Why and I coming up with close to a 15% service fee airbnb is charging the guests for booking a hosts home? I didn't think it was 15% ?

[Katie269]

15% seems high for Airbnb to charge in these times when host are trying to rent their homes, could they lower their service fees just for the month of April in good faith to hosts to say 6%???

[Spencer131]

Hi @Katie269, you are correct. They increased their rates this year. I was disappointed to learn that, especially after they had overrode my cancellation policy. I would have at least liked to have been made aware of the changes. It feels less and less like we are partners and more like their inventory. Disappointing for sure.

They increased the guest service fee from 5-7% to 14.2%. I confirmed it was increased this year with Customer Support.

Message from Airbnb: "I have checked the previous service and yes, there had been a slight increase with the guest service fee which was implemented this year."

I agree that they should lower these rates, at least during the time of this unprecedented crisis. Got to say it is making consider marketing on alternative platforms! Time will tell if guests agree that the fee is too high and start booking through other channels.

[Katie269]

Thanks, I agree but I have noticed airbnb keeps suggesting lower nightly prices for us than they have the previous 6 years we have had our home on the site. So I guess their strategy is to raise the service fee on the guest and get the host to lower their nightly price. Its a squeeze play. Its dangerous as well in these times I would think they would lower it, but the company is trying to go public with an IPO so I am sure that has everything to do with it.

[Ute42]

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@Katie269 

All the big OTAs are charging service fees in the 15% range.

Airbnb has 100 problems, the 15% SF isn't one of them.

[Spencer131]

@Ute42That's good to know. Candidly, I was having trouble finding what the other OTAs were charging to guests as well so I suppose that is some what reassuring.

@Katie269I am certain the lower price suggestions is a combination of the 'squeeze play' you suggested so that the rates somewhat balance out but it is also simply a factor of less demand. I know my projections for the next year have gone out the window since travel will undoubtedly change and take quite a while for it to rebound. Covid is what is impacting us now but pretty soon the economic impacts will be what affects people's decision-making regarding travel. Though I do think vacation rentals have a better outlook than the massive hotels and resorts. Hopefully things start to turn around soon and Airbnb does take measure to minimize the impact. I'm sure their IPO plans have been heavily impacted so that will certainly be a factor.

Skift has been a great resource for me to 'stay in the know'. I found this article, as well as others, particularly insightful: https://skift.com/2020/04/08/airbnbs-valuation-almost-halved-to-18-billion/

[Katie269]

I don't know if I agree as I had lots of bookings for April and May at the 15% airbnb is charging the guests but once they all canceled I think a good sign of faith would be for airbnb to lower that fee since our bookings across the board are in trouble.

[Jessica-and-Henry0]

@Katie269 

My experience based on information previous guests shared with me is..... % of guest service fees differ depending on booking total, ranging from 13~17%. The host service fee that Airbnb takes out of my payout has always been about 3%. 

So the difference between what the guest paid and what I get has been somewhere between 15~20%

[Debra300]

My St. Lucia property is also listed on Expedia and Booking.com.  They each charge me 15% commission, and I have to incur the credit processing fee, which is 3.5-4.0%.  Additionally, I have to deal with the headache of non-valid credit cards.  Both OTAs (online travel agencies) allow a guest 24 hours to provide a valid form of payment.  During this time your calendar is blocked.  Expedia also has an option where they collect the money for you, and that fee is 20%.  Their preferred payout method is via EVC (electronic virtual card) which is processed like a credit card (so that's another fee to deduct out of your earnings).  Otherwise, you can invoice them, and it takes 30 days to receive payment (direct deposit to my bank account).

Of course, all of these fees are still passed onto the guest.  So, Airbnb isn't charging any amount that isn't the current norm for OTAs.  Personally, I prefer paying Airbnb their 3%, and knowing that I will have money deposited in my account the day after the guest arrives.  What I like about processing the payments myself is that I have the credit card number or cash for the refundable damages deposit.  For cash deposit, I usually charge no more than $300USD for the guestrooms, and $500USD for the apartment.  Although this amount would barely scratch the surface for repairs or replacement, it's a great behavior modifier.  Compared to guests where I've not taken a deposit, the aforementioned guests take more precautions with the amenities and furnishings.