Varying Service Fees being charged for identical properties & rates

[Amy792]

Has anyone discovered their listing is being charged more in service fees than that of a neighbor for same exact rental dates?

I was doing some pricing research to see what my neighbors are charging, so did a specific search for my condo building (zoomed in on location). Noticed my neigbor in my condo building with same floorplan as me (# rooms & baths, end unit,  same floor, etc...) was charging just $2 more per night than me, but his total price was less than mine. Clicked on his listing and then mine to see price breakdown for each of our units and found the service fee on my listing is about $50 more than his! 

I called Airbnb to inquire and was told there is an algorithm applied and the rates can vary from 11-15%? How can this even be legal? Airbnb is SO against any form of discrimination, but I feel this is a discriminating practice!

Thoughts appreciated!

Amy

[Barry-and-Lera0]

@Amy792: Maybe your cancellation setups are different. You pay more of hosting fee if you have a moderate or strict cancellation policy. 

[Alon1]

@Barry-and-Lera0 

Please note my comparison below for 2 rooms in my own home.

Cancellation Policy is Strict in both cases.

Consequently, it seems you hypothesis is wrong. 

[Barry-and-Lera0]

@Alon1: ok. Good luck figuring out your issue.

[Alon1]

@Barry-and-Lera0 

Thanks for reply. 

However, please know I have no intention of figuring out my issue.

I've noticed it sometime ago and just let it be.

I've long ago realized Airbnb work in some mysterious ways.

I don't lose sleep over it.

[Amy792]

@Barry-and-Lera0 

Just checked and our Cancellation policies are the same, so don't think that is the case. 

[Alon1]

@Amy792 

Yes, I've noticed it even with reooms in my own house.

As an example, I've just compared two rooms with identical price for a 6 day period for 1 Guest.

Both total £ 267 rental & cleaning fee. But one room shows service fee £ 35 and the other £ 48.

[Amy792]

@Alon1 

Yes, that is really weird!

Do you have more rental reviews for the room with the higher service fee? I noticed I have more reviews on my property than he does...

[Alon1]

@Amy792 

Yes, 72 Reviews for the room with £ 48 service fee. 

          51 Reviews for the room with £ 35 service fee.

[Amy792]

@Alon1 

Maybe that's it! Airbnb's algorythm is trying to boost less performing listings! 😉

If so, I do not agree with this practice as it punishes me for having more bookings/reviews. My neighbor also lists his property elsewhere, whereas, I do not. Hmmm....still seems discriminitory, in my opinion!

[Alon1]

@Amy792 

Your premise is tempting to believe.

However, I've also just compared the two other rooms in the house. [4 rooms in total]

In this case, I've also entered identical dates, same prices, and the service fee is identical.

But the one room has 86 Reviews and the other 64.

Consequently, it doesn't seem as simple as 'tying to boost less performing listings'.

I am left to reiterate my response to Barry & Lera.

Perhaps someone else in CC will have figured it out.

So we must wait see what other contributors might illuminate.

[Ian-And-Anne-Marie0]

@Alon1 

Maybe it’s based on the host account?

[Alon1]

@Ian-And-Anne-Marie0 

Ian,

I don't understand what you mean by 'host account'?

At least given to the best of my knowledge I only have one account for all my listings.

In sum, I've just contributed my info as emperical evidence, but don't have a clue how to explain it.

If you can explain further would appreciate it.

[Ian-And-Anne-Marie0]

@Alon1  All your listings are under your one host account. Each of your listings belong to Alon.

[Alon1]

@Ian-And-Anne-Marie0 

Thanks.

We agree on this fact.

But it still doesn't explain the issue raised by Amy. 

I know there are some knowledgable contributors to CC who may well understand it.

One possible is Ben (a Brit living in New Zealand).

.