Guests no longer charged a service fee, is this the future.

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Jeff158
Level 10
Caernarfon, United Kingdom

Guests no longer charged a service fee, is this the future.

We have a new host in the UK, Ireland, France and Italy with 21,000 properties, cottages.com now advertise on airbnb, and airbnb do not charge a service fee to the guest on these bookings.

We have no way of knowing if its included in the nightly rate, cottages.com could be on a paid subscription or getting a big percentage discount.

[Link hidden] and just to wind me up a bit more, they are all on superstrict 60 policy.

 

My local host is Mandy with 100 properties to look after

[Link hidden]

 

*[Link removed for privacy reasons out of respect for the host – inline with the Community Center Guidelines]

 

1 Best Answer
Susan17
Level 10
Dublin, Ireland

@Jeff158 @Cormac0 @Helen3 @Sarah977

 

Cottages. com is just the tip of the iceberg. There are literally thousands of similar outfits flooding the platform now.

 

One of the most important rulings made by the EU was that offerings from individual hosts, and those from professional/commercial operators, must be clearly identified and delineated from each other on the site, as not doing so gives an unfair advantage to the big players. (That's quite apart from the range of preferential policies and practices Airbnb favours the Pro's with - incl. SuperStrict 30 and 60 canx - that are denied to regular hosts) Also, consumer protection laws differ greatly for each. 

 

2. Identification of traders and commercial content

 "It is understood, from Airbnb’s Hosting Standards, that certain professional providers are allowed to use Airbnb’s platform to offer their accommodation services. However, when searching for accommodation on Airbnb’s website, the search result shows accommodation provided by both private individuals and professional providers with no distinction between the two.   

 In particular, with a view to avoid omitting material information, the collaborative economy platform should, as a minimum, enable relevant third party traders to indicate to users that they are traders, and the platform should inform consumers whether and, if so, what criteria it applies to select the suppliers operating through it and whether and, if so, what checks it performs in relation to their reliability

With a platform like Airbnb, which enables accommodation sharing, the distinction between professional providers and private host peers may influence the decisions of consumers using the platform to book accommodation. In fact,  on the one hand the distinction has implications for the question of whether the transaction is protected by consumer protection rules and, on the other, many consumers using Airbnb are looking for private homes with personal involvement and not necessarily for professional property owners. 

CPC authorities find that the lack of distinction between private host peers and professional providers on Airbnb’s website is likely to deceive consumers in relation to the nature of the trader, as set out in art 6 (1) (f) and 7(1) and (2), and is likely to cause a transactional decision that would not have been taken otherwise.   In order to comply with the Directive 2005/29/EC, Airbnb would need to change the manner in which listings are presented in accordance with the legal requirements described above.   CPC authorities would also like to draw Airbnb’s attention to the UCPD’s requirements to clearly distinguish editorial content from advertising content. Consumers expect search engines to display 'natural' or 'organic' results relevant for their search query based on sufficiently impartial criteria.   

It is not clear to the CPC authorities whether Airbnb has sponsored content in the search results as of now, but for future reference please note that, as explained in the UCPD Guidance, consumers should not be misled on the nature of the listings. For instance, it should be clear whether listings / search results are "natural" or "sponsored" or whether there are other serious limitations in the scope of the search" 

 

 I attended a meeting at Airbnb HQ here in Dublin last Tuesday evening and asked, repeatedly, why professional operators and commercial entities are still being listed alongside (and invariably, above) regular hosts on the platform, in clear breach of EU legislation, particularly when the company is fully aware that in failing to comply, it is blatantly - and illegally - choosing to put its original host base at a potentially disastrous disadvantage. I'm still trying to get an official answer - or any answer at all -  almost a week later, but I won't be giving up anytime soon. 

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Alon1
Level 10
London, United Kingdom

Jeff,

 

I've just sent Mandy a message via a booking inquiry.

 

I've informed her of your post, predicting an avalanche or responses to your post. Consequently suggesting to Mandy that she might wish to contribute to this post by clarifying the situation.

 

 

Helen3
Level 10
Bristol, United Kingdom

That's interesting @Alon1 why would you do that? What is there to clarify? 

 

For some time Airbnb has given large scale holiday companies/management companies,  a commercial advantage over individual hosts, giving them more advantage cancellation policies, allowing them to discriminate in terms of age. And I believe it allows these companies to take a deposit.

Alon1
Level 10
London, United Kingdom

Helen,

 

Isn't it obvious?

 

Firstly, because it's news to me, and hearing an explanation from someone already involved may cut out an avalanche of speculation and clarify a.s.a.p.

 

However, I see that in the last few minutes Branka & Silvia are better informed, as they've posted an explanation that it's a trial.

 

Secondly, prior to seeing Branka & Silvia's post, I naturally imagined if there were differences between Airbnb charging Guests 'service fee' for some listings, but not for others, it would create an unfair market. 

 

I further guessed that it's highly unlikely Airbnb would not take a service fee in such cases, but the s.f. is rather sublimated/incorporated in the daily charge. Still, Guests would not necessarily know this, so they would naturally still be attracted to listings not advertizing a service fee.

 

Yet, in view of the link posted by B & S, it's most disconcerting to read:

 

  According to an Airbnb email obtained by PhocusWire, the new program will solely charge hosts a 12% fee — eliminating the guest and host fees that normally total about “15% of the listing price.” Guests wouldn’t see any fees on the frontend when booking.

 

'solely charge hosts a 12% fee' is three to four times the current amount of 3% + VAT.

 

The only thing that's not clear to me, while the article states the trial is of 'select hosts', B & S state it is 'professional property managers'.

 

 

 

Helen3
Level 10
Bristol, United Kingdom

No it wasn't obvious to me 🙂

 

I can understand you wanting more information about this, but seemed a strange way to try and get it by contacting an Airbnb property company not involved in the forum.

 

Fortunately some well informed members here have helped create more of an understanding of the trial and the fact that some are on more advantage terms than others.

@Alon1

Be extremely cautious about messaging other hosts and suggesting that they clarify policies and practices that Airbnb freely allows - in fact, encourages - them to operate under. 

 

That could very well be perceived by the guest (and by Airbnb) as harassment, particularly as professional management companies and commercial entities with vast inventories, are very much further up the Airbnb hierarchical scale than homesharers and small entire home hosts nowadays, and are treated and prioritised accordingly by the company. 

Alon1
Level 10
London, United Kingdom

Susan,

 

Thank you for your concern and advice.

 

Obviously it was not my intention to 'harrass'. 

 

I was rather simply asking Wendy to clarify the reason that she is not charged Service Fee for the purpose of this discussion on Airbnb Community Centre. 

 

I could have rather sent her an inquiry in the guise of an experienced Airbnb Host considering to book her listing, but perplexed as to why no 'service fee' was shown.

Is this a glitch, or  I the guest was still being charged service fee but under a different format?

 

I chose to be up front, because I prefer to act straight.

 

(Wendy hasn't answered me, nor has she contributed to this discussion so far. The only thing I note is that the listing I inquired about is 'Not Possible' to book now. So either it's been booked or she blocked the calendar for the 1st day of inquiry.)

 

Consequently, in view of your concern, I propose to bring this matter to the attention of the CC Moderator Lizzie, and ask for her feedback. If in her view I've done something inappropriate, I will offer my apology. 

 

 

 

 

@Alon1 I'm not saying for one minute that you've done anything wrong, and I totally understand where you're coming from. However, I reiterate my words of caution. Hosts are being arbitrarily - and harshly - penalised by Airbnb on all sorts of spurious grounds these days, so it's probably best not to tempt fate! 

 

And yes, I do realise thats ironic coming from me, but as someone who gets very few bookings from Airbnb now anyway, I have little left to lose. You, on the other hand, have. 🙂

Alon1
Level 10
London, United Kingdom

Susan,

 

I've just sent a message to Lizzie the Moderator for her feedback.

 

I've asked her to peruse this discussion, and to either inform me that I've done something inappropriate, in which case I would offer my sincere apology to Mandy. If that's the case, then I kindly asked Lizzie whether I should send the apology myself or let someone else do it, perhaps Lizzie herself.

 

Alternatively, if I have not done anything wrong, then I kindly invite Lizzie to comment on this post in order to clarify the position vis-a-vis my comment and your monition.

 

I wait Lizzie's reply.

 

 

@Alon1

Lizzie is not an Airbnb employee, but works for a London firm that specialises in online community software and platforms, and providing community management for brand-owned communities. 

 

While I'm sure she'd be happy to check with someone at Airbnb whether or not your 'suggestion" to Mandy overstepped the boundaries, it's not in Lizzie's remit to advise you on whether or not your actions on the regular Airbnb platform were appropriate. 

 

But as Mandy hasn't responded to you herself, it does seem quite possible that she may not have been best pleased by your approach. Perhaps best to leave it at that. 

Alon1
Level 10
London, United Kingdom

Susan,

 

As mentioned I sent Lizzie a message. I did so because it appears to me she is the Moderator on this website much as Peter and a couple of others were on the London Host Community Hub.

 

I don't know who else I might have messaged.

 

In any case, I'm more than happy to leave it that.....

 

I'm really busy with my own stuff, and just don't want to be dragged into endless to-and-fro.

 

I might just give this whole Community Centre a rest for a period.

Alon1
Level 10
London, United Kingdom

Helen,

 

Because I prefer to inquire from someone directly affected, which is the case with Mandy.

 

Moreover, I approached her with the mindset of my own situation as a private host. So individual Host to Host. Perhaps then I momentarily ignored the fact that she is evidently a representative of a company. 

 

Still, I clearly entertained the possibility that Mandy would consider to join the forum to offer her explanation. Best I can tell she is free to do so if she wish, or perhaps consult her company prior to doing so. ... Indeed, I don't see anything wrong by encouraging someone who I perceive is in the know to contribute to the forum.

 

Otherwise, as mentioned to Susan, I wish to desist from this endless to-and-fro. I'm far from a Level 10 contributor, and am saturated with my own work. 

 

In short, please forgive me from bowing out of this discussion, certainly till I receive a response from Lizzie.

 

 

 

 

 

 

Melanie818
Level 2
Strathdickie, Australia

Starting 11/1/2020, we’ll be switching your listings to simplified pricing—a new service fee structure that gives you more control of your final price.

What’s changingToday, there are 2 service fee structures: split-fee pricing with the service fee shared between hosts and guests, and simplified pricing with the entire service fee covered by the host. After 11/1/2020, split-fee pricing will no longer be available. That means a 15% service fee will be deducted from your payouts, and no fee will be charged to your guests—what you set is what guests will pay. Why we’re making this changeWe introduced simplified pricing last year, and hosts who tried it out and priced competitively across websites got an average of 17%* more bookings. We heard that removing the guest fee made it easier for hosts to price competitively, and we saw that guests preferred to book places that didn’t have a guest fee. This is especially important for your listings, since guests usually don’t pay fees on other booking platforms in your region. What will happen nextThis change will happen automatically on 11/01/2020 and will be applied to any bookings that you get after that date. We’ll send you a reminder 7 days before this change, along with a guide to walk you through changes you may want to make to your prices. Here’s a summary of what will change:

  • Your service fee settings will automatically change on 11/1/2020 for all your listings
  • We’ll deduct a flat 15% host service fee from each payout and won’t charge a guest service fee
  • This won’t affect any existing bookings you have and will only apply to any bookings you get after 11/1/2020
  • Using Airbnb after 11/01/2020 means that you’ve accepted this new service fee structure
Branka-and-Silvia0
Level 10
Zagreb, Croatia

@Jeff158

it's a trial, targeting proffesional property managers

https://thepointsguy.com/news/airbnb-considers-getting-rid-of-guest-fees/

Email received September 2nd 202... it's now a reality!!

Starting 11/1/2020, we’ll be switching your listings to simplified pricing—a new service fee structure that gives you more control of your final price.

What’s changingToday, there are 2 service fee structures: split-fee pricing with the service fee shared between hosts and guests, and simplified pricing with the entire service fee covered by the host. After 11/1/2020, split-fee pricing will no longer be available. That means a 15% service fee will be deducted from your payouts, and no fee will be charged to your guests—what you set is what guests will pay. Why we’re making this changeWe introduced simplified pricing last year, and hosts who tried it out and priced competitively across websites got an average of 17%* more bookings. We heard that removing the guest fee made it easier for hosts to price competitively, and we saw that guests preferred to book places that didn’t have a guest fee. This is especially important for your listings, since guests usually don’t pay fees on other booking platforms in your region. What will happen nextThis change will happen automatically on 11/01/2020 and will be applied to any bookings that you get after that date. We’ll send you a reminder 7 days before this change, along with a guide to walk you through changes you may want to make to your prices. Here’s a summary of what will change:

  • Your service fee settings will automatically change on 11/1/2020 for all your listings
  • We’ll deduct a flat 15% host service fee from each payout and won’t charge a guest service fee
  • This won’t affect any existing bookings you have and will only apply to any bookings you get after 11/1/2020
  • Using Airbnb after 11/01/2020 means that you’ve accepted this new service fee structure