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Understanding Airbnb Service Fees for Hosts and Guests

The accommodation rental market is prolific. If you want to offer your property for short-term rental, Airbnb is a recognized platform with unmatched success. However, there are fees associated with this platform, both for owners and visitors. And this can have an impact on the profitability of your property. Let’s discover what these service fees are.

Airbnb Rental Fees

Airbnb has implemented various service fees that are shared between the accommodation owner and the visitor. The first fees are those related to the service fees themselves. These amount to 3% for both parties. There are also cleaning fees charged to travelers directly by the owner, pet fees (these are separate from cleaning fees), and fees for additional guests. It will also be necessary not to forget the security deposit, which will be paid by visitors in case of claims by owners, and administrative fees: VAT, tourist tax, local taxes…

Even though Airbnb is completely free to use, it has essential costs to operate. Listing advertisements, website maintenance, marketing, payment processing, user assistance, and social media management all incur costs. So the platform needs to generate revenue. This is why Airbnb charges service fees.

Shared Fees

Shared fees concern both the owner and the renter, although the latter pays the majority of the fees. The fee structure of Airbnb is therefore advantageous for owners. They can set a lower nightly rate if the fees associated with their accommodation are low.

Owners are generally subject to fees of 3%. However, in some cases, these may be higher. This is the case for accommodations located in Italy. Fees may also be higher if cancellation conditions are deemed too strict.

For travelers, service fees average around 12% (with a maximum of 14.2%). These fees are applied to the subtotal of the reservation price. This includes the nightly rate, cleaning fees, and additional guest fees.

There may be additional fees depending on the service used: vacation rental, seasonal rental, night arrival…

It should also be noted that VAT is part of the shared fees. VAT is found in most countries and will therefore be applied to booking fees.

Fees Reserved for Owners

Service fees can be entirely paid by the host. This is the case if you use a property management system (or channel manager). These are software programs that work as intermediaries integrated with Airbnb, allowing you to manage and publish your listings. These software programs directly calculate the fees (around 15%) and deduct the amount from the reservation rate directly from the platform. To use this software, you must have a VAT number. This allows owners to better control their pricing. It’s also a good way to avoid unpleasant surprises for visitors.

Fees for Visitors

The traveler must pay certain fees when making a reservation. This includes cleaning fees. To obtain excellent reviews, the cleanliness of the accommodation is crucial. It can therefore be very useful to entrust cleaning and tidying to third-party companies. And these fees will be added to the nightly rate. The owner can set the rate as they wish. These fees will be displayed on the advertised nightly price. It is also possible to bill them separately.

Fees for an additional traveler are also applicable. The accommodation may welcome more travelers than the standard capacity indicated. This rate is then freely set by the owner.

Local taxes should also be taken into account. The tourist tax may apply to certain areas. This tax is automatically collected by Airbnb.

As for the security deposit, it cannot be considered as an ancillary service fee. Indeed, it is not always charged to travelers. Airbnb informs the traveler that they may be charged this amount in case of observed damages.

To ensure that you properly account for Airbnb’s platform service fees and don’t forget anything, it’s possible to use a concierge service specialized in short-term rentals. If you wish to rent accommodation on the French Riviera (in Nice, Cannes, or even Villefranche-sur-Mer), you can use the services of Bnb Groom Services.

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