As a property owner, it is important to understand these fees that directly impact your business’s revenue and profitability.
How much does Airbnb charge hosts?
Airbnb charges hosts a service fee for each booking. The percentage Airbnb takes varies, but it's typically around 3% for most hosts. However, Airbnb's commission can be as high as 14% or more for hosts with particularly strict cancellation policies.
The Different Types of Airbnb Fees That Hosts Need to Know
Understanding the different types of fees Airbnb charges is important for managing your small hotel's revenue. Airbnb generally falls into two types of fees: fees charged to hosts and fees charged to guests.
Airbnb Host Fees
These fees are usually a percentage of each booking that Airbnb charges hosts. They primarily consist of two categories: service fees and taxes.
These fees are typically a percentage of each booking that Airbnb charges hosts, and consist of two main types: service fees and taxes.
1. Owner's service fees
This fee helps cover the cost of using the Airbnb platform, including services like customer support and secure payments. Airbnb's service fee is broken down into two additional components:
Split fee: This is the most common fee structure and is how the fee is split between the host and the guest. Most hosts pay around 3% of the booking total (nightly rate + cleaning fee + additional guest fee, but not including Airbnb fees and taxes). This fee is automatically deducted from your payout.
Owners located in certain countries (e.g. Italy) and those with ig database particularly strict cancellation policies may be charged a fee of more than 3%.
So what do guests pay? Most guest service fees are less than 14.2% of the total booking, but they vary depending on a few factors, such as if they stay more than three months.
Host-only fee: The “Host-only” fee option means that Airbnb takes all of the commission from your payout, typically around 14% to 16%. But like split fees, if you have a particularly strict cancellation policy, you’ll likely pay a higher fee, while monthly stays may be cheaper.
For some types of Airbnb listings, host-only fees are required, including traditional accommodations like hotels.
For example, if you charge $100 per night, Airbnb will take a $15 fee.
2. Value Added Tax (VAT) and other taxes
In some locations, Airbnb collects taxes on behalf of hosts and remits them to local authorities. In other locations, hosts are responsible for collecting and remitting these taxes themselves. In such cases, the service fee is inclusive of VAT.
Airbnb Guest Fees
These fees are fees that you can charge your guests in addition to the service fee and can be broken down into four categories:
1. Cleaning fee
The cleaning fee is set by the Owner to cover the costs incurred in clearing the property and leaving it in a clean and tidy condition after the guest has left. This fee is not mandatory and the Owner may choose whether or not to include the cleaning fee in the rate.
2. Additional guest fee
The property owner may charge an additional fee for exceeding the occupancy limit. This fee is set by the property owner and is typically charged on a nightly basis.
3. Security deposit
A security deposit is a sum of money that a property owner can collect to cover any damages that may occur to their property. This sum is returned to the guest if there is no damage and the property owner files a complaint within 14 days of check-out.
4. Cancellation fee
A cancellation fee will be charged if the guest cancels the reservation after the specified time period. The amount of the fee and the duration will depend on the owner's cancellation policy.
Strategies for Managing Airbnb Fees
Managing Airbnb fees and balancing competitive pricing with profitability isn’t easy. Here are five top strategies you can use to gain an edge:
1. Include fees in your costs.
You can only manage what you can measure. Data analytics is the key to balancing Airbnb fees with your costs, which can help you avoid losing money in the long run.
Before setting your listing price, it's important to understand all the costs associated with running your property, including Airbnb fees, cleaning, maintenance and other overhead costs. This will help you set a price that covers your costs and enables you to make a profit.
