Airbnb sent me an email saying my account was elgible for early pay. Basically this new feature allows me to get paid 48 hours after a guest books, instead of waiting a day after they check in. It says each payment will have an Host Early Pay fee, but doesn't tell me how much the fee is. Does anyone know?
When I called about the Host Early Pay Fee, I was told that it only applied to new bookings. However, when we decided to try it, it did pay us for an already-scheduled booking.
Funny, I just posted the same question. Thanks for finding out the answer. There is another question about this. What happens if the guest cancels the reservation after the booking fee has been paid out? Does Airbnb take the money out of your account or do they deduct it from another payout?
@Kalin And Marquis , who said that, and when? I wouldn't so easily trust what Airbnb representatives tell us upon an inqiry. Often enough, as things change all the time, they haven't caught up with the newest changes and give out wrong/outdated info.
I seem to have read recently somewhere (can't remember though where, thus can't make a link) that Airbnb is not deferring refunds and such anymore to take it out of our next payment, but that they now take it out of our accounts right away. That makes total sense from a business viewpoint: like in this scenario, the host would be sitting on some $$$ that are actually not his to keep and Airbnb would let him keep it for a while, like a free loan actually, until the host's next reservation money comes in? host could never have a next reservation, could cancel his account, could disappear..... so the retaking of the money right away only makes sense.
This is correct @Annette
Some hosts have to supply their credit card number and they charge the host for the refund instead of taking it from a future trip as there was some scamming issues. I have not seen this lately but was dealong with hosts with this issue.
I think that the fee is a huge a scam. Airbnb already collects the money from the guests. They earn interest income on that money. They have no additional costs by making the pay out sooner.
Airbnb would actually be losing a huge amount of interest by paying out funds early. I'm surprised they would offer it. It doesn't seem like the percentage charged would come close to the interest they'd be losing.
My point exactly..... Why should they be making money with other people's funds. Some if my guests book 1 year in advance.
Hotels don't charge the customer until they actually use the service. Thus practice is a negative for some potential guests.
When I have booked a hotel they have wanted paying then and there.
@Jude, if they charge 3% for a 90 days earlier payout, that's 12 % annual interest rate, way over most market rates. If it's a 14 days early payout, even at 1 %, that would be over a payday lender's rate. At 3% for 2 weeks, you can borrow from the mob too. - It's a feature often asked for by hosts, but it's only interesting if you get bookings long term in advance, at high price and you do not get credit from your bank.
If they are charging an additional 3% for early pay on top of the normal 3%, they're getting 6% from the host. If Airbnb is losing a few days/weeks interest on the funds, it would not amount to even 1/4 or 1/2 of 1%. It's a good economic proposition for them.
Thank you for answering my question about how much the fee is. For the person asking for a link, I think you have to be invited to join as my link has my userid details embedded in it.
The fact that this only applies to booking between 90 days and 14 days and not for long term bookings will stop me from signing up as most of my year is either booked up by long term bookings or more than 3 months in advance. It is for these bookings that I would appreciate being paid at the time of booking. And I do not see why I need to pay Airbnb even 1% for the privilege of having my booking fee when the guest books. I shall wait until they see sense and extend the terms and remove the cost.
Hmm, well my average ia a month out maybe less, but 1% for a month, that would be a very nice return. I would imagine whoever thought this up will be getting a nice bonus.
You do realise that it's probably costing Airbnb keep fees on deposit with interest rates at an all time low, so some genius has not only thought of a way turning a deficit into a surplus by charging the unsuspecting Host for something they should automatically get for nothing. Regards
Actually this applies not just to new bookings, but old as well.
I just activated mine today, and i just got an email with over $4,500 being transfered into my account, so i logged in here to check my account, and it's there, so not some scam email. And i only got one booking today, for Sept check in.
So that means the amount in process right now is for old bookings , not new.
Another thing to note though, i realized in the email that there were small amounts deducted, that is each booking seems to be charged that 3%, not a lump sum.
As in, if they were transfering say $4,000, i thought they would simply take 3% from that amount, but that's not the case, they take an average of $8 from each future booking that there are paying me early for, so when you add all that $8- $15 together, Airbnb just made a killing.
Some of those charges went as high as $18. Once this transfer is done, i will probably shut down early pay.