Vacation rental sites have enjoyed consistent success for years. Many landlords place their homes for rent on platforms like AirBNB. In exchange, the latter take commissions and service fees, billed to the owners. What are they for ? What are the amounts deducted? Find out the answer with our Aix-en-Provence concierge.
What is the AirBNB service fee? The Aix-en-Provence conciergerie explains
Seasonal rentals have continued to develop for the past ten years. At the head of the gondola, we find the AirBNB site, the main platform for seasonal rentals, so much so that the term AirBNB has become a common name to define a seasonal rental. Today, the site offers many options and several services for owners and tenants. "Unfortunately, these services are not free," says Joël Chouraqui, director of our Concierge Aix-en-Provence. They are part of a very small commission taken directly by AirBNB on each booking”.
Indeed, AirBNB relies on these fees to be able to carry out its activities and cover the costs related to the products and services that they offer to the owners so that they can rent their accommodation. This is particularly the case for user assistance available 24/24, protections for owners and their property, but also marketing activities to promote your rental on social networks or search engines. By understanding precisely what AirBNB service fees are and why they exist, landlords can define a pricing strategy that makes sense for them and their listing.
How much is the AirBNB service fee for vacation rental owners?
Most hosts pay a flat AirBNB service fee of 3% of the reservation subtotal. The subtotal is your price per night plus any optional fees that guests are charged, such as cleaning fees, and does not include AirBNB fees or taxes. AirBNB service fees are competitive and payment processing is not charged, allowing hosts to retain a larger share of their revenue. These fees are therefore an integral part of the operation of AirBNB.
For example, if you charge 100 euros for a 3-night stay, plus 60 euros for cleaning costs, your booking subtotal is 360 euros. The host service fee, which is typically 3% of your booking subtotal ($10,80), is deducted from your earnings, and a 14% ($50,40) service fee is charged to guests and included in the total price they pay. In this example you would earn 349,20 euros and your traveler would pay 410,40 euros. “The difference between the two is the amount that AirBNB takes in total on the reservation, explains Joël Chouraqui, director of our Aix-en-Provence concierge. That is a total of 61,20 euros for AirBNB.
A new structure for AirBNB service fees
Last year, based on feedback from many professional hosts, AirBNB launched a new pricing structure for software-connected hosts to remove service fees and give owners more control over their rates. This fee structure is known as simplified pricing. This new structure around AirBNB service fees allows owners to have a simpler pricing strategy as they can define what travelers will pay. According to AirBNB, hosts who decided to switch to the new pricing structure to keep their prices competitive saw an overall increase in their bookings (about 17%).
Do tenants of furnished tourist accommodation pay AirBNB service fees?
The answer is yes, AirBNB service fees are also included for travelers renting property on the US platform. The total price of an AirBNB reservation is calculated based on the nightly rate set by the host, plus any other fees or costs charged by the host or AirBNB. For example, there are the AirBNB service fees charged to travelers, which allow them to benefit from 24-hour assistance and which guarantee the proper functioning of the platform. Some hosts also charge a maintenance fee for cleaning the listing, as well as a fee for additional guests beyond a certain number.
Some hosts can also integrate a deposit with their reservation, using software connected to the API. Outside of this method, hosts are prohibited from charging a deposit outside of the platform. Instead, AirBNB informs travelers at the time of booking that their payment method may be charged if they cause damage during a stay. There are still some minor taxes that the traveler may have to pay, such as VAT or certain local taxes. Finally, the tourist tax is also paid by the traveler, then transferred by AirBNB to the municipalities twice a year.
Seasonal rental: What are the cleaning fees charged by AirBNB for?
Other AirBNB service fees include cleaning fees. According to the AirBNB platform itself, this fee “allows hosts to cover the additional expenses they incur to prepare their accommodation before the arrival or after the departure of guests”. In general, the owner of the vacation rental is free to choose what to include in these costs and how to price them. "When a traveler consults the advertisement, he sees a price per night including the cleaning costs divided by the total number of nights chosen", explains Joël Chouraqui, director of our Aix-en-Provence concierge service.
What commissions do other vacation rental sites charge?
All vacation rental sites use service fees and commissions, which allow them to offer quality services to owners and travelers. Their amount varies depending on the seasonal rental platform you choose: for example, if AirBNB charges between 3% and 5% to its owners, and between 5% and 15% to tenants, this is not the case for all its competitors. Booking.com, meanwhile, charges between 15% and 17% fees to its owners, but nothing to tenants. As for TripAdvisor, owners are taxed at 3%, and tenants pay between 8% and 14,5% commission. The amount varies according to several criteria specific to each site.
Commissions for AirBNB concierges, other extras for owners
Landlords who use rental management agencies and AirBNB concierges must also pay a commission to the relevant concierge. Indeed, in exchange for concierge services, fees are applied. Thus, the vast majority of AirBNB concierge services charge between 20% and 30% of rental income for their services. Thus, the owners earn a maximum of 80% of their income. The more the accommodation is rented, the more the owners earn. Some concierges like YourHostHelper offer premium services that guarantee maximum revenue for owners who use their services.
AirBNB and other vacation rental platforms therefore charge different percentages of commissions and service fees. These are intended to allow the sites to offer quality services, financed both by the owners and by the tenants. The other taxes and fees each have their uses, with in particular the cleaning fees which make it possible to thoroughly clean a furnished tourist accommodation before it is put back up for rental. Travelers paying an AirBNB service fee also participate in the economy of seasonal rentals, but also those of their cities thanks to the tourist tax.
