Has anyone noticed an major increase in the service fee AirBNB charges?

[Kate240]

We have just had friends try to book our flat through AirBNB and they are being charged 14.8%. Last month it was 3.6%. We did some research and our guests are being charged between 14% and 18% on bookings (it's not a flexible fee rather than a fixed 3.6%). What has happened? This makes hosting financially impossible for us (as we're no longer getting books and will need to reduce out nightly fee by 14-18%). 

[Gerry-And-Rashid0]

@Kate240

Hi there....there has been no increase in the fee charged to guests making a booking - below is the breakdown. For example when I looked at two weeks in August the % was just under 10%. The longer the stay the lower the %.

I would advise that friends of your do not use the site ? They should come direct to you and you could give them a discount based on the service fee that you are charged (a flat 3%)

One additonal comment that may help with bookings

Your place looks lovely but I can I suggest that it is very bare. The main living area looks cold and unwelcoming - and the other rooms could do with additional photos. Right now there are properties in your price bracket of the same quality that have much more appealing photos. 

Fees

Guest service fees are typically 6-12% but can be higher or lower depending on the specifics of the reservation.

The higher the subtotal, the lower the percentage so you can save money when booking large reservations.

We also charge hosts a host service fee to cover the cost of processing payments.

VAT charges on service fees

Depending on the laws of the jurisdiction involved, VAT may be charged on top of the service fee. The service fee will include these VAT charges when applicable.

Note: Accommodation fees are charged to the guest directly by the host and may contain local taxes (including VAT).

[Kate240]

Thanks for your comments Gerry, but last month our guests only paid 3.6%. It was a flat fee that all our guests paid regardless of length of stay. Now it seems to be variable and much, much higher. On one booking I tried to make (one someone else's flat) it was over 18%. That is an extraordinary hike from one month to the next! 

In regards to having friends book through Airbnb, we were wanting to do with because we are new to hosting and have no reviews. It's very hard to get bookings without reviews so we were happy to pay Airbnb the service fee so that our friends would be Airbnb guests and could legitimately review our flat. 

We are also aware that the apartment needs further decorating. As we are new to hosting we are still in the process of setting up the apartment. We won't actually be hosting until mid-June to allow time for all the decorating to be complete. 

[Gerry-And-Rashid0]

@Kate240

Hi there - all I can say is that your guests were very lucky if they paid only 3% '''ish.... The fee to guests has always been variable and around 10% ish for a week...(other factors depending). It's not that out of step with other sites either..

Makes sense about your friends then...but what you can do is get them to book a week and then give them a discount to make up for the AirBnB fee. Reviews are important as people want to know what other guests thought of the place, etc..

Good luck - I  am sure it will be popular. Great city..

[David126]

Sens your friends a special off for whatever is the minimum.

Guest fee for me is 12% they also pay 3.9% lodging tax on the whole. Rounded.

[Nancy235]

Hi Kate,

You are not alone.  My service fees have also tripled over night.  It happened when I went to superhost status. I don't feel I will get as many bookings now.  Dissappointed

[David126]

$79 x 2 nights

$158

Service fee

$21

Total$179

@Nancy235

If you were being charged a third then your fee used to be less that 5%?

[Nancy235]

A previous $80 reservation (1 night) had a $2 guest service fee.  Now that reservation would have an $11 guest service fee.  A big jump.  It seems that many have seen this type of jump, while many find the higher service percentage to be their norm.  

[David126]

I have not heard of service fees charge to guests so low, I have only been on ABB for 2 years, perhaps it was some type of promotion?

[Maureen139]

Last month (and every month prior) if a guest booked the room for one night, it would be a $2.25-$3 charge (depending if it was the weeknight or higher weekend rate). It is a private room, $55-70/night, $20 cleaning fee. Today I checked and it is $10! I have no idea why this happened. 

[Robin4]

@Maureen139 @Nancy235 @Kate240

Maureen.......You host in San Diego County, and Airbnb are required to collect a 'transients' tax on all short term rentals in that county. Here are the current regulations...

San Diego

Guests who book Airbnb listings that are located in San Diego, CA will pay the following taxes as part of their reservation:

• San Diego Transient Occupancy Tax: 10.5% of the listing price including any cleaning fee for reservations 30 nights and shorter. For detailed information, please visit SanDiego.gov.

This tax forms part of your Airbnb service fees and if you wish to see a breakdown of the service fees and the governemnt taxes go to....... 

https://www.airbnb.com/my_reservations and under each reservation you will see this breakdown.

Airbnb's service fees to hosts has not changed since the superstrict cancellation policy was introduced and is currently between 3% and 5% depending on your cancellation policy and it is probable that this tax collection is being reflected as an increased service charge.

Cheers......Rob

[Maureen139]

Thanks, Rob, that makes perfect sense... wish I'd known!!

[David126]

@Maureen139

Certainly not obvious and not normally how it done, usually the tax is an add on to the guest.

Essentially you need to increase your price to get the same net.

[Robin4]

@David126....as always you are right David and in general if occupancy tax is being collected for a hosts area, it appears as a line item on the hosts listing’s public page. You can also confirm what taxes are being collected and remitted by looking for occupancy tax details in Manage Listing > Location, underneath the Guest resources section.

Taxes collected on reservations do not affect the amount of host payouts. Hosts continue to get their payout of accommodation fees minus Airbnb service fees. This is not so!!!

In Australia Airbnb are required to pay a VAT of 10% on their service fees and they simply add this VAT fee to their service charge and you have to access the VAT receipt to see the breakdown....The host does receive less.

Not being involved in hospitality taxes in this country I would like to see how a hosts listing page differs from mine where such taxes are collected.

I can only say that we have seen this scenario so often and when you do the breakdown the discrepancy turns out to be the hosting tax percentage.

Cheers.....Rob