14% vs 3%? Airbnb Service Fee Update !?

Have you received this before ?

Starting 4th June 2019, Airbnb has implemented a new service fee on every reservation. So now there’s 2 types !

The original service fee is you (the host) and the guest will pay a certain amount, of which
a. the Host will pay 3% – 5%
b. the Guest will pay 12% – 20%(I thought it’s only up to 15%, oh well…)

And now there is a new option, of which it’ll be similar to hotel booking platforms, the host (only the host) will have to pay the service fee (aka platform fee) of 14% (+2% if super strict cancellation policy). This option will be compulsory for HOTEL Accommodation Types.

So, a quick recap. 2 options
Option 1 : Host pay ALL service fee
Option 2: Host and Guest pay service fee

So which option should you choose ?

It really depends on you. There are definitely advantages to both.

If you choose Option 1:
You’ll be able to attract more guest compared to other units that requires guest to pay a certain amount of service fees. But you might actually also have to increase your price to be able to cover your expenses. Which means, it might affect the chances of guest checking out your unit because it is more expensive compared to other listings.

So it’s First Impressions vs Confirm Booking

If you choose Option 2:
Nothing different from what you’re having now, it’s just that when guest are going for the last step, they might choose the units without requiring them to pay the service fees (IT’s UP TO 20%, that’s crazy high actually). There are still chances that after adding the service fees, it’s still lower though.

So again, First Impressions vs Confirm Booking

So, How?

I would suggest to follow what’s the option that the host around you is using. Since Option 1 is actually mainly for hotels. I would suggest that you could stick to Option 2 for now. UNLESS, everyone else in your area is using Option 1, then go for Option 1 also.

Here’s the link to Airbnb to read more :
https://www.airbnb.com/help/article/1857/what-is-the-airbnb-service-fee

Either way, no matter which option you choose, all we can say is, Happy Hosting !

by
Jayden Lee

HostPlatform GM