This letter came into my email box from Pricelabs which IMO was interesting b/c I was forced into this host based model about a year ago (I was able to get back to split fee model eventually) and came to the same calculations - 15.5% are really 18.5% because of snowball effect of fees on top of fees. And to the most customers Airbnb will look like a generous benefactor with a greedy host charging them ridicules fees. IMHO I don't want that fee and possible displeasure and associated questions directed to me. I am not charging that fee so I do not think it is fair to expect me to represent it on Airbnb behave. YMMV
"Airbnb’s new 15.5% host-only fee takes effect October 27 — and if you’re connected to Airbnb through a property management system (PMS), this change directly affects your final payout.The fix is simple — and quick. You can keep your net payout the same by updating your Airbnb channel markup in your PMS, not in PriceLabs. PriceLabs pushes prices to your PMS, which then sends them to Airbnb — so the change must happen in your PMS settings.You just need to:
Watch this 2-minute video to understand the math behind it.
Want to go deeper?Join our live webinar in which PriceLabs experts break down the math behind the markup in simple terms and get your questions answered.Best regards,
Your PriceLabs Team"
PS Adjusting nightly rates and surcharges to higher values (from 17.2% total in split fees model to 18.5% in host based model obviously will increase the total the guest will have to pay by 1.3%. So, this upcoming Airbnb initiated change won't only shift the blame for ridicules fees to us but will make our listing more expansive and less attractive to our guests making our listings less competitive. Thoughts?
I'm trying to add 18.34 or 20% to the Airbnb markup price but I'm getting an error, it says something about the cleaning fee and the minimum rate I can setup.
Channel integration - Airbnb - Rate Adjustment - Adjust both rent and surcharges? - I did not get any errors or questions.
FYI Pricelabs zoom meeting confirmed that because Airbnb calculates the 15.5% host fee on the total booking amount (including cleaning fees or any markup to offset the fee), it effectively creates a compounding cost. The result is that guests end up paying more, and hosts either have to absorb the difference or risk losing competitiveness. So, their calculation is to raise rent and all fees by 18.34% to keep the payout the same. Another piece of interesting news was Airbnb plans to move all USA listings to host base fees by December 1, 2025.
If you'd like to watch recoding of their meeting https://youtu.be/dWkZMsW8SqY
Here's the error I got:
After the markup, dd your cleaning fee increase too? How much is your cleaning fee and what's your minimum rate?
I can't recall all the details but a year or more ago I had to drop my cleaning fee price from $450 to $350 and compensate by increasing the nightly rate b/c of some Airbnb rule. Sorry, I don't remember much more than that. My minimum nightly rate is $750. Yes, the cleaning fee increased the same.
I got it now. Airbnb has a specific rule that allows a minimum nightly rate depending on the cleaning fee. Thanks for helping out!
You are welcome
