AirBnB is now offering “Simplified Pricing”. Basically, host raises the nightly prices by 14.2%, and absorbs a fee of 15%. No AirBnB service fee is applied to the guest, and the host’s 3% fee paid to AirBnB goes away. The advertised room price is what the guest pays. (Plus any other fees such as cleaning, etc). The host’s net payout stays the same. I think this is worth considering, since guests probably don’t like additional “fees”. Comments / Thoughts?
It’s easier for me to use the old way, it has been working fine and I can see how much I want to be paid right there on the calendar, except - the 3 %. I don’t think I will be changing my pricing structure to all included, unless we have no choice as in some instances it is now required. I also charge a cleaning fee.
Except that not everyone pays attention to the final price and I’m hesitant to do this because unless everyone does it, I won’t look competitive.
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I can see some insecure hosts lowering their prices to compete in the race to the bottom. I hope i† becomes mandatory so it is actually a level playing field. With some doing it one way and some the other it will be a mess.
RR
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I agree. It’s typical of Airbnb to make it mandatory for some hosts and not others, to give some hosts the choice and not others and yes, it would level the “per night” pricing playing field.
I suspect it will become the norm, at some point.
JF
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We recently had a discussion on this only a few weeks ago I believe.
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Basically it is a BAD thing, unless everyone is on it. And that IS the case in certain countries. It is also the case for “software connected hosts”.
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However, if you are “on it” and your area is not - then you LOOK MORE EXPENSIVE when guests do a search = bad for you.
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Rule #1 - ANY SUGGESTION BY AIR will NOT IN YOUR INTEREST.
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The overall price stays the same you just increase your charge to cover the fee so you will remain competitive
Yes but not everyone gets how airbnb works. Until everyone is doing it, I’m not going to.
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What Airbnb never explained, as far as I know, was if a host went for this, the new price with the fees would be seen as income for tax purposes.
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Guests are looking at the nightly rate on the map. We know that they are not good at looking at the total price that is on the scrollling list because if they were looking at the total prices then there wouldn’t be a pesistent rumor that Airbnb has hidden fees (because the total price includes the fees).
There is one listing in my greater metropolitan area that has gone with the simplified pricing. Initially, his price did indeed appear to be much higher than other listings; however, he has been lowering it, I assume in an attempt to not look outlandishly expensive. Now his price is the same as it was last year before he took on the simplified pricing and yet he is stil paying the 15% (because the service fee says, $0).
Ultimately he is making 15% less with simplified pricing. I don’t understand why he doesn’t just switch back to the regular pricing. Is it not possible to switch back once simplified pricing is chosen?
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This is what every host needs to consider when switching. If your listing’s occupancy drops, it probably means your listing’s pricing appears more expensive than other listings, even though it’s not. Airbnb has two main jobs: marketing your listing and payment processing. If switching to simplified pricing kills your occupancy, then they are failing at the marketing part.
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Maybe he can’t.
20202020
JF
In the UK guests see the total price however they searcg
We don’t have taxes here. As I said they said guests see the total price including all fees.
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I do not like it because the guests don’t see the breakdown of their price. For large homes like ours, the 15% fee is hundreds of dollars. The guest should have the right to see what they pay to me and what they pay to AirBnB, and comparison shop between booking platforms.
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There’s only one way to search. It is the same here. But guests just don’t read it.