Split service fee or Simplified Pricing on Airbnb. What's best for your short term rentals business?

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Күн бұрын

⚠️📈 Stop Lowering Your Price to Get More Reservations - Join my Airbnb Pricing Workshop for $47 👉www.strpricingworkshop.com/ ⚠️📈
🛌 Check out Host Away 👉www.hostaway.com/?afmc=1s&utm...
If you're able, should you switch to Airbnb's Simplified Pricing? Or should you stay with the current Airbnb service fee split of 3% on the host side and 5-20% on the guest side?
With Airbnb's Simplified Pricing you, as the host pay 15% to Airbnb and your guest pays nothing.
Will this generate more money for your short term rentals business?
Are there any drawbacks to using Airbnb's simplified pricing in your Airbnb business?
👉👉 Check out my Instagram for even more Airbnb tips, tricks and best practices for new hosts! 📸📸 Follow me: @airbnbuncovered
Learn 📚more about me at 👉👉👉 www.airbnbuncovered.com/
Timestamps ⏱
0:00-3:10 - Key questions to ask before you switch to Airbnb's Simplified Pricing
3:11 - 4:25 - How split service fees on Airbnb work
4:26 - 6:34 - How simplified pricing on Airbnb works
6:35 - 7:34 - Why switch to simplified pricing on Airbnb
7:35 - 9:14 - Drawbacks to simplified pricing on Airbnb
9:15 - 10:59 - Advantages to simplified pricing on Airbnb
11:00 - 12:48 - Tips for implementing simplified pricing on Airbnb
**This post contains affiliate links and I will be compensated if you make a purchase after clicking on my links.

Пікірлер: 44

@FamilyTravelLife Жыл бұрын

Love love love how you explain things! Thank you so much!!!

@AirbnbUncovered Жыл бұрын

You are so welcome! Thanks for watching!

@SunniLove123 2 жыл бұрын

Ooo yes! Been looking for a video like this! Thank you!!

@AirbnbUncovered 2 жыл бұрын

Glad it was helpful!

@HauoliDad Жыл бұрын

Great video, thanks for the information!

@AirbnbUncovered Жыл бұрын

Glad it was helpful!

@Mizz.Person 2 жыл бұрын

Thank you for these informative videos! :)

@AirbnbUncovered 2 жыл бұрын

You are so welcome!

@Self.reliant 2 жыл бұрын

I have switched when it came out. But it came out after we closed for the season. We open in April for the summer season but we are building a tiny house for year round rentals. Only time will tell if it's better

@AirbnbUncovered 2 жыл бұрын

Thanks for the quick reply. Keep us posted how you do this summer with it!

@Self.reliant Жыл бұрын

@@ivantejeda trying to get subs from another person's channel is kinda crap.

@villaakasaubudbali9766 2 жыл бұрын

Hello! Thank you for the video and I wish I shared your enthusiasm. So far it looks like AirBNB keeps 24% and not 17% and they even take a cut from the Taxes I charge (to pay tax!). I never asked for this change, I just so happened to want to use channel manager. Is there a way to revert this? Any idea?

@AirbnbUncovered 2 жыл бұрын

It also depends on your location. Other areas around the world have higher service fees - 24% as you say. It depends on the country you live in and what fees/taxes Airbnb needs to collect on their behalf.

@jasonshy3554 2 жыл бұрын

Matt, Help! Lol.. We just listed our Airbnb. It’s doing well. However I’ve noticed some places near me have a very low ADR on the search page when you just search the area with no specific dates. How are they doing this? Once you click on specific dates the rates shoot way way up. I feel like they have such an advantage bc it looks like they are so much cheaper than us. Where In reality we are the virtually the same.

@AirbnbUncovered 2 жыл бұрын

If you noticed the prices shooting up, guests will notice that too!

@downupsidetoside 2 жыл бұрын

Simplified!

@AirbnbUncovered 2 жыл бұрын

Thanks!

@cocoon7799 Жыл бұрын

Do you have an update on this? Has the Simplified pricing worked out well for you? Everything I've read from other hosts has been negative. thank you!

@AirbnbUncovered Жыл бұрын

I have been using it but it kind of depends on what your market is doing. If your competition isn't using it, then you can look as if you are priced higher for the basic price. If your competition IS using it, then you might look off because you have these extra fees.

@cocoon7799 Жыл бұрын

@@AirbnbUncovered Thanks for the reply! It doesn't look like any of our competition is using it at this time so we'll stick with the split. But one thing is weird... I know some of the competition I looked at use Guesty and I thought if you used a service like Guesty you had to use the Simplified pricing.

@singh0833 2 жыл бұрын

"it could be a "17%" increase in bookings for your listing," do you have a link for this stat?

@AirbnbUncovered 2 жыл бұрын

Sure, check out this Airbnb link - www.airbnb.com.au/d/simplifiedpricing-anz?preview=true

@TheCliftonBali Жыл бұрын

Hi, I am using channel managers and got a service host fee (15% + VAT). I tried to change it, - on Account - then click on Payments and Payouts and then Service Fee. But i get a respond saying that " Changes made here won't affect the listing that sync from Cloudbeds / My allocator". Please help me how to change for service host fee to 3% + VAT

@AirbnbUncovered Жыл бұрын

I'm not familiar with Cloudbeds. You could go into your channel manager and see if their is a service fee setting there. Some channel managers only allow the "simplified fee" (i.e. the host pays the full 15% fee). They don't have an option for the split fee. So I would check with your channel manager and see what they have going on in the backend.

@abigailhowson2900 9 ай бұрын

What if you have a llc will that be a active business. How does that work please explain

@AirbnbUncovered 9 ай бұрын

You'll have to tell me a bit more. Are you talking a business license? That is up to your jurisdiction.

@SterlingSansing 6 ай бұрын

From my experience everyone of my guests paid a 14.2% fee. HOT Taxes are 17% where I am so when the host takes on the the whole 14% fee the guest ends up paying more overall because local taxes are calculated based on the nightly price and when you increase the nightly rate say 15% they pay more HOT taxes as opposed to having a lower nightly rate and they pay the 14.2% fee on Airbnb. So they save about 3%.

@AirbnbUncovered 6 ай бұрын

Good point!

@chankisscoversong Жыл бұрын

May I ask why my listing occupancy taxes and fees are way more than other listing in the same area For example We both live in toronto and my guest fee comes $27 and my occupancy taxes and fees comes $28 But when I check other listing in the same area guest fee is $27 but occupancy taxes comes like $7 So which means the guest will pay less to book it to his listing than mine. So I’m confused if I should register for GST/HST

@AirbnbUncovered Жыл бұрын

If you do not give Airbnb your GST/HST #, they will charge GST/HST on all of your bookings and remit it to CRA for you. If you DO give Airbnb your GST/HST #, then it's up to you to decide if you are going to charge GST/HST. Check with your accountant in any case as to what is best for you.

@chankisscoversong Жыл бұрын

@@AirbnbUncovered thank you for your information

@palatodorova7563 2 жыл бұрын

Hi there :) I have a question. Why smo hosts in the same area have no service fee, while I have a really high one?

@AirbnbUncovered 2 жыл бұрын

Thanks for the comment. The most likely answer is that some of the other hosts have gone to the simplified fee structure (where the fee is built into their nightly rate) while you are still using the split service fee (host pays 3%, guest pays 14%).

@palatodorova7563 Жыл бұрын

@@AirbnbUncovered and how can I change mine fee structure?

@cloecadiz5879 Жыл бұрын

Once you switch to Simplified Pricing, is there an option to go back to split-fee pricing?

@AirbnbUncovered Жыл бұрын

You should be able to. Go to your profile pic, click on it, then click on Account - then click on Payments and Payouts and then Service Fee.

@angeliqueburstrom5634 2 жыл бұрын

What happens next year when you want to increase your rate. This is not a sustainable model.

@AirbnbUncovered 2 жыл бұрын

Why not? You won't have the extra service fees on top of your total.

@lisaginder834 2 жыл бұрын

Do you still use hostaways?

@AirbnbUncovered 2 жыл бұрын

I do!

@user-oi8oj2iv5k Жыл бұрын

simplified pricing

@AirbnbUncovered Жыл бұрын

Great! How has that been working for you? Do you like it more than the split fee? How do you recoup the fee? Raise your prices?

@user-oi8oj2iv5k Жыл бұрын

@@AirbnbUncovered we are new to AirBnB and decided to start our listing with the simplified pricing. I personally dislike the added fees. We increased our rate to cover the fee.

@AirbnbUncovered Жыл бұрын

Great!