Huge drop in bookings received since late 2024 through the Airbnb platform -any other hosts having a similar experience?

[Veronica-Of-Excel-Proper0]

Hi Everyone, 

Having created my first listing on Airbnb since 2017, I noticed a steep drop in bookings received through this OTA over the past 7 to 8 months.

I'm based in the UK (outside of London) and manage a small business providing short-term rentals in an urban area.

Has anyone else had a similar experience? Is Airbnb giving priority in the algorithms to newer listings?

As a business, Airbnb charges a higher rate commission (18% including VAT). Because my business is not registered for this tax (VAT), it means, it's become an extra charge/cost to operating. Recently, I  had a guest who cancelled a booking on Airbnb (having blocked our calendar for several months), then went to another OTA to book the same property for different dates (at discounted rates per night).

What are hosts recent experience of the quantity of reservations received through Airbnb and the earnings received? Please share as I'd love to know about other people's experiences of the platform. 

With thanks.
Veronica

[Bhumika]

Hi @Veronica-Of-Excel-Proper0 , thanks for sharing your observations with the community! 

Have you received any new bookings since you last posted? 

I am also inviting a few experienced hosts from the UK if they've noticed a similar trend. Hi @Helen3 @Mike-And-Jane0 @Tara0 @Abi010 @Beverley120 @Chamitha0 @Tim3904 @Malek40 @Jane4673 , do you have any suggestions for host @Veronica-Of-Excel-Proper0 ? Thanks in advance for your kind support! 

Regards,

[Veronica-Of-Excel-Proper0]

Hi @Bhumika,

Thank you for your reply to my post. Appreciated!

No new bookings since my post at the start of June. So far, there are just 3 bookings for the rest of this year, all booked before February 2025.

Until last week, there was a 4th booking for next month, but the guest cancelled just before end of the free cancellation period. Very disappointing as the guest had blocked the calendar since late last year.

So far in 2025, I have had 9 bookings (for stays between March and July). This compares with 52 reservations for Jan to June 2024 and 56 reservations for Jan to June 2023.

There are 3 properties listed in 2025, one less than the 4 properties listed in 2024. However, even with 3 properties, the bookings receieved this year is a huge decrease from the previous year(s).

Thank you also for tagging other experienced hosts in the community!

Regards.

[Veronica-Of-Excel-Proper0]

Hi @Tara0 ,

Thank you for your post and sharing your insights as a superhost with 11 years experience.

My registration with Airbnb as a host was in 2017 and the properties managed by my company, Excel Property Partners Ltd, have changed over the years.

Listings have been refreshed over the years, so descriptions and photos have been updated accordingly.

Indeed, not all of the 275 reviews are 5*, but 88 percent of reviews are 5*. Current average is 4.66 of a maximum of 5.

And yes, there is a race to the bottom on prices because of many new serviced accommodation providers in the area. 

My reference to the Airbnb's commission and VAT has to do with the fact that as a business with multiple listings on the Airbnb platform. In the breakdown of guest fees, it shows:  Host service fee (15.0% + VAT)!
Because our company is not VAT registered, it means we are unable to recoup that. The company is below mandatory VAT threshold and not planning to opt for voluntary VAT registration.

Thank you for your sharing your insights and observations.

[Abi010]

Hi  Veronica,  I will say, the bookings has been quite slow this year as well,  but there are few reasons that might be the culprit,  the weather is just warming up,  so people might be delaying their booking ,and also depending on the area,  @Helen3 mentioned she's doing well,  been near the sea side has a lot  of advantages at this time of the year. So @Veronica as you cannot move your property, same as me, we just hope that things will soon pick up

Happy hosting 

[Helen3]

People come to me because of my city location . 

I'm not a seaside location @Abi010 

[Veronica-Of-Excel-Proper0]

Hi @Abi010,

Thank you for your comment and sharing your own experience of bookings this year through Airbnb.

Valid point about changes in patterns of bookings as guests consider their areas they want to stay and the weather.

In the past, more reservations are received around the time of university graduations and a couple of the June festivals in Sheffield. However, I still had unbooked calendars during that time.

Yesterday, I was pleasantly surprised to receive a guest booking for a few days from today. That is most welcome and I'm grateful for the request.

Like you @Abi010 , I am hopeful that the situation will improve soon!

'Happy Hosting' to you too.

[Tara0]

Hi @Veronica-Of-Excel-Proper0 I'm a superhost in Oxford with 11 years' experience (previously in London).

You say you've been hosting since 2017, but your current listings are more recent and it looks like you've branched out as an agent or co-host since Covid?

I've skimmed through your three listings and they all look 'ok' but in the reviews you're not hitting five stars often enough across the board. This is a really competitive business. So, maybe a year ago a competitor started up near you,  and has been offering a better deal and getting bookings you might have got before but you're losing out now? That seems to me the most likely reason for your drop in bookings. If you're acting as an agent then you need to ensure high standards - I check and micro-clean after my cleaner does the basic cleaning. You have to check everything. It's a lot of work!

Also, I have no idea what you mean when you say "As a business, Airbnb charges a higher rate commission (18% including VAT). Because my business is not registered for this tax (VAT), it means, it's become an extra charge/cost to operating."

Yes, Airbnb charges guests a fee (and hosts a fee), but the guest fee charged by Airbnb to guests has ZERO impact on host income/payment. (BTW my hosting is via a limited UK company account, just one listing but it's a business). 

[Helen3]

Hi @Veronica-Of-Excel-Proper0 

I also host outside of London and my listings are doing well.

unfortunately two of your listings have what  Airbnb sees as low ratings and reviews so this means you will show up lower in their rankings . 

this combined with falling demand and over saturated markets  make it harder for you to attract bookings .

did you have previous listings? 

I don't understand your reference to Airbnb charging more for businesses? 

[Veronica-Of-Excel-Proper0]

Hi @Helen3,

Thank you for your reply and feedback.

Yes, I have had previous listings that were made inactive first and then deleted because I no longer host from those properties.

I had wondered about falling demand through Airbnb platform for travel, so it's insightful to read your comment on this.

You mentioned that the low ratings and reviews for two of the listings would have contributed to them not appearing in searches. The third listing is still not appearing in searches and/or being selected by guests.

Is there a feature on Airbnb platform that shares data on appearance on searches for listings? If there is, then that could be helpful in understanding why the third listing has also had a steep drop in bookings received.

The issue of commission paid by my company to Airb for each booking changed a few years ago following the return to 'normal' post covid-19 pandemic. Prior to that, we paid less than 5% on bookings received. Cannot recall if there was a guest fee charged at that time. However, in the breakdown for bookings, Airbnb retains approximately 18 percent of what guests would have paid and remit the remainder to us a few days after the guest would have checkedin.  

In the breakdown, it shows: In the breakdown of guest fees, it shows:  Host service fee (15.0% + VAT).
Because some guests rate 'value for money' as 'low' because of how much they paid to Airbnb, in the checkout message sent to guests it is mentioned that as hosts we do not receive the full amount they paid to Airbnb, as 18 percent of is retained by Airbnb.

And yes, Airbnb operates a commission system that has at least two tiers. A lower rate paid by some listings and a higher rate 15.0 % + VAT paid by listings such as mine.

Is there an option as to hosts are paying a higher commission to Airbnb for bookings received or guests are given the option to pay a fee for the booking? While Airbnb is transparent in the breakdown of fees paid, it is unclear what criteria are used by Airbnb to decide which hosts/listings are charged 15% + VAT (for UK listings) and which are charged a much lower rate.

Thank you for your sharing your insights and observations.

[Helen3]

Sorry just to clarify it's your overall rating across your listings that determines your position in the airbnb rankings .

you can look at something like Airdna  to get an idea of supply and demand for your sort of listings in your location. 

you can look at your performance under hosting tools . 

I pay 3% fee and the guest pays the rest. You will only pay the whole fee if you have either chosen to do so or you use a channel manager. In which case you increase the guest rate to cover.