Airbnb Fees For Hosts: What Percentage Does Airbnb Take?

Airbnb is a popular format that was first founded in 2008 and is now worth in 2022 a significant 1.51 billion. Since restrictions were lifted, the rise in bookings has dramatically increased and is way above pre-pandemic levels. These types of accommodation are popular and a lot of people are choosing these types of properties rather than staying in a hotel room. This is due to the fact guests have plenty of space to stay in comparison to a hotel room. They also get extra amenities such as a kitchen area and a large bathroom. It has a more homely stay compared to a hotel room. Additionally, Airbnb offers guests a reasonable rate which is often more affordable, especially if they are staying for a long period. A lot of the accommodation on Airbnb can be booked for up to a month and in some cases the longer you stay, the bigger discount you will receive.

As well as being a great option now for guests looking for accommodation, individuals and companies are also going down the Airbnb route. It’s a great way to make extra cash on a second property or a holiday home. You can even rent out your own home if you are planning on living somewhere else a large proportion of the time. Of course, there are many things to consider if you are going to rent out your property with Airbnb. One of the main things you need to know is the Airbnb fees for the host. After all, you will need to pay the platform as they are helping you to receive that important booking. So you need to take this into account when working out your overall profit. Here is your guide on Airbnb fees for hosts.

 

How much does Airbnb charge hosts?

The first thing we need to explain is how much exactly you have to pay to Airbnb. When you rent out your property on Airbnb, you will pay 3% fee of the booking to the site. This is the subtotal which includes the cleaning fee and additional guest fee. Known as a service fee, guests tend to pay part of the total (approx 14%) as a service fee which helps you to cover the charge to Airbnb out of your profits. This subtotal does not include any Airbnb fees and taxes.

 

Why does Airbnb take this service fee?

As well as ultimately making money from the platform, there is a number of ways the service works to help its customers. For starters, the service fees keep Airbnb running smoothly and timely. As a company, Airbnb aims to support their customers and this fee ensures customer support is offered on a 24/7 basis so that if any problems occur, they can help the customers immediately. It also goes towards the marketing of the company and its listed properties. It also goes towards helping hosts to place their property on the site effectively with accurate tools and it also offers protection for your rental.

 

Is it a fixed fee or can it change higher or lower depending on circumstances?

As discussed above, most Airbnb owners decide to split the fee with the guests. This means they come away with the most profit when they make a booking through the site. In this instance, guests will pay 14.2% of the price of the property while 3% is deducted by the Airbnb owners. However, the percentage which stands at a flat fee of 3% would increase if you decided to pay the service fees just as the host. Of course, there are both positives and negatives to doing this.

A lot of guests will prefer not having to pay any additional fee and this could lead to extra bookings and even repeat custom if it’s a host-only fee. After all, if they are already paying a large cleaning fee amongst other costs, they will not appreciate the service fee. So you could end up with regular customers who return to you due to lack of service fee. Also, if you don’t charge guests, the accommodation will come up as cheaper which will also be a pull for guests. But if you do go down this route, you will have to pay the fee of 14% and it could be up to 20%. Also, if you are quite strict with your cancellation policy, you could be looking at an additional 2% on top for host-only service fees. This can change the ultimate service fee you will be charged.

Additionally, the fees can also change depending on what type of host you are on Airbnb. For example, if you are renting out your property on Airbnb Luxe or Airbnb Plus, the fees will be significantly higher than the base rate of 3%. This is the very best accommodation that offers top luxury.

Also, you need to be aware that if you use use a form of software with your property such as Lodgify which helps you to manage the property, you might not be entitled to a split fee so will have to pay the full host service fee yourself.


 

 

Are guests aware of the service fee?

A lot of Airbnb hosts want to ensure their guests are happy with the final costs and that there are no additional charges that guests don’t know about until the last minute. After all, they want the booking to be successful and don’t want the guests to cancel due to additional costs. The good news is that guests will have a clear insight into how much they will need to pay when they get to checkout. The booking will clearly state to guests the booking charge, any cleaning fee and the service fee. That way, they know exactly what will be charged when they make a booking.

 

Is the percentage the same around the world?

Where your Airbnb property is located will also make a difference to the fees. For example, if your property is in China, the service fee is 10%. So it’s worth checking your location whether it’s Mexico, the US or the UK, to double-check how the percentage changes depending on your location. Therefore, you will not be in for a surprise if it’s more than the 3% you were expecting.

 

Any other service fees?

A lot of Airbnb hosts don’t know about Airbnb experiences. But it’s a great idea to make some extra money from your rental and also ensure your guests have a magical time while staying at your property. Whether you want to offer your guests a guided walk of the local area or a boat trip with music, you can do this through Airbnb Experience. But if you do offer one of these experiences, you will encounter an additional fee. This is host-only and is charged at 20% per experience. So if you are going to offer this additional offering, remember to work out the fee to Airbnb.

 

Questions?

 

How does Airbnb calculate service fees?

As discussed above, it depends on whether you have a host-only fee or a split fee with your guests. But the average rate that Airbnb asks for in service fees is between 14-16%.  They believe this is a fair price to cover their services for hosts renting out their property from their site.

 

How does Airbnb collect service fee payments?

A lot of Airbnb hosts wonder when they can expect the service fee to come from their payment. After all, they don’t want to pay if the guest doesn’t turn up. The answer is once the guest has been and completed their stay at your property, you will then receive the total amount with the service fees already deducted. Therefore, you won’t have to worry about saving that amount for Airbnb as they will have taken it out of the final amount already.

 

How can you see the host service fee on Airbnb?

A lot of hosts using Airbnb might not be completely sure how much they will have to pay in fees, especially if they have additional services which might add to the total cost. Therefore, to ensure you know exactly how much you have paid to Airbnb, you can go onto Transaction History which you will find under your account. You can then click under the reservation on the code and then click on Payout. You will then find the breakdown of the fees with the Airbnb Service Fee on the list clearly for you to view. Therefore, if you are unsure if you have paid the correct amount, you can take steps to contact Airbnb regarding the payment.

 

Can I advertise my property for free on Airbnb?

Listing your property is free to do on the Airbnb site. You don’t need to do any other additional advertising unless you want to as they do all the essential marketing for you. Some owners do place it on their own social media accounts but it’s not always necessary. Just ensure it’s in the best possible condition with excellent photos and an interesting write-up before you list it so that you have a greater chance of getting bookings.