New Airbnb Simplified Pricing

[Yiwei3]

Hi hosts, I just saw that Airbnb is giving people in the US an option to pick simplified pricing where you pay 15% and the guests pay 0.  They are saying it comes with increased bookings.  Has anyone had that experience?  From what I see, the nightly rates are higher but there's nowhere in search that explains there is no service fee.

[Maria1534]

It's terrible because when people run a search, listings with the old structure will show up as having a lower price than those with simplified pricing so people will go with them instead, even though in the end they end up paying more in the end. I'm trying to turn mine off because it has really hurt me, but I cannot find the option anywhere (and no, I do not use a third party application). My advice is, don't do it!

[Alison890]

Just want to add my feedback on this. In summary... If you go with the Simplified Pricing option, your host fees INCREASE from 3% to 15%. 

INITIALLY this program was rolled out as an option for hosts to 'cover guest fees' aka take on the cost that Airbnb charges guests when they book. It was an easy no-brainer to say no. I definitely wasn't interested in my costs increasing. 

Since then, Airbnb REBRANDED this to 'simplified' pricing. I didn't pay close enough attention and saw the airbnb example of... 'your earnings stay the same, but the guest sees a different rate per night'. however, it is up to you as the host to increase your prices in order to offset the increase in host fees. 

There has to be some tax benefit to Airbnb by charging the hosts the full 15%. As a guest, sure it would be nice to have one less line item to look at during check out but at what cost to the host. Airbnb has intentionally made this pricing option opaque. 

[Carol-and-Javier0]

Hello! I switched for simplified pricing and my bookings have increased, but only because I constantly publish it on my Instagram page. I contacted Airbnb support to verify why my listing don't have the banner saying that we will take care of the fees as hosts; I've seen another listings with this banner and ABNB support only told me that it was an experiment and that they will let me know after november. 

[Mike-And-Jane0]

@Dave1074 how do you work out that the guest will pay 15% more?

[Dave1074]

Hi Mike and Jane,

The typical guest fee is 14.2%, not 15.  Then a host fee of 3%.  This will help: 
https://www.airbnb.com/d/commissione-semplificata-guida

A host who uses simplified pricing must charge more or make less, as Air charges the host 15% not 3%. So, if your local competition is not force to use it, their listed prices during a Search are less than yours. 

All recommendations from Air are bad for hosts.  Simplified pricing only makes sense if everyone has to use it. 

[Dave1074]

Anything that Airbnb recommends will be BAD FOR YOU.  Bet on it, especially when your price will be 15% HIGHER THAN your competition where the guest pays for it. 

[Margaret444]

AGREE.  The overall payment the guest has to make is the same at the end of the day, but in searches, especially using the map where the nightly rate is shown, your property suddenly seems to be 15% higher than comparable properties that are not using "simplified pricing".  So your property gets clicked on less and chosen less.  I immediately saw a decline in my booking rates after choosing this option, and after two  months, I have turned it back off.

[Maria1534]

Same thing happened to me and now I cannot find the option to turn it back off. The way they organize the search results makes no sense. It hurts us hosts that want to be transparent with our prices.

[Jazmin25]

How did you turn it off?  I cannot find that option

[J-Renato0]

Most of the STR platform do not charge the guest directly. They use the system that Airbnb call simplified pricing.

[Soontaree0]

After implementing simplify pricing bookings are down 25%. Customer service says this is a test project to be reevaluated November. I was told at this time it’s permanent there is no way to opt out.
I intended to implement it on one listing although when I implemented that listing all of my listings automatically changed to the simplified pricing. When I signed up I did not see a disclosure that it would be permanent without a way to opt out. I also noticed Airbnb advertised Enhanced listing as a pro;  I have seen my listing is buried, does not appear to be enhanced. I don’t think the guests understand and I now appear less competitive. The listing does not reflect the host Absorbing the fees.

[Maria1534]

The same thing is happening to me. I had to drastically reduce my prices to make my listings appear more competitive in the search results. I'm trying to turn it off but cannot find the option. I really hope they don't force me to stick with it. It's greatly hurt my bottom line. 😭

[Susan1188]

Help!  I wish I saw your post before I stupidly clicked on "simplified pricing" for all my listings!  You are right it seems there is no parameter button to turn it off!
Now on the phone with CS to gry to get it turned off!

[Margaret444]

You need to go into your general "Account" settings, select "Service Fee" and then change back to "Split Fee Pricing".

And if you are using third party software to manage your listings, "Simplified pricing" (host pays all the fees) is your only option.

[Maria1534]

I've searched everywhere and I cannot find how to turn it off. My profits are way down since I turned this on. 😭 I've had to significantly lower my rates to appear competitive in the search results in comparison to those that use the old method. The way Airbnb organizes the search results makes no sense. They are penalizing us hosts that wanted to be transparent. They need to fix this, but as most things when it comes to Airbnb, they won't. I've been a super host for 9 years and I become more and more disillusioned every day with the way they've treated me.

[Michelle826]

trying to figure out how to turn off the simplified pricing . . . the reps don't seem to know about it.

[Soontaree0]

Was just told there is no way to opt out at this time it is permanent. That may change in the future although I doubt it.

[Maria1534]

😭This is insane. My profits have dropped significantly because in the search results, my listings appear to have a higher nightly rate than the ones that use the old method, even though in the end, the guests end up paying more when they book the other places.

[Debra300]

@Yiwei3,

Airbnb just converted my listings to simplified pricing last week.  The possible increase in bookings could arise if guests choose a listing that doesn't charge them a service directly vs. one that does.  As a host, you will need to raise your nightly rate by at least 12% to make up for the additional cost.  In the end, the total reservation cost should be about the same to the guest.

[Maria1534]

The problem is that when people run a search, your listing will show higher nightly rates than those that use the old method, even though in the end, guests will end up paying more when they book the other places. I've had to significantly reduce my nightly prices just to "appear" competitive. This is insane. I wanted to do something good and be transparent with my guests, but it's been terrible for my bottom line. And apparently now they are not letting you turn this off. They need to switch everyone to simplified pricing if they want to be fair. I hate Airbnb. I've had so many poor experiences with them in the last few months that I am moving my 9 listings to other platforms.