To all of our friends and partners in Australia and New Zealand,
It would be an understatement to say this year has been a challenge with all the surprises that Covid has brought to our short term stays industry. In order to minimise any more upsets to revenue performance and increase predictability, we wanted to make everyone aware that Airbnb is changing how they assess fees on listings in Australia and New Zealand.
Starting on 1st November, 2020 Airbnb will not charge the guest a service fee and will move the cost over to the host by deducting 15% from the host payout instead (more on how Airbnb service fees work here).
This change could have a significant impact on the revenue hosts will receive, so we highly recommend reviewing your rates in Beyond Pricing with the new fee structure. In this case we would typically recommend increasing your base price by the percent of the fee that the guest was paying previously.
As an example, if before 1st of November the guest was paying 12% and the host was paying 3%, then we would suggest raising your base price 12% to account for the decrease in guest fees on the total cost.
Additionally, should this fee structure alter overall demand for short term stays as a result, the Beyond Pricing algorithm automatically responds to market demand and will correct prices accordingly. Just be sure to review your base price and we will take care of the rest!
If you are looking for any more insight on revenue management strategy as the effects of Covid linger, please see our Coronavirus Tips. For more information on Airbnb’s fee changes in Australia and New Zealand, see here.
And finally, if you have any questions on how to change your base price, please refer to this page. If your question is not answered in this article, then please don't hesitate to reach out to us at firstname.lastname@example.org.
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