Airbnb is undoubtedly the most successful vacation rental platform in recent years. The result of ever-growing demand, Airbnb’s unparalleled success is largely due to the facility with which anyone can become a host on the platform. However, as good and successful as the platform is for users, there are still some parts that are not so good, Airbnb’s scary fees.
We already know that one of the most common questions from homeowners starting out on the platform is what fees Airbnb takes. A key question that needs to be studied before launching, in order to build a solid cost structure.
Precisely for this reason, in this article we will meticulously analyse the cost of listing a property on Airbnb and what their service fees are.
What are Airbnb fees?
But then, what are Airbnb service fees?
Airbnb service fees are a small percentage that the platform charges to the hosts and guests for each booking made on the portal.
These fees are intended, according to Airbnb, “to help the Airbnb platform function properly and to cover the cost of services such as the Customer Service team (available 24 hours a day), we charge a fee when a booking is confirmed“.
It is also important to understand that the platform’s commissions are not fixed, the amount of commissions to be paid may vary according to several aspects, which we list below:
- Host category/Airbnb type; Airbnb Luxe and Airbnb Plus, are subject to different fees.
- The location of the property; for example, in China, the fee increases to 10%.
- Cancellation policies; If your cancellation policy is strict you may pay an additional 2% fee.
There are currently two options available for you to choose from when deciding how you want Airbnb to collect its service fees. Read on to find out about the two options.
What are the different Airbnb fees?
The two options you will have when paying commissions are the shared commission and the exclusive commission for hosts.
1. Shared fees
Shared fees, currently the most common, split the fee between the host and the guest:
Host’s fee:
In the case of choosing the shared fee, the percentage to be paid by the host is 3% of the total amount of the booking. As mentioned above, a higher percentage can be applied in case of:
-Hosts on Airbnb Plus
-Accommodation hosts advertising housing in Italy
-Hosts with very strict cancellation policies.
Guest fee:
If shared fee is used, the guest will also have to pay a part of the commission. As a general rule, the commission paid by guests varies between 5% and 15% as a service fee and on the total amount of the booking.
2. Host-only fees
With the host-only fee format, the entire fee is subtracted from the host’s fee.
As a general rule, the commission percentage for hosts is between 14% and 16%. Please note that these percentages may vary depending on the factors mentioned above (Airbnb Plus, strict cancellation policies, etc.), and that commissions for Airbnb Luxe accommodations are handled separately.
This commission will be mandatory for all traditional establishments, such as hotels, serviced flats, and for hosts connected with software.
3. Other fees
Although we have already introduced you to the two possible fee structures set by Airbnb, it is worth remembering that you will need to consider other external costs, such as tourist tax, vacation rental taxes and fees on the new Airbnb Experiences feature.
The commissions for Airbnb Experiences will be paid exclusively by the host, and the amount payable will be 20% (calculated on the total price of the activity).
Chekin automatically calculates all tourist taxes in any country or region of the world. See our solution.
How to view your service fees on Airbnb
If you want to see the breakdown of your Airbnb service fee, it’s easy. All you need to do is follow these 4 steps:
- Go to the transaction history of your Airbnb account.
- Search for the booking, and a code will appear underneath it. Just click on it.
- Search for payment, within the booking
- Search for the Airbnb service fee, and that’s it!
How does Airbnb charge the service fee?
It’s very easy, and you don’t have to do anything. Once the guest’s stay is over, Airbnb will release the payment for the booking. It will then collect everything due, minus the service fee, which Airbnb will automatically deduct.
Read this article if you are interested in learning how to reduce OTA commissions on your establishment.
Conclusion
Understanding Airbnb and its features is an essential step to becoming a successful host on the platform. One of the most important steps is to understand how commissions work in order to have your cost structure well defined.
Keeping accurate track of your expenses/costs is paramount in every business and will help you to effectively reinvest your profits in improving your offer and your guests’ experience.
Find out how much it costs to rent through Airbnb, Booking, Vrbo, Expedia, and HotelBeds. We compare them so you can choose the best one for you.
