09/24/2024
I am in the process of getting all rental channels I use for my STR business to channel manager(CM) b/c I want instant booking on all channels and have to come up with a sure way to avoid double bookings and insane airbnb, Vrbo host fees if I have to cancel b/c of double booking. Also, I want to give my guests an opportunity to save on all the fees by using my direct booking website and google vacation rentals. Anyway, when switching Airbnb to CM they switched me from split base service fee model to host base service fee model. So when Airbnb switched me from the split base fee model (14.2% guest fee + 3% host fee = 17.2%) to their "new and improved" Host Base Fee model—a flat 15% charged to the host—it seemed like an improvement.
But after crunching the numbers, I discovered it’s anything but. 😱
Here’s the truth: While 15% sounds better than 17.2%, Airbnb’s Host Base Fee isn’t as simple as it looks. They calculate their 15% fee on everything—including any extra fees I add to cover that host fee. That means I’m stuck paying a fee on top of a fee!
💡 The Reality: I want to keep my payout at $2,100 for a 2-night stay (including the cleaning fee), no matter the platform I use. But here’s what happens when I compare Airbnb’s Host Base Fee model to the old split base fee model:
📝 Example Breakdown:
* Target payout: $2,100
* To maintain that payout under the Host Base Fee model (15%), I need to charge my guest 17.92% more, meaning the guest pays 18.5% more than they would under the split fee model.
* Split Base Fee Model (17.2%): The guest pays less overall, and I get the full $2,100 payout without hidden extra costs.
📊 Breakdown:�Airbnb’s 15% fee is applied not just to the booking total, but also to any fees I add—like a management fee or an increased nightly rate to offset the higher host fee. This significantly drives up the guest’s total cost.
👉 Example Guest Costs:
* Host Base Fee Model: Guest pays $2,842.19
* Split Base Fee Model: Guest pays $2,398.20
* That’s a $442.99 difference purely from Airbnb’s fee structure!
🚨 The Real Question: Do hosts simply pass this extra expense on to guests (and risk losing to competitors still on the split base fee model), or do we eat the cost ourselves, or split the difference —paying even more to Airbnb just for the privilege of using their platform?
Either way, it’s a lose-lose for hosts and/or guests. Airbnb’s Host Base Fee might look like it’s better for everyone, but in reality, it’s just another way for them to pad their own bottom line—leaving both hosts and guests paying more.
