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

This was the SINGAPORE $200 off code, not sure about how it happened but can not imagine it was intential. And I doubt many people who used it would have otherwise booked. Or rebooked.

 

I may pay attention th=o their price suggestions if I start getting suggestions to increase my price, yet to happen.

David
EcoBuilt0
Level 3
Pennsylvania, United States

No, Airbnb is attempting to drive hosting prices down in order to compensate for their increased service fees.  Squeezing hosts is not really the way to go.

Same story as most of these great services when they take on investors and go public with IPOs. Shortsighted greed. 

I’m trying to book a room apartment in Washington DC and there is a 20 percent service fee two nights at $70 a night is 140 $ without the cleaning and they’re charging me $28 service fee as a renter I don’t understand where that huge number comes from thanks Jonathan

 It would seem Airbnb charge what they think they can get away with, likely depending on the popularity of areas. It is getting out of hand and opening up the market for new services that don't gouge customers. 

Kristin116
Level 2
Los Angeles, CA

Actually seems to have gone North of 15% by my bad math.  I'm new to this whole thing so perhaps it is indeed my bad math, but...I booked my very first reservation for a total of approx 5k coming to me, but the client was actually charged $6250.  I'm like what?!? That's a whole lot more than 15%; in fact, it's over 25%. I get that Airbnb needs to get paid for their site and services, both of which seem to work well, but over $1200 to just the client (with myself as host getting charged anoterh fee altogether) seems really steep.  

@Kristin116

 

Did you take into account Occupancy Taxes?

David

hmmm yes you're right there are those...thank you for the reminder. 🙂 Still - hard to keep track as there's no breakdown provided that syncs up what she's paying vs what I'm receiving. AGain, I'm totally fine with Airbnb getting paid for their services and efforts. Setting up the infrastructure and vetting and all the rest is much appreciated.  That said, it's not clear. 

 

I only know what the client is paying because she told me as I was still figuring out the nightly vs weekly/monthly rate while she was deciding/house hunting so I wanted her to know I would honor the lower rate to her while my rate was going up.  Plus she's getting a 20% 'new listing' discount so we were just trying to figure out how Airbnb came up with the amount she was charged vs the amount I was getting, less fees. 

 

 

@Kristin116

 

I am getting on for a thousand bookings and nobody has ever asked me that, when someone books they get a detailed breakdown of charges, you can see yourself what they are, so sounds to me that there is something else going on.

David

Not sure what you're inferring exactly, but it doesn't seem like anything is "going on" other than perhaps what many others have noted here -- a lack of transparency. Not suggesting anything nefarious mind you  -- again, Airbnb has every right to charge for their services and platform -- it's just that their percentage practices could be more clear - for example, why the sliding scale? If you're going to charge a percentage, that's totally fine, but on what total are you basing your percentage and how do you decide which percentage to charge? Is that asking too much? 

That said, I totally appareciate and respect your level of experience in the matter...I'm a newbie here so know less than nothing. 😉 

David126
Level 10
Como, CO

I went and looked at your listing, did a dummy booking and all the costs were there before I needed to press any book button.

 

So why was your Guest having issues?

David

Hello,

 

Not sure if this is the right place to make this question.

I would like to book an apartment for longterm stay. Although the host made a special offer, the total price I have to pay seems higher. Is the reduction applied after I make the reservation? 

Also, a different price comes up on the apartment's page than on my inbox messages with the host. I'm a little confused here.

 

Thank you!

Marko17
Level 5
Bled, Slovenia

I am AirBnB host for aprox one year. i am also hosting on other booking portals. 

Here are few facts for comparisment from MY POINT OF VIEW:

Other booking portals charge the host for their services at least 15% of the total booking amount (Guest doesn't see that and most of them are not aware of it). That is basicly the classic pricing model. 

AirBnB took this strategy diffrently: the GUEST pays those extra % for AirBnB services. Host around 3%. Also only one unit per listing is "allowed" on AirBnB, which is also very interesting, I am selling one room instead of 12 that I have. This made me, to reduce the rate even more. I take this as a "sacrifice" one out of twelve in a return for more bookings, reveiws, search optimization and superhost status.

What does that mean for me as a host on AirBnB?
I had to reduce my rates on AirBnB at least 15%, so that it is "fair" comparing my listings on other portals. I reduced (smart pricing) even more because I was kind of "forced" in: to be more competitive, to acumulate as much bookings as possible. 

So basicly with this strategy I am not able to motivate the guest to book directly with me, it's not worth of the effort with possible penalties if "cought" and puting at risk potential "superhost" status. 
So with other words, AirBnB managed to reduce "guest stealing" with this feature and basicly the hosts need to lower their rates to be more competitive. So from my point of view is kind of the same (I don't have to pay 15% to AirBnB), but i did reduce my rates... so its more or less the same.

*Example for my listing*
Bungalow Deluxe, 1 night, two persons (low season):

AirBnB rate: 65,00€ +  11,00€ (service fee) = guest pays 76,00eur (city tax included) | my profit: 60,00€

Booking, Expedia rate: 80,00€ + city tax = guest pays 82,54eur | my profit: 68,00€

Book directly rate: 80,00€ - 10% promo code "BOOKOFF10" = guest pays 72,00eur (city tax included) | my profit: 70,00€

🙂

Excellent analysis, @Marko17. One must include all values (as you have) in order to make a final meaningful judgment. Thank you for setting a high standard in this conversation. 🙂