Ready to dive into short-term rentals and looking for ways to cut down your Airbnb service fees?
Discover 2 straightforward yet highly strategic tips you can apply to minimize service charges. These insights will empower you to take charge of your rental venture. Numerous property owners have adopted this strategic approach.
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Short-term rentals have become a new, highly sought-after accommodation trend among travellers worldwide. It involves renting out one’s furnished apartment or a room to a traveller for a short period. The demand for this new type of accommodation has been steadily growing in recent years due to its affordability compared to traditional hotel stays.
In the second quarter of 2022, Airbnb reported exceeding 103 million Nights and Experiences Booked, marking its highest quarterly number EVER.*
(*source: news.airbnb.com financial results)
If you own a business in short-term rental, you probably know what Airbnb commissions are when pay around 14–16% for each reservation made on your apartment, which might probably be part of those 103 Million Nights from 2022. In this article, we are going to provide you with tips on how to cut down your Airbnb service fees and increase profitability for your short-term rental business and vacation rental.
Why Should You Cut Down Your Airbnb Service Fees?
Service fees can vary based on several factors such as the length of stay, type of accommodation, booking date, tenant requirements, additional services offered, etc. These fees cover operational costs, including continuous platform development, service improvements for hosts and travellers, and property security. Over just five years (from 2018 to 2022), aside from commissions taken directly from the accounts of property owners and clients, the booking prices on mainstream short-term rental platforms have increased by 16.4%.
What Fees Do These Platforms Charge?
These platforms charge commissions from both parties, known as shared fees and host-only fees. For every confirmed booking, Airbnb charges owners commissions including nightly rates, cleaning fees, etc. These fees often amount to between 14 and 16% of the total rental cost. Travellers, on the other hand, must pay an additional 3%. A detailed summary of the commission amounts is displayed on the total due before confirming the reservation, which will be deducted from the payment at the time of contract finalization. Note that you are not able to cut down your Airbnb service fees shown on your total bill at the time of payment.
How Can You Cut Down Your Airbnb Service Fees?
Although the service fees imposed by short-term rental platforms on host publishing listings are significant, they are an integral part of the platform’s business model and cannot be eliminated. However, there are several ways to reduce them:
If You’re a Traveler, Negotiate with the Owner.
You can negotiate a reduction on the total amount of your booking with your host before finalizing the contract. This approach can help you save on Airbnb service fees. Be sure to choose your booking date wisely, as rates vary. Sometimes, adding or subtracting a night from your booking can save you money, depending on the context. With new property owners entering the short-term rental market daily, they may offer you a discount in hopes of positive reviews on their properties and services. Indeed, customer reviews are crucial for their business reputation.
If You’re a Property Owner, Opt for Direct Booking Systems.
Opting for a direct booking system on your website is an effective way to bypass third-party commissions. Implementing this system gives you exclusive control over your rental pricing, booking, control over reservations, and a direct relationship with travellers – thereby you globally cut down your Airbnb service fees for both you and your travellers. Here at CALESSIA Digital, we specialize in creating and developing direct booking websites for short-term rentals. Based in the French Riviera – one of the most popular vacation destinations in the world where Airbnb service fees are no secret, we love helping entrepreneurs like yourself who are in seek of a solution to cut down on Airbnb service fees. Contact us today to learn more.
