What you need to know

Simplified Pricing

Summary

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). Last year, 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 7th 2020, Simplified Pricing (15% host fee) will be the only available fee structure to all software-connected hosts on Airbnb globally (excludes US, Canada, Mexico, Uruguay, The Bahamas, Argentina and Taiwan).

What does it mean?
  • We’ll deduct a flat 15% host service fee from each payout and won’t charge a guest service fee
  • Existing bookings won’t be affected, but this change will apply to all bookings made on or after December 7th, 2020.
What does it mean?
  • We’ll deduct a flat 15% host service fee from each payout and won’t charge a guest service fee
  • Existing bookings won’t be affected, but this change will apply to all bookings made on or after December 7th, 2020.
Benefits

This new service fee structure will allow 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.

Benefits

This new service fee structure will allow 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.

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

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

...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

Switching now will enable you to have a 14% host service fee through December 6th. It will then switch to 15% on December 7th. Switching early may also help you access the benefits of more control over your price sooner, such as improved guest visibility and more competitive pricing.

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

Can this be applied to some listings only?

Simplified Pricing fee structure will be applied to all listings associated with accounts who have >50% of listings located in eligible countries (excluded countries: US, Canada, Mexico, Uruguay, The Bahamas, Argentina and Taiwan).

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?

What options do I have for cancelling a reservation for a place to stay due to coronavirus (COVID-19)?

As a host, what penalties apply if I cancel a reservation for a stay?

How do I adjust my rates when this change is implemented?

You can adjust rates through your Software Provider. If you need any help, please seek assistance from their customer support.

What happens if I don’t want to switch over?

You would need to disconnect your listings and account from your channel manager and manage them manually on Airbnb if you want to keep your current fee structure.

In the event Airbnb fails to collect the payment from a guest (i.e. declined card), will Airbnb waive the host service fee?

If the system fails to collect the payment from guests, the booking will not be confirmed and so host service fee charges will not apply. Airbnb will only be able to deduct the host service fee if there is a confirmed payout sent to you for a booking.

Remember that payouts are only sent after the guest checks in. When will I get my payout?

Can I make the switch now before December 7th?

Yes, you can! Your host service fee will be 14% until December 6. It will then switch to 15% on December 7.

Make the switch here.

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.

Will all co-hosted properties auto-migrate to the Simplified Pricing structure on December 7h?

Only listings that an account primarily owns will migrate to the Simplified Pricing fee structure on December 7th. Other listings that are owned by other accounts will not be switched, unless that account is connected to a channel manager as well.

As our properties are listed through a channel manager, are we required to add our VAT details as this has already been 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 for Italian hosts?

Please consult your nearest local tax offices or your tax advisors as to your specific tax consequences. We also suggest to visit FlexTax external knowledge base resource here for more information.

In Italy, will the commission percentage be the same regardless of the cancellation policy applied?

In Italy, from December 7, 2020, the service charges payable by the host will increase to 15%, regardless of the cancellation policies applied.

Is simplified pricing fee calculation including tourist taxes?

No, Host fee is calculated from the booking subtotal excluding Airbnb fees and taxes.

How should I adjust my rates to ensure my nightly earnings don’t change?

Your potential earnings on Airbnb depend on multiple factors such as demand, cleaning fees, extra guest fees, etc.

This fee structure gives you more control of your final prices. Hosts with this fee structure find it easier to manage their prices - especially across channels. We heard that removing the guest fee made it easier for hosts to price competitively, and we saw that guests preferred to book places that didn’t have a guest fee.

What happens to those hosts that have both API and Direct listings on the same account?

If your account is being migrated to Simplified Pricing Commission model, all connected listings will be moved to Simplified model.