Understanding AirBnB payment system

Lucilla21
Level 1
Moe, Australia

Understanding AirBnB payment system

Please Help!

 

There seems no way to contact anyone here that can help you with a specific problem. I don't understand the payment system. I have put my place on auto payment, but with a minimum payment which seems to have been ignored. 

So I had my first guest that is staying for over a month, took advantage of my first booking offer they suggested and the 45% discount for a month's stay. This bought my night rate down VERY low. Then when I get the money in my account this is now $150 less than I was told I was going to get. I have a lovely apartment style here and now they have it for less than you would pay to stay in a shared room in a hostel. 

I see NO explanation as to where that extra money has gone and I have no idea how they have worked out to offer my place for cheaper rates than I have said when I set up. 

Can you speak to someone about specific problems? And problems you are having with AirBnB, not the guest! 

I This isn't a good first experience I have to say....

7 Replies 7
Sarah977
Level 10
Sayulita, Mexico

@Lucilla21  Unfortunately you have started hosting at a time when Airbnb customer service is abysmal (they laid off a couple thousand staff or more, due to reduced income due to COVID) and both hosts and guests have had weeks long waits to get assistance. But other hosts here are often more helpful and knowledgable than CS staff, so you came to the right place.

 

You'd have to post your actual nightly price, the amount of the monthly price, and what you actually received, in order for other hosts to be able to help you figure out what might account for the missing $150. 

 

If it's any small consolation, you wouldn't be the first new host to find themselves hosting for practically free because of not having your pricing set correctly to what you wanted. Discounts are cumulative, so if you have a new listing discount on and also a 45% discount on a monthly stay, that means guests will get 65% off what you would normally want to charge. You'll just have to take this one as a learning experience (there are many) and change your pricing ASAP so it doesn't happen again.

 

One thing to be aware of is that experienced hosts don't listen to Airbnb's pricing suggestions. Those have nothing to do with them wanting you to be successful, they are only for the purpose of getting hosts to drop their prices to absurd levels so that guests will book (a 45% monthly discount seems way too high to me). Which means Airbnb gets its service fees, the faster the better, as far as they're concerned. Whether that means you can barely pay for the expenses associated with hosting isn't of any concern to them.

 

Decide for yourself what you are willing to rent for (don't sell yourself short), based on your own expenses, how much you need to profit to make hosting worthwhile for you, and what the market in your area will bear, and don't pay attention to Airbnb's pricing suggestions.

 

It's also not a good idea for a new host to take long-term bookings, because shorter bookings means you'll get reviews built up quickly. (Long term bookings aren't advisable for a number of other important reasons, too, and there are threads about that here on the forum- do a search). As a new listing, you get a boost in search rankings anyway, so that 20% off the first 3 bookings, I would shut off. That 20% off can help to get bookings quickly to build up reviews, but you've already negated the point of it by taking a long term booking.

 

Don't fret about about your newbie errors too much,  just get your pricing right and move on. And post the actual numbers here if you'd like other hosts to try to explain what happened with that missing $150. (it may, in fact, be an Airbnb error)

 

Very helpful Thank you @Sarah977

 

Actually I had changed a few things they have suggested but feels like they have been ignored too! I haven't been too good at checking exactly, but yes, I think I agreed to 40% monthly and something about first booking.... I didn't realise it was for the first 3!! I took the long term because I'm in Victoria and Melbourne was in lockdown and thought I may as well. But these are all good advices. Will take on board. Will check my figures and post. And yes, I have taken this as a steep learning curb!! 

Thank you once again. 

Lucilla21
Level 1
Moe, Australia

I was charging $65 per night, with 45% for a monthly. Then I hadn't realised the 20% (or something like that!) for first booking would apply on top. It was 39 nights. 

It said $2924 with $1900 discounts, then $34.10 in service fee and that I would receive $999.30. Instead I have received in my account $743.56! There has been no breakdown into 255.74 has gone. It's even more than I have quickly worked out when I first saw it. I am not sure where and to whom I can reach out too! 

@Sarah977 can you help or point me in the right direction? 

Thanks

Helen3
Level 10
Bristol, United Kingdom

I only offer a 10 % discount for monthly stays as I provide weekly Covid cleans and with winter coming my utility bills are up as most long stays working from home.

 

i would remove the new host discount and lower your monthly discount.

 

You should be charging  a price that gives you the profit margin you need. 

Not just following suggestions Airbnb gives you.

 

1. look at the budget you set up when you started to check your startup and ongoing costs

 

2. look at what those with comparable places in your area are charging 

 

3. Work out how many days a year you need to let your place to get the profit you need and cover your costs

 

I would advise against taking long term booking as a new host 

Karen3212
Level 1
Perpignan, France

I rarely have Airbnb bookings, mainly direct or thro B.com. Is there anyone who can help me understand a AirBnB transaction payment ?  What is:

Guest paid

For 7 nights                  560€

Cleaning fee                  35€

Guest service fee?    100.80€

Occupancy taxes         30.80€

Total                                 726.60€

 

Host payout

7 nights                            560€

cleaning fee                     35€

Host service fee             -21.42€

Total                                  573.58€

 

 

 

Thanks in anticipation.

@Karen3212  What the guest paid includes the Airbnb guest service fee and the Occupancy taxes, which Airbnb submits to the govt. on your behalf.

So what you are paid is your nightly rate plus the cleaning fee, minus the 3% host service charge.

Thanks Sarah