Fees, Fees and more fees!!!

[Ed-and-Debbie0]

With the addition of "service fees" charged by Air BnB to the amount charged by the host, Air BNB is pricing themselves out of the market.  Some hosts even charge a cleaning fee of $25. or so You don't think you can clean a room and wash some sheets and towels inclusive in the regular room rate?  in addition to a service fee of 12 to 16% and then tax, even a modest home will now be costing in the range of $100. or more.  To add one more incumberance, many host are requiring a minimum of two or three nights.  Travelers are TRAVELING!  They don't want to vacation at your house!  This was susposed to be an inexpensive way for travelers to find a safe place to lay their head for the night and for the host to make a few dollars.  However, on a recent 3 week trip to Maine from Florida, I was not able to find ANY competively priced Air BNB homes so I settled for hotels and motels ranging from $50. to $100.  WITH breakfast!  Air BnB and host of Air Bnb you are losing your market share very rapidly.  Time to go back to what you are susposed to be.

[Deborah1]

Part of this is out of our control as hosts. For example, we have a 2 night minimum because it is a city ordinance. (Some are operating illegally, but we follow regs.) In addition, taxes are required and tacked onto the price by airbnb. I know many hosts charge a cleaning fee but we don't since it is just a room in our house. I would for a whole house. We also offer breakfast, but again I know many don't. If you just want a cheap place to lay down your head for the night, a hotel might be a better choice in many cases. I think airbnb, at least in part, is about the experience. Just my opinion.

[Cormac0]

@Ed & Debbie

Have you seen the post where a Guest requested and received in full his money back for a week’s stay in a posh apartment in London England because the Wi-Fi was down for three days, the days of Airbnb going back to basic’s is over?

I take issue with you regarding cleaning being a few towels and sheets, my apartment takes three hours to clean between stays why, because everything need to be inspected and cleaned before the next Guest of unknown temperament and sensitivities walks through the door, as one Host “Linda” if my memory serves me wright say, “Inspect for what you expect”

Then there the amenities/utility bills, maintenance, and repair bills to boot.

On top of all this Ed & Deb have you check lately with your insurance company, that your insured to have paying guest staying in your home as this usually involves an additional premium, if they decide to cover you at all.

If I was you Ed & Deb I'd check if you are making any money on your Airbnb activity other than having increased cash flow and I mean this in the nicest possible way.

Regards

Cormac

The Explorer’s Club Krakow III

The Explorer’s Club Krakow VIII

[Wei-and-Ting0]

Sorry mate i understand what you're saying but this is the wrong forum.

[Jessica-and-Henry0]

In my opinion, types of travellers are as diverse as types of listings.

I agree, in some cases hotels/motels might be cheaper than Airbnb mainly because hotels/motels are able to manage overhead and expenses in a way that individual Airbnb hosts cannot. 

Maybe Airbnb started out as providing a cheaper option than a hotel/motel, but if you take a look at the hosting standards Airbnb is asking hosts to meet it's not just about a cheap place to rest your head for a couple nights anymore. 

It's up to the guest to do their homework and decide what is the best option for them, in terms of service and price. Maybe in some areas or for some people, a hotel/motel is the better option. Maybe despite being more expensive, Airbnb is able to provide something the guest needs that a hotel/motel cannot. There is no one size fits all and being a part of providing different options for people with different needs is one of the reasons why (despite some shortcomings of Airbnb ) I am still hosting. 

Airbnb hosts don't have a say in the service fees or taxes. Maybe this is adding up to make the total cost unattractive/uncompetitive. But hosts should not be expected to lower prices to accomodate high service fees or taxes to a point where it costs more to host a guest than what hosts recieve as compensation. This is unrealistic and unfair - we are NOT non-profit organizations. 

[Mimi13]

"They don't want to vacation at your house!" Really??? You should have said,  "I don't want ..."    

I'm in a small, seasonal, resort area, a mile from the beach. Probably 80-90% of my guests are on vacation. Most of the rest come for a wedding, class/family reunion, or other event nearby. That means that all my rooms are usually booked for summer weekends. While I can clean a room and wash sheets and towels, it sometimes requires outside help, if turnovers are close together. There's also the bathrooms and shared spaces (kitchen, screened porch, fitness equipment, game areas, etc.) that my guests can use that have to be cleaned, too. The room may be 200 sq. ft., but the total is about 3500 sq. ft. (not including my private space). And an acre of yard that should be looking it's best every Thursday. And the 28,000 gallon, heated pool. Sure, you got these at your hotel; but did I mention mine are for my guests' private use? Did your hotel provide beach towels, chairs, umbrellas, and even a bag of sand toys? And bikes or a wagon to get it there, if you choose not to drive?

I suppose you ate out while traveling? My guests can save money and satisfy picky eaters while cooking here. They can make pancakes for the kids' breakfasts and grill hot dogs for lunch. S'mores around the fire is always a hit. And I do all the dishes, because they are on vacation.

Yes, I do have a 2 night minimum. There's both time and money involved to do a changeover. Do you really think your hotel/motel washed the blankets and bedspreads before every new guest? I certainly do here.

There are fees for most things in this world; it's just a way of life. My prices are based on what I choose to provide, and what I choose to charge. Fees just get added to that, and I can't do anything about it. (FYI - I don't charge a cleaning fee.) I've even been told by guests that I should raise my prices, since I ask less money and provide more than almost every other similar listing in this area. If I can't get at least $100 ($50/night) from a room (mid-week, mid-winter, cheapest room) I'm not giving up my privacy.

While your comments are valid for you and others who may be just passing through an area, it doesn't begin to cover all the possible needs and wants of an Airbnb guest. I think you will probably be happier in a hotel while traveling, and then you can choose Airbnb when do go on a vacation.

[Alice-and-Jeff0]

As you pointed out, you have options - you do not have to use Airbnb if it does not fit your travel plans. That's the wonderful world we live in. Just vote with your feet if you don't like the price. I've suggested this post get moved to a conversation forum and not Host Voice

[Lizzie]

Hello @Ed-and-Debbie0,

Lovely to meet you and welcome to the Community Center. 

This is a interesting discussion you have started here, I think it is alway interesting to hear from a guest point of view (as well as your with your host hat on) and to have an open conversation about this. 🙂

As @Alice-and-Jeff0 mentioned, I have moved your topic and replies to the Hosting board which will enable others to join in, as Host Voice is an ideas board. 

It would be great to hear more thoughts on this. 

Thanks,

Lizzie

[Avaya0]

I think you're right...Maybe if the fees weren't so mysterious.  The rates, with the cleaning fee, service fee, taxes, have become obnoxious.  Why not charge an all inclusive rate and keep all the "business" costs to themselves?  I don't want to see anything except the amount I'm paying per night. 

The "Fee" strategy in business today is a flawed attempt to get the consumer to be an empathetic partner in the business aspect of the transaction by providing this transparency of the normal cost of running a business to make it "feel" acceptable.  It's similar to having your car repaired and the shop tacks on a "Shop Fee" as if it should be be commonly accepted part of the work.  The same problem is happening in the entertainment ticket industry.

If you are going to provide a service, figure out what it will cost you to turn a profit, then advertise the amount you want in return for the service.  Period!  Consumers are not your business partners.

[Lizzie]

Hello @Avaya0,

Thanks for sharing your thoughts on this.

Just to explore this a little further, so instead of seeing the breakdown, you would prefer to see the overall cost from the beginning of your search? 

[Avaya0]

Yes, it would be easier for browsing places and their cost!

[Annette76]

I started out as a guest via Airbnb. All my stays were at locations I was traveling to for pleasure, not just a stop on the way somewhere else.  For me, the Airbnb option was for the experience. 

I will be hosting my mountain cabin guest space soon. It is not on the way to anything else, if they are at my place it's because that was their destination.  Between washing sheets and towels, vacuuming, dusting and mopping the space, it takes me around 3 hours to do a thorough cleaning and set up of the space. I'm charging a $30 fee per stay, so I'm getting $10 an hour to clean (actually less because I'm not factoring in the cost of the cleaning supplies). Like others have noted, my development has a 2 night minimum so I comply. 

[Avaya0]

That's all well and good... but build it into your rate.  The traveler doesn't need to know.

[Cathy172]

@Avaya0 Personally I like to keep the cleaning fee separate. A cleaning fee makes shorter stays feasible. With some variation based on how tidy each group is, it takes me about the same time to clean all surfaces after a short stay as for a long one.

[Fred13]

@Ed-and-Debbie0"This was susposed to be an inexpensive way for travelers to find a safe place to lay their head for the night and for the host to make a few dollars."

That was the original concept, and now Airbnb is ~also~ something else, meaning now offering places that are true destinations. Not only that, Airbnb offers places that are even unique and 'unusual'.  Few businesses stay the same, they tend to morph over time. Oftentimes a new one starts focusing on the original concept of a business another abandoned. Wal Mart is a good example, it started as a 'Cosco' type, then went into a typical 'K-Mart' model, then the rise of Sam's Club, which Wal Mart started in parallel not to abandon entirely the original 'bulk-shopping' concept. I could see it now, a new 'Original Airbnb'. Not that crazy of an idea, or is it? 🙂