Host Fess

[Paula1720]

My Boss purchased a cottage and is considering signing up as a Host.  I see that Airbnb takes 3% commission for each booking.  It also states that there are service fess ranging from 6% to 12%. How are those fees determined?

[Emiel1]

@Paula1720 

The 3% ia the host fee, it s deducted from your payout.

The guest service fee is charged to the guest, it is not 6 to 12%, but in the range of 12% to 16%.

The low percentage is charged on long term stays (28 nights and longer), the high percentage on short term stays 

Fees are increased by VAT (if applicable)

https://www.airbnb.com/help/article/1857/what-are-airbnb-service-fees

[Paula1720]

Thank you for the response.  

is the 12% to 16% because of where you are situated?  We are in Canada, specifically in Ontario

Are the fees based on the services included with the rent such as extra people, cleaning services etc?

Below is what I found on the Canadian website:

Plus the commission from bookings as well as a 6%-12% servicing fee from guests.

[Sarah977]

@Paula1720  Location and length of stay. Nothing to do with the amenities offered. Hosts of entire homes usually charge a separate cleaning fee equal to what they pay the cleaner, because that is a one-time fee regardless of length of stay. The place gets cleaned once for a stay, whether it's a one night booking, or 2 weeks, so it's hard for most hosts to factor it into the nightly rate.

Airbnb calculates the service fee as a percentage of the nightly rate plus the cleaning fee.

[Paula1720]

Hi Sarah

Thank you.  So each host is required to automatically pay 3%

Then depending on duration of stay, 3 night or 3 weeks determines the rate of service fees correct?

[Sarah977 · Accepted solution]

@Paula1720  No, the rate doesn't change depending on the length of stay, unless you are talking about a long term booking, a month or more. The rate is set at a certain percentage and is charged on the entire booking cost. If it's 12%, it's 12% whether it's a one night booking or a 3 week booking.

But hosts don't generally pay attention to the service fee a guest is charged by Airbnb. It doesn't come out of the host's pocket, so why would we care? 

[Paula1720]

Thank you

So the host always just pays the 3% and guests will always be responsible for the guest service fees

That is where the split fee comes into pay on their website.

[Angelica-Y-Jorge0]

@Paula1720 all the host pays is the 3% the rest of the service fee is paid by the guest when they book. I'm not sure how Airbnb determines the percentage but I find it to be the same by area or location of the property.

Hope this helps.

[Emilia42]

@Paula1720 You only need to be concerned with the 3%. The rest of the fees are between Airbnb and the guest. 

[Paula1720]

Thank you!

[Sarah977]

@Paula1720  There are areas where a host-pays-all-fees is applied to some listings. These are hosts who have multiple properties and use channel managers.

In those cases the host pays 14% or more, the guest sees no service fees to pay. But of course those hosts have to up their nightly rate to cover the additional fees. It's basically just a different marketing strategy, so the guest sees the total price they'll pay right on the listing, rather than seeing a service fee tacked on when they enter their booking info. 

The guest ends up paying the same in total either way, but psychologically may think the ones with no service fees are a better deal.

[M199]

@Paula1720 

Hi Paula,

I am local to you and  can probably help you.  If you want, pls  private message me.

M199