Yes, that's right. Now, Airbnb considers you a professional host. This happens when you connect your Airbnb account to any Property Management System (PMS).
And in the end, this benefits you because the final price that your guest pays in most cases is cheaper or the same (and never more expensive), so in the end in most cases you will be more competitive if you're using the Host-only service fee.
***Read more information about Airbnb's service fees here***
See below a simple example (same earnings):
Before
Total Price on Airbnb € 115
Guest Fee € 12
Host Fee € 3
Your net Income €100
Now
Total Price on Airbnb € 115
Guest Fee € 0
Host Fee € 15
Your net Income €100
How can I ensure my earnings don't change?
As the 15% host-only fee will be deducted from Airbnb's payout to you, please make sure to increase your Airbnb prices to cover the commission. Before, the guest would pay for some of the service fee but now it is being entirely deducted from your final price.
Check Airbnb's additional details and tips for hosts to update their prices to ensure their earnings don’t change.
How to increase Airbnb's prices from Smoobu? By increasing your Airbnb mark-up. See below
Increase your Airbnb mark-up % from Smoobu
In order to do this, Smoobu recommends you to define a higher mark-up for Airbnb. This mark-up means that if you charge 100/night for direct bookings, you may define a 15% mark-up for Airbnb and therefore offer a 115/night rate on Airbnb's platform.
You should set this up from Smoobu - Calendar - Settings > Price sync/Mark up. More info here: How to reflect commissions with a mark-up?
Doesn't that mean my guests will pay more?
Not necessarily, no. In almost all cases it also means lower costs for the guest. A common concern is that increasing the mark-up by 15% then means that the guest will see a higher price. Remember this isn't so, as the 15% fee is hidden from the view of the guest.
According to Airbnb’s analysis, it results in an increase of 17% more bookings via Airbnb, with the same net result for you. It's worth noting that perhaps in the future Airbnb may possibly even roll this out to all accounts so best to get ahead now!
This host doesn't use a channel manager and is on the combination "Before" fee structure:
The service fee is passed onto the guest, increasing the guest's price.
This host does use a channel manager and is on the host-only "After" fee structure:
The service fee is paid by the host, so the guest sees a lower price, encouraging more bookings
Comments
1 comment
Hi there. Is there a way to see or set 'net' income within smoobu. It's hard to get an accurate reflection of actual income when using different hosting platforms (airbnb, booking.com) etc. all my income costs from airbnb (in cockpit/statistics) are gross and wondered if there was way to change this or add different calculations on smoobu?
Thanks
Please sign in to leave a comment.