How much is the Airbnb commission?
Getting to Grips with Airbnb Fees
Thinking about jumping into the Airbnb game? Before you dive in, it's smart to get a handle on the fees you'll encounter. These fees matter for both hosts and guests.
Host Service Fee Breakdown
If you're hosting, you'll need to pay a service fee for each booking. Usually, it's around 3% of the booking subtotal. But if you have a Super Strict cancellation policy, it can shoot up to 14% or more.
| Fee Type | Percentage of Booking Subtotal |
|---|---|
| Standard Host Service Fee | 3% |
| Host Service Fee with Super Strict Cancellation | Up to 14% |
This fee covers stuff like customer support and secure payment processing. Make sure to factor these fees into your pricing to keep your profits healthy. Knowing these fees can help you get the best bang for your buck. For more tips, check out our article on the profit margin for Airbnb hosts.
Guest Service Fee Explained
Guests aren't off the hook either—they pay a service fee too, usually around 14% of the booking subtotal. This fee can change based on a few things. Starting April 1, 2024, there will be an extra charge for cross-currency bookings, which could bump the fee up to 16.5% (Airbnb).
| Fee Type | Percentage of Booking Subtotal |
|---|---|
| Standard Guest Service Fee | Up to 14.2% |
| Cross-Currency Booking Fee | Up to 16.5% |
For stays of 28 nights or more, the guest service fee goes down. This can make long-term bookings more appealing for guests and more profitable for hosts. Want to squeeze the most out of your Airbnb? Check out our guide on making the most money on Airbnb.
Understanding these fees is key if you're thinking about starting an Airbnb business. It helps you price your property right while covering the costs of hosting on Airbnb. Curious if an Airbnb is a good investment? Dive into our detailed articles for more insights.
Boosting Your Airbnb Income
Adding Extra Services
Want to make more money on Airbnb? It's all about offering extras that guests love and are willing to pay for. Here’s what I do:
- Cleaning Fees: I charge a cleaning fee to cover the cost of tidying up after each guest. This keeps my place spotless for the next visitor.
- Extra Guest Fees: More guests mean more wear and tear. I charge a fee for each additional guest beyond a set number to cover these costs.
- Pet Fees: Pets can be messy, so I charge a pet fee to cover extra cleaning and potential damages.
- Airport Pickup and Drop-off: Offering airport pickup and drop-off is super convenient for guests and adds extra cash to my pocket.
- Breakfast and Meals: Providing breakfast or other meals not only makes guests happy but also boosts my earnings.
- Guided Tours: I offer guided tours of the local area for guests who want a deeper experience.
- Equipment Hire: Renting out bikes, kayaks, or surfboards appeals to adventure-seekers and adds to my income.
These services make guests happy and increase my revenue without extra Airbnb fees.
Adjusting Stay Rates
Tweaking your rates can also help you earn more. Here’s my approach:
- Special Offers: Through Airbnb's messaging, I send special offers to encourage bookings. These offers include what I’ll earn, minus Airbnb’s service fee, taxes, and security deposit.
- Seasonal Pricing: I adjust my rates based on the season. Higher rates during peak times and lower rates during off-peak times help keep my place booked.
- Long-term Discounts: Offering discounts for longer stays attracts guests looking for extended accommodations, leading to higher occupancy and steady income.
- Last-minute Deals: Discounts for last-minute bookings help fill vacancies and keep my property occupied.
- Negotiation Tactics: I’m open to negotiating rates with potential guests, ensuring any agreed price covers my costs and leaves a profit.
By adjusting rates and offering deals, I keep my property booked and maximize my earnings.
Here’s a quick look at how these strategies can boost my revenue:
| Service/Strategy | Potential Revenue Increase |
|---|---|
| Cleaning Fees | $20 – $50 per stay |
| Extra Guest Fees | $10 – $30 per guest |
| Pet Fees | $15 – $50 per stay |
| Airport Pickup and Drop-off | $30 – $100 per trip |
| Breakfast and Meals | $5 – $20 per meal |
| Guided Tours | $50 – $200 per tour |
| Equipment Hire | $10 – $50 per rental |
| Special Offers | Variable |
| Seasonal Pricing | 10% – 50% rate adjustment |
| Long-term Discounts | 5% – 20% discount |
| Last-minute Deals | 10% – 30% discount |
Using these strategies, I can boost my Airbnb income and keep my property a profitable investment. For more tips on managing and maximizing your Airbnb, check out our articles on successful airbnb and make the most money on airbnb.
