Service fee charges - why is Airbnb charging the guest and host??

[Bronwyn58]

Why does Airbnb charge the guest and host a service fee. This pushes the price up by $20 per night - something is wrong! Pure greed so I am being forced to reduce my price so I have bookings. Please explain Airbnb- why ??  Feeling very angry and will have to look at alternate sites or offer discounts for returning guests who privately book. 

[Ana1136]

@Bronwyn58 because Airbnb needs the money to run the business. You can look up other websites that offer the same or similar service, you will find that their fees are pretty much the same. But on other websites it is usually the host who pays the entire fee. On Airbnb the host pays 3% and the guest 12%-20%. But by all means feel free fo branch out, the extra exposure is always a good idea. List on other websites, in local ads or newspapers. You can set up an Instagram and Facebook profiles, that is great free advertising. 

[Bronwyn58]

Thank you Anna, I have been a host for a year and today I only just discovered that Airbnb charge the guests as well, this came as a surprise to me. I truly doubt that  the changes need to be so steep as the administration of Airbnb would not be that great. I would like to look at there profit and loss statement. Yes I am on instagram but did it as a promotion for Airbnb - I will be changing that. Thank you again

[Helen3]

If you don't like to fees Airbnb charges @Bronwyn58  then certainly look at other listing companies and marketing your listing directly @Bronwyn58  but you will find you can't compete with Airbnb's marketing firepower. You would need to spend much more than the small commission you are paying now (thousands and thousands) to be able to get traction in the marketplace.

[Bronwyn58]

Thank you Helen. The charges were a surprise to me, I keep receiving emails from Airbnb suggesting that I reduce my rate for more bookings  in the quieter months perhaps Airbnb should follow suit and reduce their rates. Thank you again

[Sarah977 · Accepted solution]

@Bronwyn58  Ignore the proddings from Airbnb to reduce your rates. Ignore the price tips. Charge according to what you offer and how it compares with similar places in your area. The guest fees are not your concern, altho I agree they are high. 

[Bronwyn58]

Thank you Sarah, I probably over reacted when I realised about the fees. I will take your advice and I suppose the guest fees really are not my concern, yes excessive but then guests then have a choice to look elsewhere. Thanks again