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
Emiel1
Level 10
Leeuwarden, The Netherlands

removed by me

Oomesh-Kumarsingh0
Level 10
Pamplemousses, Mauritius

Hi Sandy i hope this will help you, 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 the guest can save money when booking large reservations. The host service fee is 3% excluding bank fees.

Let me be more specific.  

(1)  How do I calculate the guest service fee and the percentage that fee represents?  

(2) How do I calculate the host service fee and the percentage that fee represents?

(3) Are the service fees (host and guest) prorated by day across the entire reservation?  If so, what happens if someone checks out early?

 

My guests are business travelers who must rent my apartment for a minimum of 30 nights. Most stay 2 - 3 months while on a business assignment in the Atlanta area.

 

This issue came up because my apartment was recommended by a previous guest who stayed 2-1/2 months last summer (2016).  The guest who was given the recommendation for my apartment wants to stay for 2-1/2 months this summer (2017).  The 2016 guest paid $1737* per month; the 2017 guest was quoted $1903 per month.  That is a difference of $166 per month.

*$1737 is the amount deposited into my checking account per month by Airbnb for the 2016 guest.  How much was the 2016 guest actually invoiced?

 

The prospective guest is concerned, as well she should be.  I have not changed my rate; it is still $1650 per month, all inclusive, plus a one-time cleaning fee of $120 for the entire stay.  So, did Airbnb change their guest and host service fees?

 

I have told the prospective guest that she will not pay more than her friend who stayed in my apartment last summer (2016).  But, I am at a loss to know what rate to quote her since I see only what is deposited into my checking account by Airbnb. How much is Airbnb actually charging my guest(s)?  What are the detailed charges and how can I see them?

 

Now I am looking at payments for all my guests and I believe there were many who were actually overcharged.  

 

 

If AirBnB paid you $1737 then obviously the guest paid more and $1903 certainly looks like the sort of number I would expect. About 10% fee.

 

When a guest wishes to book then the total price will come up including fees and whatever charges apply.

 

Avoid getting into a gross figure discussion, you control your charges, you do not control AirBnB fees.

David

Hi Sandy - I don't think Airbnb is only charging 6-12% on service fees.

 

I'm trying to book a place right now for 2 nights ($106) + cleaning fee ($25).

 

Airbnb is charging me an extra ($38) -  Service fee ($20) + Occupancy taxes of ($18).

 

They are actually charging me 19% on service fees.. which makes NO SENSE at all.

 

If airbnb don't reconsider these outrageous service fees, people will start going around it and paying hosts directly.

 

 

 

 

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. I'm going to start looking at other methods.

 

So Sad AirBnB 

Agree with you.  It's not nearly transparent enough.  I don't know if they're charging my guest 6% or 16% !!  I'm dealing with fairly large numbers ($5000 USD for 40 nights in my 3 br villa): I want to make a special offer for exactly $5K to her.... but..... I could undercharge leaving me out of pocket or overcharge so exceeding her budget, and thus lose the booking....depending on what % of service fee AirbnB decides to charge: it's a gamble.  

@Glenys-and-Henry0 if it is available in Singapore you could move to host only fee in your account settings. Then when you send a special offer you will know exactly what the guest will pay.

Hi Lachlan, 

 

I've just made a special offer to guests and have discovered the same... AirBnB 'disclosed' to me using the Special Offer calculator what the guests would be paying, but then charged the guests EXTRA once I sent the special offer through... this is scandalous and duplicitous... is anyone else finding this? 

as a guest, I feel the fees are based on the cleaning fee; the higher the cleaning fee, the higher the service fees. One place had a $50 cleaning fee and the service fee was $20; another with a $12 cleaning fee had $7 service fee. Same room price.

@Collins8  The Airbnb fees are based on a few things, but they don't make that information public. 

They charge service fees on both the room rate and the cleaning fee, so yes, a higher cleaning fee will result in a higher service fee charge in total, but doesn't affect the % of service fee charged, if that makes sense.

 

Some types of listings carry a higher service fee percentage (which can vary from about 12-20%) and different areas of a country or the world can have different % service fees.

Mark442
Level 3
Kirribilli, Australia

Airbnb hosts are blind sheep. If a guest is willing to pay your price plus a service fee of 15%, and then you also lose another 3%, it is quite simple. AirBNB is stealing 18% from you for the full price a guest would be willing to pay!!! This is a SCAM!!!

@Mark442

 

Not compulsory to use ABB, book direct and avoid all the ABB fees!

David
Chris890
Level 1
Gold Coast, Australia

I just had a booking where airbnb wants to charge $80 fee on $300... this is over 25%. I had no idea the fees were so outragous.