AirBnB new commission model

[costadelsoul]

Hi,

I have recently been offered by AirBnB to take up on their new commission model, has anybody else seen this and taken it up?

Choose how to include the Airbnb service tee in your price
The service fee helps operate the Airbnb platform, including services like 24/7 customer support and credit card processing.
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.
include all Airbnb service fees In your price recommended
No service fees will be added to your nightly pnce. You'll pay a 14% service fee out of the price you set.
• Add Airbnb guest service fees to your price
Yout pay a 3% service fee out of the price you set. Your guests will pay a service fee of up to 20%, which will be added to your nightly price.
Note:
• Airbnb's service fees apply to the booking subtotal, which includes base rate, cleaning fees, and any additional guest charges.
• Airbnb collects an additional 2% service fee on all bookings of listings with a SuperStnct cancellation policy (under either fee option above).

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[ianh100]

I think we heard this was coming, at the end of the day the gross price to the guest remains the same, today we pay a small fee and the guest pays a higher fee. They have been clear they want to say to guests there are no fees.

Today I keep AirBnB prices (paid to us) close to other sites so it is cheaper for guests to book direct. This will mean I have to uplift the price i list at to include these fees that the guest currently pays.

[Cotto]

Not very good for the owners, as we will have to pay the taxes on the renting price, not the effective 86% we get from the guest. Only professionals can deduct costs (at least in Italy) so we always have to declare the full rental price, that excludes the fee paid by the guests to the OTA, but not our fee (it's like an advertising cost, we cannot deduct that from taxes).

[newtimber]

• Airbnb collects an additional 2% service fee on all bookings of listings with a SuperStnct cancellation policy (under either fee option above).[/i]

I assume SuperStnct means the no-late cancellation refund? But if if the guest cancels, under this new policy, Airbnb will get nothing. So why an additional 2% service fee?

[newtimber]

Not very good for the owners, as we will have to pay the taxes on the renting price, not the effective 86% we get from the guest. Only professionals can deduct costs (at least in Italy) so we always have to declare the full rental price, that excludes the fee paid by the guests to the OTA, but not our fee (it's like an advertising cost, we cannot deduct that from taxes).

It is good for UK owners who are VAT registered as they can reclaim the VAT on the service charge. They cannot do this at the moment as it is paid by the guest.

[newtimber]

I asked about the service fee if the guest cancels and this is the Airbnb reply:-

I am a host and I see you are recommending that I pay the guest service fee at a fixed rate and include it in my prices.
What happens if the guest cancels? Under the normal rules, the service fee is still payable by the guest.
Is the host supposed to pay it still even though the host gets no booking and therefore no money in?

Airbnb Support
13:55

Thank you very much for contacting Airbnb Customer Service. My name is Rui and it is a great pleasure to assist you.

The answer to your question is yes. If the guest cancel, is you who have to pay de service fee.

So the guest books and cancels after 48 hours and at least 15 days before their holiday, and the host not only gets no booking and no money in but pays Airbnb 14% of what they would have received!

[zebedee]

It stands to reason then, that Airbnb cannot be considered a commission site.

It needs to be talked and thought about using completely different language.

[e-richard]

It stands to reason then, that Airbnb cannot be considered a commission site.

Well, yes and no. They are a commission site inasmuch as they make a living by taking a % of each booking and not a fixed amount per month/year.

It needs to be talked and thought about using completely different language.

Yes, definitely. I believe that HA are thinking in this direction as well. The #bookdirect movement (and others) have successfully painted a less-than-salubrious image of these sites - highlighting their greed in taking from Peter and from Paul as well and robbing Paul (the guest) by adding a huge chunk to the holiday cost strictly for their own pockets but selling under the guise of guarantees or safeguards that are uncollectible.

What this move does is attempt to hide the skulduggery, or rather pass the buck to the Host. So when travellers complain about the huge cost, they can simply blame us for setting high rates.

After all, us owners have a choice now to sell at market rates and absorb the commission.business. Clever huh

[zebedee]

Yes, e-Richard, if they are to take a fee when the booking is cancelled (as per Newtimbers post) I saw that as more of a mutation of the usual commissioning model.

Or if other sites are going to do the same, maybe it is more of a malignancy..........??? It’s definitely toxic.

[e-richard]

Yes, I did read newtimber's horror story about cancellation.

I figured that this was a reaction to the scenario where we get direct contact with the guest on booking, and if the guest then cancels, Airbnb (probably justifiably) need to protect themselves against cancel-then-bookdirect situations. Under the previous model where guest paid booking fee, Airbnb would keep the fee on cancellation.

All in all, it's a flawed business model but has millions of supporters

[Stewart]

I'm sure I said in another post that the big player OTA strategy to market (and supplier) domination means this sort of stuff is a question of "when" and not "if". I originally thought my love affair with ABB would last two years. It may well be shorter.

We are going to feel the cold winds of a world being the play park for global monopolies (e.g. Uber, Just Eat) who have commoditised taxi's and take away food. Commodities sell only on lowest price.

In our world I think we can discount the entry of new sexy, good value OTA entrants but see further consolidation with the established players merging into another Uber. I cannot see anything good coming out of this. Not all of us can offer a niche product.