Navigating Airbnb’s 15% Host Fee & Pro Strategies for Boosting Reviews
Welcome back to the Hosting Hotline! This is an Ask Me Anything where each week we’ll answer your questions on Airbnb, STRs, real estate, and everything in between.
Shannon asks:
I recently learned about Airbnb’s 15% fee for hosts using property management software (PMS). How does this impact my pricing strategy, and can I use tools like PriceLabs to account for it? Also, what’s the best way to encourage guests to leave reviews without overwhelming them?
In this episode, we dive into the critical topic of Airbnb’s 15% host fee and how it affects your bottom line. We also explore effective strategies to boost your review rate—an essential component of a thriving short-term rental business.
Understanding Airbnb’s 15% Fee
If you’re connected to a property management software, Airbnb automatically applies a 15% host fee to your bookings. This can significantly impact your revenue if not accounted for properly.
Dynamic pricing tools like PriceLabs can help you offset this cost. By applying a rate multiplier of 15%, you can ensure your guests cover this fee. For example, many hosts set this adjustment directly in their PMS or dynamic pricing tool. If you use a PMS like Hostfully or Hospitable, you may have options to apply this multiplier to specific platforms like Airbnb without affecting others such as VRBO or Booking.com.
This strategy not only ensures that you remain profitable but also makes your direct booking site more attractive to potential guests by highlighting the savings they’ll enjoy by booking directly.
Tips for Encouraging 5-Star Reviews
Shannon also asked how to improve guest review rates. Here are our favorite tactics:
1. Start Early
Introduce the idea of reviews at the beginning of the guest’s stay. Include a note in your welcome message emphasizing your goal of providing a 5-star experience.
2. Automate Your Messaging
Automated tools like Breezeway can send friendly reminders post-checkout, prompting guests to leave a review. A personal touch, such as referencing your small, family-owned business, can make a big difference.
3. In-Home Prompts
Place physical reminders in your rental, such as a magnet on the fridge or a framed note by the entryway. These prompts serve as gentle nudges to guests during their stay.
4. Make It Easy
Provide clear instructions or links for leaving a review. You can even create a simple template or offer a small incentive, such as a discount on a future stay.
Key Takeaways
Whether you’re adapting to Airbnb’s 15% fee or looking to boost your review rate, the key is being proactive and intentional.
- Adjust your pricing strategies using dynamic pricing tools to cover costs and remain competitive.
- Build a seamless review request process that starts early, incorporates automation, and meets guests where they are—both digitally and physically.
Shannon, thank you for your thoughtful question. We hope these tips help you navigate these challenges with confidence.
Thanks to everyone who submitted questions. To hear your voice on the show and send a question to Sarah and Annette, submit your burning hosting questions at: hostinghotline.com.
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