Hosts paying ALL fees???? Oh no!

Mel6934
Level 2
Jacksonville Beach, FL

Hosts paying ALL fees???? Oh no!

I accepted the idea of me paying the guest fees. Very disappointed that I cannot go back on my decision. - That was not well specified…. by the hosts paying all the fees, it shows a bigger gross pay, so I have to pay more taxes on top of everything…. And actually my prices dropped by at least 15%. When Airbnb increased the prices I couldn’t get any reservations. So sad and disappointed.  Is anyone experiencing the same issue? 

MP
3 Replies 3
Mike-And-Jane0
Level 10
England, United Kingdom

@Mel6934 why do you have to pay more taxes? Surely you pay tax on the net amount after costs and the costs have gone up if you are paying the guests fees.

Emiel1
Level 10
Leeuwarden, The Netherlands

@Mel6934 

If you have a choice, it is displayed in your account in section "payouts/payments" , tab "service fee"

Offcourse you need to increase your prices if switching to "Host-only" fee, as with that option the guest is not charged  service fees anymore.

You also will find lot more information in othere threads in this community (Use search option)

Sarah977
Level 10
Sayulita, Mexico

@Mel6934  The additional service fees are to be used as a deduction on your taxes, not an increase.

 

And of course you can't leave your pricing  the same if you are now paying the entire service fee. Just as before, the guest is essentially paying the service fee, it just isn't evident. It's just a marketing gimmick- the end total to the guest should be same, more or less, either way.

 

To use easy numbers, if your nightly rate was $100 before, and the guest then had a service fee of 15% tacked on, their total to pay is $115.

 

If you are paying the entire service fee, you need to raise your nightly price to $115. Guest still pays a total of $115, you still make $100.

 

Unless you use a channel manager, though, you can change back to the split fee system if you want to. It just won't apply to any pending reservations made under the host-pays-all option, only future bookings.