15% Service Fee for Hosts.....or How Airbnb are effectivly pricing themselves out of the market...

Landhaus-Osborne0
Level 5
Obertraun, Austria

15% Service Fee for Hosts.....or How Airbnb are effectivly pricing themselves out of the market...

Just received an email saying that rather than guests paying a service fee (between 12-16% as I understand) us hosts will now (from 07.12) have to pay the whole 15% service fee.

 

Generally I do not have an issue with this. Airbnb must earn money some how and it is fairer and more transparent for guests. However at 15% (!!!) Airbnb are just pricing themselves out of the market.

Obviously as we also pay VAT, Income Tax etc. etc. on stays us hosts can't take another hit of 15%. Therefore we will simply increase our Airbnb prices by 15%. This is more transparent for guests and at the end of the day the price they pay would probably be the same that they would have paid if they were paying the service fee as now.

But at 15% Airbnb will now be more expensive that Booking.com.

The only good thing is that it will probably make more guests book direct when they see our direct prices, Booking.com +12% and now Airbnb +15%

 

We would rather get Airbnb reservations over Booking.com, so it is shame that they have made their fees so high.

2 Replies 2
Emiel1
Level 10
Leeuwarden, The Netherlands

@Landhaus-Osborne0 

If you are transferred to the "host-only" fee then indeed you need to increase your prices with the 15%, as the fee is now included in the price,instead of charged to the guest on top of it by Airbnb.

 

The disadvantage for guests is they pay more when booking a "long term stay" (28 nights and more), as the original "split fee" plan charges aproxx 12% Guest Service Fee for long term stays.

https://www.airbnb.com/help/article/1857/what-are-airbnb-service-fees

Mike-And-Jane0
Level 10
England, United Kingdom

@Landhaus-Osborne0 Are you a software connected host? Apparently it is only these who are being moved to the host paying the service fee.

I don't understand what the problem is though. Yes you will increase your prices but the guest will pay the same so Airbnb will be no less competitive than it is today. With the increased price you, as the host will also receive the same.