OUTSMART THE AIRBNB HOST FEE

Updated: Feb 25, 2021

HOW TO MANAGE THE NEW AIRBNB HOST FEE WITHOUT SACRIFICING REVENUE

 

Beginning November 1, 2020, Airbnb will be updating their pricing structure to waive guest fees and automatically charge the standard 15% commission to the HOSTS. This change in their business model provides a unique opportunity for Airbnb to differentiate themselves from other OTA platforms with the ultimate goal of shifting market share and driving revenue in time for their IPO in December.


On the surface, the shift in commissions appears to only benefit Airbnb and the traveler leaving HOSTS with less profits and at the mercy of Airbnb’s ongoing changes. However, with knowledge comes power and with proper preparation the HOST can benefit from this as well.


REVENUE MANAGE

Gone are the days of seasonally revenue managing listings based on historical peak travel days and months. Ensure your listings are revenue managed on a consistent basis, taking into consideration market trends and pricing. With the new Airbnb model in place, factor the 15% commission into the average daily rate instead of highlighting it as a separate fee. Be the leader in the market and promote the value you offer with no hidden fees.


OPTIMIZE LISTINGS ON ALL OTA PLATFORMS

The best way to beat them is to join them! Each OTA platform highlights their service fees/inclusions to the end customer differently, sometimes leaving confusion as to what the actual daily rate amounts to. With Airbnb not charging customers the 15% service fee, highlight this same offer on other OTA platforms and incorporate the 15% service fee into the average daily rate. Highlight “No Service Fee” in the titles of your listings while also conveying your unique selling point. At TIENNE Consulting, we are here to identify marketing, revenue and operational strategies to elevate your presence in the market while generating revenue.


ULTIMATE GOAL - BOOK DIRECT

Don’t be at the mercy of OTAs and their pricing structures. Understand that OTAs are merely one avenue to bring exposure and revenue to your listing. Diversifying your revenue stream is imperative to the progressive growth of your company. The ultimate goal should be to eliminate commissions all together and develop a brand strong enough to capture a booking directly from your website. Acquiring a direct booking has lasting effects including the ability to control your branding and messaging while allowing for a continuation of marketing efforts past the initial transaction.


At TIENNE Consulting, we are dedicated to understanding your business and defining strategies that ultimately help it grow and prosper. Having worked in branded and independent hotels as well as short term and vacation rentals, we understand the importance of diversifying revenue sources while maximizing platforms to drive the most revenue out of them and be the leader in each market. A recent client experienced a 25% increase in revenue over a 3 month period due to our aggressive approach to marketing. Let us help your company achieve similar results. We are here to help alleviate the dependency on Airbnb and establish your brand effectively!


To learn more about optimizing your portfolio, email us at: sales@TIENNEConsulting.com


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