The 15% Airbnb Host Fee and Adjusting Your Prices
Summary
This article discusses how Airbnb hosts who use third-party property management software are subject to a 15% host fee as of December 7, 2020 (unless in US, Canada, Mexico, Argentina, Taiwan, Uruguay or the Bahamas) and how to adjust pricing accordingly. It recommends hosts raise prices, monitor market data, and leverage tools like PriceLabs to optimize revenue.
Key Insights
- •Airbnb hosts using third-party property management software (outside of US, Canada, Mexico, Argentina, Taiwan, Uruguay or the Bahamas) pay a 15% host fee, impacting payouts.
- •In the COVID era, length of stay increased and lead times (booking windows) shortened, with booking rushes 2 to 3 weeks out.
Action Items
- ✓For summer markets, raise rates, monitor market data, and lower prices as needed.Effort: lowImpact: medium
- ✓Consider offering discounts for extended stays and share discount codes with previous guests.Effort: lowImpact: medium
- ✓Raise prices to keep the same payout, carefully doing the math. Use market data to inform decisions.Effort: lowImpact: medium
Tools & Resources
- →PriceLabs: PriceLabs is a dynamic pricing tool that helps STR operators manage pricing and stay restrictions.
- →PriceLabs: PriceLabs blog on Adjusting for the 15% Host Fee.
Watch Out For
- ⚠Don't discount too much or panic. Experiment with one property.
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