A few months ago, we updated you on the various commission plans made available by Airbnb.
In this article, we told you about the “Host-only Fee,” also known as “simplified pricing”: with this commission plan, your guests do not pay any “service cost.” Still, the entire commission (usually 15%) is deducted from the host payout.
Airbnb has just announced that from December 7, 2020, all its Hosts (except for the USA, Canada, Mexico, Argentina, and other countries of the American continent) will switch to the Host-only Fee model.
The Host-only fee is a pricing structure that can offer greater control over prices and should attract more travelers by eliminating service costs for the guest.
This means that Airbnb will deduct the 15% service charge from the total fee and not charge anything to the guests, who will pay the amount you set on the Channel Manager for Airbnb.
The Split-fee plan will no longer be available for your listings. This change will apply to all reservations made on or after December 7, not to those already existing.
On the other hand, Airbnb has released some significant data indicating an increase in reservations of around 17% because the guest no longer displays and, of course, does not have to pay the “service cost.”
What we recommend you to do
– Check and arrange your prices: since the commission that will be deducted from your payout will be higher, it is important to change your prices through the Channel Manager so that your revenues won’t change. Before modifying your prices, however, remember that it is essential to remain competitive. Airbnb reported that Hosts, who have decided to switch to the simplified pricing and maintained competitive prices, have seen an overall increase in their bookings of about +17%*.
– Add your VAT number. To prepare for this change, please check that you have added your VAT information on the Airbnb extranet to ensure that no VAT is deducted from your Airbnb Host costs.
*Average increase of bookings received by Hosts applying the simplified price in Europe between November 2019 and February 2020. Actual results may vary depending on the Host.
Can a Host switch to simplified pricing before December 7, 2020?
You can switch to the simplified pricing from now on, so you can make the transition easier and update your prices in advance. To switch to the simplified pricing immediately, click here.
WuBook is a cloud service provider for managing reservations and is extraneous to these policies established by the Airbnb portal.
As general advice, to keep the situation unchanged, we suggest acting on the rate plan you’re currently using for Airbnb (both on WooDoo and ZAK).
If you’re applying a derivation from a standard price, you’ll only need to adjust the percentage of increase to raise the rate of a specific apartment or room.
Suppose you have a completely separate pricing plan for Airbnb. In that case, you have to increase prices manually so that the final value corresponds to the amount previously paid by your guest (therefore including the cost of the service).
We remain available as always to help you and to answer your questions.
Thanks and good work with WuBook