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
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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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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
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@Helsi Total including AirBnB fees and taxes???
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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Hmmm… I find that most guests don’t care.
This is the accommodation → this is the price.
They like it or they don’t. They book it or they don’t.
They could care less how much of that is going to Airbnb and how much is to the host. You might care about that, but they don’t.
Also, the “simplified” pricing is the way that other platforms work. So it’s easier to maintain similar prices across platforms.
I don’t understand the “fury and outrage” over this. I’ve been using “simplified” for years and I actually have slightly higher profit from it.
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I think guests who would like to book again in the future would be interested in how much of what they paid was Airbnb service fees, that they wouldn’t have to pay if they made a direct booking with the host the next time.
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Price is the same. Guest pays the same. Hosts get a few cents more profit though.