Are Airbnb being a little bit greedy charging the guest such a high service fee?

[Joey-And-David0]

We are great supporters of Airbnb and tell people about them whenever possible - our experience hosting with them for the past couple of years has always been fantastic. Recently we have definitely noticed a drop in bookings in comparison to another site where we advertise - the one main difference is the very high service fee that Airbnb charges the guest. Now that Airbnb has become so established and successful isn't it time that they lowered their service fee for guests? (This is my first post in the Community Centre & apologies for putting this in wrong section)

[Kelly3]

@Joey-And-David0

Airbnb charge 3% for hosts, and 6~ 12% for travelers - 15% is a common commision fee in this kind of booking business.

So Airbnb doesn't charge higher service fee.

One possibility is that - when the guests see the service fee on top of the accomodation cost, due to some psycological reasons, they would think it is more expensive than other booking sites? 

Other booking sites usually charge hosts 15%, so the price listed is what they pay unlike Airbnb.

[Joey-And-David0]

Hi Kelly

Thank you for your reply. On the other site where we advertise we are also charged 3% but there is no service fee for the guest so it means that guests pay £100 less. We would rather guests booked through Airbnb as it is a much preferred platform and hope that in the future their service fee is lowered.

[Kelly3]

What is this booking site?

All the major booking sites that I know charge around 15% as commision.

[Anonymous]

@Kelly3, I don't want to be involved in a controversy but I think @Joey-And-David0 are indeed partly right.

In my own reporting schedule I use to report both guests and hosts fees. Since 6/8 month, for my listings, I notice many changes about fees: on Airbnb, from now on, none of my guests payed less than 11% airbnb fees ( 11% for more than 2 weeks stay, 12% for the vast majority), if you add the 3% exchange charges +3% host fees + VAT, I'm about 20%. To deal with the competition other booking sites have reduced fees for hosts (at least for usual users) and are fees free for guests. Guests pay less and it's the same for me. Personally % of Airbnb guests falls from 80% to 50% since 6 month and Airbnb guests are constantly asking for discount. On other sites, as they can pay by installments this is rarely done.

Regards

[Kelly3]

@Anonymous

I wasn't trying to cause any controversy, I really don't know many other booking sites, ones I know are pretty major ones, and as little as I know they have similar commision - and if some of them have lower commision, I am really interested to know more about them!

At this point, I only use Airbnb as it doesn't require me to have 'business registration number', but I am getting one soon - other booking sites are definitely something to consider.

Thanks.

[Anonymous]

@Kelly, Sorry for the misunderstanding, it's me who don't want to cause any controversy 🙂

[Anonymous]

@Kelly3, don't want to advertise here about competitor but the 2nd worldwide booking site (up to 1million listings) is charging less in France actually. I verify all the last and future bookings I have with this site for 2016 and they charge only 10% fees (7% booking fees+3% payment transaction). And comissions are only paid by hosts so this gave a psychological advantage for using this site instead of Airbnb.

At the same time, this process makes people use this site even to repeat while in Airbnb people always try to have a direct deal with the hosts when they want to repeat as they get your adress and phone number from their first booking. The main difference with airbnb is you have more information about guests in order to choose if you want to hosts them or not.

Airbnb strategy is charging guests to get more listings. Other sites strategy is to charge hosts to have more guests. Cost of airbnb advertising campaigns just seems to be higher.

[Branka-and-Silvia0]

@Joey-And-David0 @Anonymous

Please tell me what other sites do you use ?

Thank you 🙂

[Joey-And-David0]

We use Holiday Lettings but we do have to pay an annual subscription (about £500) - but this means that our guests don't pay a service fee when they book  🙂

[Helen65]

I have found that airbnb are adding around 15% to my bookings for guests. Yes my impression is they are becoming a little greedy. They also need to be more transparent about how they calculate their service fees for guests.

[Melanie115]

A LITTLE greedy????? A lot greedy. Not just with this but also with their policy of not letting us charge for children under two years of age. Also, their so-called 'smart pricing.' They lower fees in order to get more bookings so that they make more money, not us.

[Gaye0]

Would not want to smart price.  Any idea how to increase nightly rate host receiving once already set up on account please. can that be changed at all as it appeared as though 35% commission to airbnb from what guest paid and what I received in total. i thibnk i set up incorrectly at the start the price.

[Luc27]

Actually After Airbnb taxes and fees its more like 20% or more . they are climbing in greed duh 

[Marcus0]

At the end of the day Airbnb is a business and needs to both cover costs and meet the returns for their investors.  15% and under commissions would hardly fund a start up in this business.  Cheaper agencies are out there, have less exposure and traffic.  Airbnb does not want to become this.