Cash Payment on Arrival by Guest

[Fredrick0]

Hello community,

I am writing to you requesting your support on this issue, and also hoping the management of AirBnB will see this and act on this.

This issue is I would like to request is that AirBnB adds an option for a host to receive payment in cash directly from a guest on arrival. And this would work by AirBnB charging the guest's credit card for the AirBnB booking fees only (s that AirBnB earns its pay) but doesn't charge the hosting fee (room or bed fee). The room/bed fee will be paid by the guest when s/he checks in.

The reason for this request is I have noted that with current AirBnB policy of collecting room/bed fees on behalf of hosts there are following key shortcomings that negatively affect hosts:

1. Money is lost to third parties who provide no value at all. These are banks and money tranfer services such as Western Union and SWIFT. It happened to me whereby AirBnB sent $29 and I received only $9, and also sent me $550 and I received only $490. This is the biggest issue. These 3rd parties have no business eating such considerable amounts.

2. Money is delayed. It takes about 5 days to reach hosts account from the day AirBnB sends it. This is not a big issue, but I am sure you'll agree that it's better for the host to have the money on the day a guest checks in so that the host doesn't have to meet costs associated with hosting a guest out of their own pockets.

The aim of AirBnB is to help travellers (guests) find comfortable but cheap accomodation around the world. And also help hosts to earn something for their willingness to share space and for their hospitality.

Now if AirBnB doesn't allow Cash payments by guests on arrival it limits an opportunity to cut costs. Hosts like me who have to lose considerable amounts to 3rd parties will not be able to lower room prices, or offer more free perks to make guest's stay more enjoyable.

I hope I have presented my case clearly. I would appreciate your support on this matter as community members.

And I also hope AirBnB is reading this, and I am looking forward to hearing what they think about it.

Thanks and regards,

Fredrick

[Ed-and-Hugh0]

I think most of us don't want to handle the cash, or worry about guests who show up but refuse to pay. While this may work in some parts of the world, for most of us we don't pay any money transfer fees since we have direct deposit. I doubt this would be a high priority for Airbnb, and it would open them up to all sorts of abuse, where hosts and guests negotiated cash prices outside of the Airbnb system. This would raise the cost on the rest of the honest Airbnb hosts. Maybe you and other hosts in your area can work with a local bank to come up with a system that works better for you.

[Clare0]

Hi @Fredrick0, you have presented your case very clearly.  Seems like your concerns are bank charges, currency conversion fees and the delay in your receiving payment.  Many hosts around the world have these problems and, not being an expert in international banking, I have no solutions for that, unfortunately.  

But with regards to accepting cash as an alternative, let me play the devil's advocate here.   By paying Airbnb up front for reservations,  guests are making a commitment.  Without that commitment, guests would feel free to cancel or otherwise not show up and you would be left with no compensation at all.  In addition, your calendar would have been blocked for that guest with no ability to recoup the lost income. 

Also, what would you do if the guest shows up and doesn't have enough money?  What if they cause damage and can't pay for it?  What if the guest arrives and wants to negotiate a lower price at the last minute?  On the flip side of the coin, what protection does a guest have from unscrupulous hosts who at check in want to charge more than the posted price?

Cash transactions have a way of unraveling the reservation process.  By holding the reservation money, Airbnb acts as an honest broker to protect the host and the guest ensuring that both play by the rules. 

I wish I could solve your banking problems, but cash payments can do more harm than good. 

If you want to escalate your concerns to Airbnb, you will need to contact them directly as there are no Airbnb employess on this site, unfortunately. 

I hope this has been helpful,  Clare

[Fredrick0]

Whatever the drawbacks it would be nice to have it as an option. Because it won't impact Airbnb in any way. The risks will be to the host. So if the host chooses that option then he knows the risks and has accepted them.

[Marit-Anne0]

@Fredrick0

The airbnb platform is not really for you then.  If you go outside the platform, you risk being flagged and your listing taken down.

[Fredrick0]

I think you are confusing feedback/suggestions for improvement with violations. Or ae you saying Airbnb doesn't want any suggestions for improvement?

[Marit-Anne0]

@Fredrick0

I think you need to play by the rules and quite honestly I do not think your suggestion would be an improvement.  The setup is made to provide security both for host and guest.  

Any suggestions would have to be taken to airbnb directly anyway - this is just a discussion forum for hosts.

[Fredrick0]

@Marit-Anne0

I appreciate your taking time to contribute. I like discussing with community before taking the suggestion further. When you say this suggestion is not an improvement have you carefully read my presentation? I haven't said this should be the only way to be paid. It seems you are judging it in such context.

It's important to realize Airbnb is a global community, and rules of money are not the same the world over. That's why having an extra option that may help someone in a different jurisdiction is a suggestion for improvement.

For instance how do you collect money from Airbnb? And if someone pays $100 for your room how much of that would you get in your USD account (assuming you have one)?

[Marit-Anne0]

@Fredrick0

I do see your points, but airbnb is a global listing service rather than a community and their main aim is to make a profit.  One of their ways to make profit is to collect funds in advance and sit on these funds until the guest arrive and funds are released to the host.  And quite frankly I do not think they care much about fluctuating exchange rates that would affect hosts in a negative way. Part of the business.

[Sally41]

Hi Fredrick, This

[Sally41]

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[Matthew285]

@Sally41 how do you do that quote thing?

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@Sally41wrote:

Hi Fredrick, This

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Oh wait, just figured it out.

[Robin4]

@Fredrick0....If you are going to use the services of Western Union or Swift then you have to expect to be screwed. The pages of history are littered with examples of poor and expensive money transfers using these companies.

Now Frederick I understand that the banking system in Tanzania is probably vastly different from what I am used to in Australia but, what is wrong with joining Paypal in Tanzania and providing your bank details for a Paypal transfer. It is completely safe, there are no 'middle men' raking off a high percentage of the cream and you will no doubt receive the money faster than through these other dubious money wire services. Although they do have offices here, I do not know of a solitary person in this country who would use Western Union as a money tranfer link!!....cheers.....Rob

[Fredrick0]

@Robin4

I am not talking about Western Union here. Western Union is currently one of the options available through Airbnb. And it's worse than SWIFT bank transfers in terms of how much it costs.

I am talking about the guest physically paying in cash when they arrive. Like they do pay for other stuff in cash like visa, airport pickups and safari's, when they arrive here. Airbnb will charge only their fees and let the booker know that they need to pay the room fee in cash when they arrive. The beauty of this option is that all the risk is upon the host.

I have a Paypal account. However Paypal is not the same all over the world too. It has "send-only" countries. Tanzania is a send-only country. Which means I can use Paypal to send (spend) money, but I can not receive money (get paid) through Paypal.

[Leslie35]

Am new to Airbnb so am not sure what the rules were when I was bounced into recieving a guest this evening who is going to give me cash. Not wanting to deprive Airbnb of there much deserved fee, I plan to book and pay for the room myself in full on receipt of the cash from my paypal account. Is everybody happy with that? Had a long text convesation with guest through Airbnb so all is transparent. I immediatly took the four night off the system as have instant book enabled and did not want someone booking over the next 24 hours before they arrived. 

Will let you know if they turn up. As travelling long distence and taking a taxi from the station to get to me, saying they have to be at a funeral today. So will not be arriving untill 00.30 hours tomorrow.  It seems this person has had problems with financial transaction over her PC. 

Can I book and pay for a night retrospectivly? That is on the the 3rd June? for the night of the 2nd June? As will pay for it now and if they don't turn up I only lose a £1.

Les