What You Should Know About Host-only Service Fee of Airbnb?

2 years ago

Gretel

3 minutes

Airbnb moves professional hosts to the host-only fee structure, which is also known as Simplified Pricing. And all Hosts with API connections will be enrolled in to Host Only Fee and will not be able to opt-out.

Split-fee (Before)

The host pays 3% of the total payout, and guests are charged a Service Fee that is under 14.2% of the booking subtotal.

Host-only fee (After)

There will be no service fee visible to the guest, and the entire fee is deducted from the Host payout. It’s typically 14–16%. (unless most of their listings are in the USA, Canada, the Bahamas, Mexico, Argentina, Taiwan, or Uruguay).

Why is Airbnb making this change?

By implementing the host-only fee, Airbnb guests will no longer be surprised by an additional fee added to their final charge at checkout. Hosts have more control over the prices they can set for guest bookings, and guests can see these final prices upfront without getting a surprise when they need to pay.

How Will the Host-Only Service Fee Affect My Earnings?

If you adjust your pricing strategy accordingly, your earnings will not be affected.

And with the increase of your listings’ popularity due to no extra fee for guests, your earnings will even increase in the long run.

For example, when raise your rates and cleaning fee by 15%. That will earn you a bit more, while the guest pays the same amount.

What Are the Advantages of Host-Only Fee?

Here are some reasons why the Host-Only Fee can enhance your listing’s success:

It gives hosts more control over the final prices that guests pay. You set what you want guests to pay, and no additional guest fee is added on top. Airbnb highlights the fact that there’s no service fee for guests, which makes it more attractive for booking.
For your guests, it means a better experience – they book more often when there is no guest fee. This leads to a higher occupancy rate and, subsequently, to SuperHost status.
If you manage properties on Booking.com and other platforms, they use the same simplified structure of service fees. It means that you can have the same pricing strategy for all your listings.

As a powerful tool, Hostex offers you full control over pricing via its calendars. You can change nightly prices, minimum nights’ stay value, and availability on Hostex.io.

Related questions:

How to Change Prices via Hostex?