree Airbnb has one of the lowest commissions yet has the best most globally known platforms and invest heavily in marketing.

 

If you feel their fees are too high have you tried marketing your listings directly .

 

if so how much does it cost you to market your direct bookings to get the same level of booking as you get my Airbnb in terms of ad spend and your time @Joan48