Airbnb has introduced a new "service fees" structure that affects hosts and guests differently, especially when connecting a channel manager like Aloha Pro. Below, we explain the main changes and benefits of this new structure to help you understand how it will impact your listings.
Fee Structure without Channel Manager When you manage your listings directly from Airbnb, the "service fees" structure is divided between the host and the guest. For example, if you set a base price of $100 USD:
Host: Pays a 3% commission.
Guest: Pays an additional fee of 12% to 14%.
This makes the total price for the guest between $112 and $114 USD, while your income as a host is slightly reduced to $97 USD after the commission.
Fee Structure with Channel Manager When you connect any channel manager, including Aloha Pro, the "service fees" structure changes to simplify the fees, concentrating the commission on the host:
Host: Pays a 15% commission.
Guest: Does not pay additional service fees.
In this case, the price for the guest remains the same ($114 USD), but your income stays the same ($97 USD) after the commission.
Why Does Airbnb Increase the Commission When Using a Channel Manager? The increase in commission when connecting a channel manager is due to Airbnb simplifying the fee model for guests. This structure benefits the guest by showing a clearer price with no unexpected additional fees. By centralizing the commission on the host, Airbnb enhances transparency and potentially increases booking conversion, as guests are not discouraged by hidden fees.
How is This Beneficial?
More Competitive Prices: Prices for guests can be cheaper, which may increase the competitiveness of your listings without affecting your income.
Transparency for Guests: By eliminating hidden fees for guests, the booking experience is clearer and more straightforward, improving customer satisfaction.
Improved Airbnb Rankings: Airbnb tends to favor listings using this new structure in its algorithm, as it promotes practices that benefit both guests and the platform.
With Airbnb’s new "service fees" structure, the impact on your income is minimal, but the benefits for the guest experience are notable. By using a channel manager like Aloha Pro, you maintain efficiency in managing your properties while offering more attractive and clear prices for your guests.