What is the percentage of the guest service fee? What is the percentage of the host service fee?

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Sandy33
Level 3
Brookhaven, GA

What is the percentage of the guest service fee? What is the percentage of the host service fee?

What is the percentage (or $ amount) of the guest service fee?  What is the percentage (or $ amount) of the host service fee? Are these service fees a percentage of the monthly rate set by the host?  

 

I charge $1650 per month plus a $120 cleaning fee for the entire stay.  I am renting a fully furnished 1200 s.f., 1-bedroom, 1-bath apartment with a dedicated laundry room for the apartment only, an office with a wireless inkjet printer/scanner/copier (paper and ink supplied) and office furniture and a furnished, covered brick terrace overlooking a ravine -- all of this in a close-in location in Atlanta, GA.  

 

A potential guest (referred by a previous guest which is why she has my contact information) just wrote me and told me that Airbnb is quoting her $1903 per month for a stay of May 14 -- July 30. That is way out of line!  Her friend (the one who referred her to me) was here last summer for the same amount of time and she paid $1737 per month. As I was looking up these transactions I noticed that a guest who was here last summer for a month and a day paid $1829.  Meanwhile, my current guest who arrived February 1 and will be here through March 31 is paying $1690 per month.  None of this makes any sense.

 

I do not allow my rates to float (as Airbnb wants me to do).  My rates are always the same.  I rent exclusively through Airbnb, to business travellers who will be here for 30 days or more.  Looking at this wide variance I may have to re-think my loyalty to Airbnb.  But what do a tell the potential guest who is being way overcharged, I think -- and as a result may not stay with me?

 

Sandy

1 Best Answer
Jd23
Level 2
Las Vegas, NV

I really don't understand what's so hard to understand.

 

Say you're a farmer selling eggs. I'm an egg broker. You tell me what cost you want for your eggs. You apply whatever value you think is fair.

 

I then buy your eggs at your price, go out and build a market that didn't exist for your eggs prior, add 18%, 20%, or even 30% markup, find customers who are willing to pay that cost consistently -- creating sustainable revenue streams for us both -- and you cry foul, suddenly feeling like you deserve more of the cut??? Who's the real greedy one here hmmmm. 

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124 Replies 124

Im a new host and have my first confirmed guest coming in July. She said her fee was of eur388, and thought something was wrong. I said, well, I'm getting EUR 289 from airbnb and I really believe somethings odd. I read that airbnb take 3% of earnings  Well this booking adds up to 25%!!! What should I do. Also when does the money come thru?? 

Hi Sandy, It looks like Air BnB is taking on the same ridiculous practice as VRBO, Homeaway, Home to Go, and Vacation Rentals. These companies are all the same company with a different name. They were bought by Expedia and since then have been ripping off vacationers by promising them that the rates are lower if they book on line with them. They also tell people that the owners don't want to talk with the vacationers. Neither of these statements are true. I was going to try Air BnB but after reading whats happening i'm not going to. If you look on Google and type in "VRBO Complaints" you will see the same thing happening there.

 

I want to rent a room thru airbnb but I still dont under stand the fees I would pay if the rent amount is $500 a month what would I pay and do I pay airbnb or the person renting room (host) I wont rent until I fully understand  thanks

I feel the same way

I can’t seem to get a straight answer anywhere as to what I have to pay in addition to the hosts fees 

Hi Oomesh. I am also shocked to learn the AirBnB is charging such high fees to guests. I've calculated that the total services fees on a recent "special offer" i just made to my guests, equated to about 17 or 18% (Yes $38). That's prior to the services fee coming off my payment also. This is enough to quit AirBnb. 

 

So Sad

Airbnb collects lodging taxes on behalf of local authorities in many areas, these can range from 5% to 18% so that is why it can vary so much 

I am still confused. There is a big difference between 6-12%- I just want to understand the total amount taken off (what is the actual %) the top from Gross Earnings to the Pay-Out. I realize I can use these 2 sums and define the "average"  % difference but I want to understand why the reason specific for my individual listing. Airnbnb states that the fee is between 3%-20 %, that's a wide range. Currently, I am calculating an average of 20% in total income for air bnb per each reservation. Can someone help? I'm writing a budget for the homeowner and would like to determine the bottom line income she can expect vs. the actual per room rate listed.

 

Also, can someone explain how the additional 20% in income/bonus earnings are calculated for becoming a Superhost?

 

I went live 3 weeks ago and I have been booked solid every night with mainly 1 night stays. I am at the beginning stages of understanding Air bnb's business! Any assistance is appreciated!!

AIrBnB has started charging me slightly more than 3%.  I notice it because I keep track of all of my bookings in a spreadsheet which auto calculates the fee.  They are taking about 3.65% and they never informed me of a change.  This just started this year.  

 

I suspect AirBnB is playing games with owners as well as renters, and hoping nobody will notice.

David126
Level 10
Como, CO

$1903 sounds about right.

David

Thank you, David.  

 

I appreciate your taking time to answer my inquiry.  However, there is no way that $1903 is "about right" when the monthly rate for my apartment is $1650 per month plus a $120 one-time cleaning fee for the entire stay.  $1903 is 15.34% of the monthly rate.  Even assuming that the cleaning fee was prorated across the 3 payments, my guests are still being charged a 13% service fee.  Per month. For a 2-1/2 month stay.  Plus that appears to be a huge increase over Airbnb fees charged last year (2016) for the same time of year, same length of time.  

 

I thought the service fees Airbnb charged were around 3% from me, the property owner, and around 6% (or less) from the guest(s), the renter(s).  

AirBnB state 6-12%, all mine are around 12%, not sure when the lower rate kick in.

 

https://www.airbnb.com/help/article/104/what-are-guest-service-fees

 

What are guest service fees?
 

To help cover the costs of running Airbnb, we charge guests a service fee every time a reservation is confirmed. The amount of this service fee varies and is based on a percentage of the reservation subtotal (before fees and taxes).

The exact amount of the service fee is displayed before guests confirm a booking. 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.

Find the service fee

After entering the exact dates and number of guests for a reservation, you’ll see the service fee included as part of the booking details.

The exact amount of the service fee is also located on:

  • The checkout page before submitting a reservation request
  • Any guest billing receipt
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).

Trip cancellations and reservation changes

See the effect on service fees for the following situations:

  • If a reservation request is retracted, expires or is declined, we don’t charge the guest a service fee
  • If a guest cancels a reservation, the service fee charged to the guest is non-refundable
  • If a guest chooses to be refunded after a host cancellation, the service fee charged to the guest is refunded
  • If a reservation is changed, the service fee charged to the guest adjusts with to the new subtotal
 
David

Sandy, 

  I agree with you here. I've been using airbnb for traveling and hosting for a few years and I believe the quoted percentages are wrong as well. Email me at [personal information hidden], and I'll share a spreadsheet with you that may help.

 

**[To send a direct message here in the Community Center, hover over the profile photo on the post and click 'send message']

Dear Mandy,

I am a doing research as to why my recent guests were charge a total of $42 in service fees when I quoted them a price of $190 for two nights. I am horrified that Abnb is now ripping guests off. This additional charge was avaialble information to them, which they accepted as an oversight, and to which I was not given privy.

I have not been able to locate any breakdown of cost and think it is absurd. I now understand why folks have recently made reservations and then cancelled.

Thanks for you help,

Katie

 

Go to your listing, go to your prices and there is a price calculator that will show you what a Guest will pay.

 

The Guest will have a breakdown on their confirmation they receive once they have booked..

David