VRBO’s new 10% max traveler fee

Angela1311
Level 2
Gilbert, AZ

VRBO’s new 10% max traveler fee

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?  

 

 

1 Reply 1
Alon1
Level 10
London, United Kingdom

@Angela1311 

 

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%.