Any vacation rental owner knows very well that being present on as many OTAs as possible plays a fundamental role in increasing visibility and reservations. Airbnb is one of the most used platforms for this purpose, but how much does Airbnb charge the owner? Read the article to find out about what is the Airbnb service fee, about the Airbnb host service fee and the Airbnb guest service fee.
Airbnb service fee percentage
Besides the undisputed benefits of placing vacation rentals on Airbnb, hosts must take into account the costs arising from use of this booking portal.
In fact, the Airbnb service fee contributes to the owners’ costs, beyond the fixed expenses such as regional taxes, cleaning fees and maintenance costs and the salary due to co-hosts and the rest of the staff collaborating to the management of the vacation rental.
The Airbnb service fee percentage varies. Firstly, it depends on the model of commission the owner opts for and on other factors, such as the type of property, its location, the cancellation policy chosen by the host.
Generally speaking, the Airbnb service fee percentage can reach up to 25% in total (split between host and guest).
What is the Airbnb service fee?
The booking portal provides two models for fees:
- Airbnb shared-fee;
- Airbnb host service fee (later called simplified pricing).
Airbnb shared fee
What is Airbnb split fee? The shared-fee model is the most used by vacation rental owners, and consists in splitting the service costs between host and guests.
Is Airbnb 15% or 3%?
If you are wondering whether is Airbnb 15% or 3%, with this type of fee, Airbnb subtracts a 3% from the owner’s payment and charges guests a commission that can reach up to 14.2% of the subtotal value of each booking. This charge is visible and clearly communicated to guests upon check-out.
Airbnb host service fee
Airbnb host service fee, as the name suggests, is deducted from the owner, with a percentage that is around 14% – 16%. These values can reach up to 20% and vary, for example, if the host applies the Super Strict cancellation policy. In fact, in this case an additional tax of 2% is added.
This model for Airbnb host service fee is becoming more popular with respect to shared fees, because it’s considered by many hosts easier and more transparent towards guests, who don’t see additional costs applied when booking.
Which hosts prefer to opt for a service fee that is not shared? All those Airbnb listing owners who charge additional costs for the vacation rental cleaning fees, taxes or VAT. In fact, the host service fee allows, for example, to fit in with additional costs by slightly increasing the basic fee, without harassing guests with too high additional costs.
Airbnb simplified pricing
Talking about the Airbnb host service fee, the US portal introduced a new policy in 2020 for all vacation rental owners connected through a third-party management software (Channel Manager): simplified pricing. This type of fee has become compulsory worldwide for all vacation rental owners connected through a software provider, with the exception of the US, Canada, Mexico, Uruguay, Bahamas, Argentina and Taiwan.
This commission model charges 15% of the total to the host only.
What are the advantages of simplified pricing?
As stated in the dedicated guide on Airbnb portal, the advantage of simplified pricing is allowing listing owners to set up a more accurate pricing strategy by modifying prices to keep the price at checkout unaltered for guests with respect to the variation in commission costs. The advice, naturally, is to keep basic fees competitive (in this regard we recommend you our guide on how to do the Revenue Management in your accommodation facility).
Airbnb affirms that with simplified pricing, hosts witnessed an increase in bookings. The reason behind this positive trend is related to guests considering this model as more transparent, since they don’t perceive the additional costs at check-out.
Airbnb service fees for experiences
In addition to the aforementioned Airbnb commission models, there’s another type of charge: Airbnb service fees for experiences.
Many hosts include experiences within the booking of the accommodation, which represent an excellent strategy to enrich guests’ stay experience and increase the possibility of receiving positive reviews and leading guests to book again.
The portal charges hosts a commission for each experience, which corresponds to the 20% based on the total experience. In this case as well, the cost is charged to the host upon payment.
Who does not get the guest service fee on Airbnb?
Let’s immediately clarify that it’s not possible to sell your accommodation facility on Airbnb without paying the due fees to the portal, and this rule applies also to all Airbnb alternatives.
In which case is it possible to avoid paying the Airbnb service fee?
According to the cancellation policy chosen by the host, if a guest cancels the booking the host doesn’t have to pay owners’ service fees.
Frequently asked questions
The Airbnb service fee percentage varies. Firstly, it depends on the model of commission the owner opts for and on other factors, such as the type of property, its location, the cancellation policy chosen by the host. Generally speaking, the Airbnb service fee percentage can reach up to 25% in total (split between host and guest).
- Airbnb shared-fee;
- Airbnb host service fee;
- Simplified pricing
Airbnb host service fee, as the name suggests, is deducted from the owner, with a percentage that is around 14% – 16%. These values can reach up to 20% and vary, for example, if the host applies the Super Strict cancellation policy. In fact, in this case an additional tax of 2% is added.
With this type of fee, Airbnb subtracts a 3% from the owner’s payment and charges guests a commission that can reach up to 14.2% of the subtotal value of each booking. This charge is visible and clearly communicated to guests upon check-out.
This Airbnb host service fee called simplified pricing, charges 15% of the total to the host only.
Airbnb charges guests a commission that can reach up to 14.2% of the subtotal value of each booking.