Maybe you’ve heard the news already? In forums, or on Facebook, it’s a hotly debated topic!
Airbnb is switching Professional Hosts to the “Host Only Fee” model, bringing the total commission to 14-16%. First of all, we are big fans. It will be simpler, more transparent and the total fees will actually drop.
Why are the fees changing?
The “Host Only Fee” Model combine the total fees. This is less than the previous formula of “Host Fee + Guest Fee”
How and when will I become a Professional Host?
Once you connect to Airbnb through a channel manager like Smoobu. An automatic changeover will take place on 07th December when connected.
What changes in the presentation?
The service fee is removed, and is no longer shown to the guest. This also makes it easier to set prices via all booking portals. It means Full transparency for the guest and host.
What should you do?
Adjust your prices to include the 15% in your fees like you may already with booking.com or Expedia. Easily set a percentage surcharge in Smoobu
What are the effects?
According to Airbnb’s analysis, it results in 17% more bookings via Airbnb, with the same net result for you. In almost all cases it also means lower costs for the guest.
How does the ranking work with the new pricing model?
Airbnb has adjusted its ranking after the search to always show the total price including service fee. The standard price is no longer displayed. There are therefore no disadvantages in the first price overview, only the advantage that no service fee is charged in the final overview. Here is a screenshot.
New host only fee model (no service fee):
This host does use a channel manager and is on the host-only fee structure:
The service fee is paid by the host, so the guest sees a lower price, encouraging more bookings
Old split model with service fee:
This host doesn’t use a channel manager and is on the combination fee structure:
The service fee is passed onto the guest, increasing the guest’s price.
The price in the search does not differ, the total price is always displayed.
We have looked into this. One of our own listings shows that from the time when Airbnb started showing rates as total prices, the visibility of the host only model has increased. This listing has been on the Host Only Fee model from the start. See here September / October 2020.
Can Smoobu change the model?
No we cannot. This is an Airbnb requirement for all hosts who list accommodations connected to any channel manager (not just Smoobu).
Now connect to the Professional Host model and make sure you set up the right pricing structure. The sooner you switch, the better.
If you have any questions, please contact Airbnb about the “Host Fee model” or contact us with any queries regarding Smoobu.
We have all changed our units some time ago, and can confirm the results. Especially during these COVID times, it has been extremely helpful.
Table of Contents
- 1 Why are the fees changing?
- 2 How and when will I become a Professional Host?
- 3 What changes in the presentation?
- 4 What should you do?
- 5 What are the effects?
- 6 How does the ranking work with the new pricing model?
- 7 New host only fee model (no service fee):
- 8 Old split model with service fee:
- 9 Can Smoobu change the model?