The last time we hosted an Airbnb guest was July last year, and since then we haven’t had a sniff from them, other than a few enquiries about LTR which we declined.
Fast forward to last week and within the space of two days we had two IB’s and a RTB. We decided the RTB wasn’t a good fit, but both IB’s are communicators and unless something drastic happens, I’m sure they’ll both go ahead.
We moved over to the host paid service charge last year, it’s mandatory for software connected hosts in Spain, and many other countries I’m sure. Instead of 3% commission to the host and a variable commission to the guest (typically 12-17% I believe), we pay a 15% commission and there are no fees to the guest.
In principle, for us, it’s a good idea. It makes pricing easier as it’s the same as BDC’s base commission, although there is an additional 1.09% payment charge with BDC, so essentially our gross commission with BDC is 16.09%.
What I hadn’t realised (well, forgotten more like) was that Airbnb charge VAT on top of their commission, which in our case means instead of taking 15%, they actually take 18%. Bastards.
Every other OTA take their cut with VAT included. I’ve just checked BDC and Vrbo to make sure.
I’m now wondering if Airbnb will roll out the host only service charge to the rest of their host base, as it would make sense (from their perspective) to have all hosts on the same financial arrangement.
Incidentally, Vrbo are seriously considering moving over to host only service charges for those that are on the “pay per booking” plan. We’ve taken part in two surveys recently gauging hosts opinion to this move.
Anyway, as a result of this, I simply raised our Airbnb prices by 3%.