What you need to know about
Simplified Pricing
Historically, Airbnb has had a single fee structure for all Hosts, in which a service fee is charged to both the Host (3%) and the guest (under 14.2% in most cases). Based on feedback from many professional Hosts, we launched a new fee option for software-connected Hosts to remove the guest service fee and provide Hosts with more control over their rates. This fee structure is known as Simplified Pricing.
From December 2020, Simplified Pricing (15% Host fee) is the only available fee structure to all software-connected Hosts on Airbnb globally (excludes US, Canada, Mexico, Uruguay, The Bahamas, Argentina and Taiwan).
From December 2020, Simplified Pricing (15% Host fee) is the only available fee structure to all software-connected Hosts on Airbnb globally (excludes US, Canada, Mexico, Uruguay, The Bahamas, Argentina and Taiwan).
Benefits
This service fee structure allows you to have a simpler pricing strategy as you’ll be able to set what the guests will pay.
We’ll also highlight the fact that there is no guest service fee added to your rates, making your listings more attractive to many guests.
Hosts that have decided to switch and keep their prices competitive across channels have seen an overall increase in their bookings (~17%*).
*Average observed bookings increase for hosts using host-only fee in Europe between November 2019 and February 2020 . Actual results may vary for each host.
We’ll also highlight the fact that there is no guest service fee added to your rates, making your listings more attractive to many guests.
Hosts that have decided to switch and keep their prices competitive across channels have seen an overall increase in their bookings (~17%*).
*Average observed bookings increase for hosts using host-only fee in Europe between November 2019 and February 2020 . Actual results may vary for each host.
What some of our hosts have to say about the Simplified Service Fee
"We've experienced an increase in bookings and it makes it a lot simpler for guests. It also brings it in line with all the other platforms."
-- Gold Coast Holiday Rentals, Host in Australia
"...it makes performance analytics and pricing decisions much easier. We also appreciate the goodwill and branding that comes with our listings having an icon displayed showing that we cover the guest service fees as their host."
-- The Urban Butler, Host in New Zealand
How can I prepare for this?
1
Add your VAT number
To prepare for this change, please make sure that you have added your VAT information to ensure Airbnb does not withhold VAT on your host fee on Airbnb.
2
You can switch now
If you want to control your listing’s final price before taxes, or if you host on other websites, you can include the service fee in the price you set.
3
Adjust your rates (if needed)
Since a larger service fee will be deducted from your payouts, you may want to adjust your prices through your Software Provider to cover the difference to ensure your earnings don’t change. Before adjusting your prices, keep in mind that it’s important to stay competitive.
Frequently Asked Questions
Will the host service fee be taken out of the cleaning fee and any other standard fees as well?
This fee is calculated from the booking subtotal (the nightly rate plus cleaning fee and additional guest fee, if applicable, but excluding Airbnb fees and taxes).
When a booking is cancelled and we refund the guest, can we get back the host service fee too?
The refund policies for hosts on service fees will remain the same. If your guest cancels the booking, service fees will not be charged. If you cancel the booking as a Host, penalties may apply.
How do I refund my guest?
As a host, what penalties apply if I cancel a reservation for a stay?
How do I refund my guest?
As a host, what penalties apply if I cancel a reservation for a stay?
Only some of my listings are connected to my channel manager. Can the rest stay on the split-fee pricing?
No, the Simplified Pricing fee structure will apply to all listings as long as your account is connected to a software or channel manager.
Are we required to add our VAT details directly on Airbnb as this has already been already provided to our channel manager?
Yes, you would still need to log into your Airbnb account and add your VAT number here.
Where can I find more information about VAT?
Please consult your nearest local tax offices or your tax advisors as to your specific tax consequences.
Is simplified pricing fee calculation including tourist taxes?
No, Host fee is calculated from the booking subtotal excluding Airbnb fees and taxes.