Airbnb hosts pay more, travelers pay less

Airbnb hosts will now pay the platform a 15% commission instead of the current 3%. Customers, in turn, will no longer pay the service charge, paying only for accommodation.

As of December 7, the platform will no longer charge a service fee to customers, but these fees will pass through to owners, who will now pay a 15% fee. migration only affects web hosts connected via third party software, not all professional web hosts. This decision is not well received by hosts, who admit to raising accommodation prices accordingly.

“On December 7, we announced the launch of the new commission structure for all of our business hosts in Europe,” reads the email Airbnb sent on October 19, according to ECO. So, effective today, “all business host accounts will be updated to the new 15% commission structure,” Airbnb added.

In the same email, the platform explains that this increase will allow owners to have “100% control over the final price for the traveler (without any additional service charges added by Airbnb) and to be more competitive on the market”. This is because while the costs for the hosts increase, the costs for the guests are reduced and they only pay the value of the accommodation.

Currently, an owner pays a fee which varies between 3% and 5%, for each reservation made in their accommodation, while the guest pays for the stay as well as a service charge, which varies between 15% and 20%. With this change, the costs incurred by the customer are now passed on to the owners. The same is already happening with Booking.com, which charges a 15% fee to owners, without charging additional fees to guests.

“The pilot experiences in European countries where we have implemented this change have shown a significant increase in bookings. By removing customer service charges, hosts can manage the final price that potential customers pay. Hosts always set their prices per night. Some hosts choose to increase their prices to reflect the rate change in order to maintain the same income. These hosts are less likely to see bookings increase. Other hosts are finding it easier to keep their prices competitive and are seeing an increase in bookings, ”an official Airbnb source told ECO.

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