New 10% max traveler fee

[Angela1311]

Our 3 bedroom, 2 bath Airbnb property is located in a small, rural town of 1,200 residents—where the nightly one-room hotel rate hovers around $80 (plus local and state tax). Our property’s nightly rates of $110 weekday and $132 weekend (plus cleaning fee and taxes) are competitively priced. However, the additional 13% Airbnb fee (average) is tipping the scale and placing our property at a significant disadvantage. We’ve had several guests reach out about booking—completely onboard with the nightly rate, cleaning fee and standard taxes. However, upon discovering the additional 13% fee—they walk away from booking with our property. This is an issue.
I called VRBO and their new policy guarantees travelers will not be charged above a 10% fee.  As a competitive partner in hospitality, is Airbnb able to match or beat this rate?  

[Emiel1]

@Angela1311 

If your guests are charged on average 13%, they are lucky, as the fee mostly is in the range of 15 to 18 % (except for stays over 28 nights, then it is 10-13%):

https://www.airbnb.com/help/article/1857/what-is-the-airbnb-service-fee

Best regards,

Emiel

[Angela1311]

Well that totally sucks—sorry Netherlands!  Looking at VRBO as a more viable option...

[Emilia42]

@Angela1311, word on the street is that Airbnb will eliminate guest service fees by the end of 2019. Fees will be transferred to the hosts. 

http://www.vhrnetwork.com/news.13

[Ann72 · Accepted solution]

@Emilia42 I "liked" your reply, but I don't like this move, because it means we'll make less.  The fact that they take part of the cleaning fee also boggles my mind, since I pay that directly to my cleaner.  And this after they demand to know if my cleaner is paid a "living wage."  Yes, she is, and I'm not going to deduct anything from what she's earned.

[Emilia42]

@Ann72, I don't like the idea either! I would have to raise my rates to include the 14%. I only hope all other hosts in my area will also feel the need to raise their rates. 

[Angela1311]

Need to find a better way.  

[Alon1]

@Angela1311 @Emilia42 

Angela, you posted your thread twice.

I just replied on the other thread, copy here:

In some cases Airbnb can better VRBO.

See 'Help', type: 'Service Fee'.

It reads:  'The guest service fee for homes ranges between 0% and 20% '

The 0% began some time ago, when Airbnb began to incorporate management companies who operate 100s of listings.

We can best speculate Airbnb negotiate an annual fee with these management companies, and the companies cost 'service fee' into their nightly rates.

It seems Airbnb are aligning with other websites who similarly don't charge Guests a service fee.

It obviously disadvantages normal Hosts.

The fear is that Airbnb will eventually make this uniform, likely meaning service fee charged to all Hosts will escalate well beyond current 3%.

[Alon1]

ps. This is one company in UK with 0% Service Fee.

Cottages,Com

 

It seems Cottages, Com operate exclusively in Wales.

Last week they had over 800 listings advertized. This week it's down to 729.

@Angela1311

[Ryan611]

Good information to know.

thank you.