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Airbnb Overhauls Its Pricing Model, Ditches Pesky Add-ons That Show Up At Check-Out

By Komal Banchhor
Published on : 04:50 PST, Jul 4, 2023

Airbnb Overhauls Its Pricing Model, Ditches Pesky Add-ons That Show Up At Check-Out

Cover Image Source: Pexels/Quang Nguyen Vinh

For many travelers, the allure of an Airbnb vacation rental lies in the promise of unique experiences and the comforts of a home away from home. However, the excitement can quickly turn into frustration when hidden fees and unexpected chores pop up during the booking process or upon check-out.

In response to such complaints, Airbnb has taken steps to address these issues and improve price transparency, making it easier for travelers to plan their trips with ease, as reported by Yahoo! Finance.

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The Ugly Surprise: Hidden Fees and Chores

Amy Smith and her husband stumbled upon a charming cottage nestled in the Vermont woods on Airbnb, a perfect location for their family vacation. The pictures were stunning, and the initial price seemed like a steal. However, hidden within the fine print was a hefty $150 cleaning fee and a list of chores that the guests were required to complete before checking out.

"It felt like the host was double dipping since we not only had to pay the cleaning fee but we were still required to do a significant portion of the cleaning ourselves," said Smith. This experience left the Smiths frustrated, and they are not alone.

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According to Jamie Lane, the chief economist at AirDNA, a leading provider of short-term rental data and analytics, numerous Airbnb users have expressed their dissatisfaction with unexpected fees and chores that eat into their vacation time. Some markets may even impose additional fees for essentials like sheets, towels, or heating a pool, leading to unpleasant surprises for guests.

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Airbnb's Response: Improved Affordability and Price Transparency

In December 2022, Airbnb rolled out a "display total price" button, a significant step towards improving affordability and boosting price transparency. This feature allows users to see the total cost of the rental upfront, eliminating the need to worry about hidden costs. Now, guests can make informed decisions about whether a property fits within their budget from the beginning of the search process.

Image Source: Pexels/Matthias Groeneveld

Additionally, Airbnb has made check-out instructions and requirements more visible to guests. The company aims to ensure that hosts set reasonable expectations and avoid unreasonable demands that could further inconvenience travelers.

Samuel Randall, an Airbnb spokesperson revealed that the company spent six months analyzing feedback from its community of guests and hosts, millions of customer service tickets and social media posts to identify areas of improvement. He added that it is now Airbnb's long-term approach to ensure every policy and process in the Airbnb experience is "simple, straightforward, and consumer-friendly."

Forbes Advisor Report: Extra Fees Still Impacting Costs

Despite Airbnb's efforts to improve price transparency, a recent Forbes Advisor report suggests that travelers staying at an Airbnb this summer can still expect to face an average of 36% in additional fees on top of the nightly rates. These fees can quickly add up, significantly impacting the total cost of the stay. For example, a $250-a-night beach house could end up costing $340 per night when extra fees are factored in, amounting to nearly $2,400 for a week-long stay.

The Cost Comparison: Airbnb vs. Hotels

While the extra fees may seem discouraging, Jamie Lane assures that Airbnb remains a more affordable option than traditional hotels, especially for longer-term stays. The short-term rental industry's demand has escalated during the pandemic, and with international travel and off-seasona bookings on the rise, the industry's revenue is projected to reach $71 billion in 2023, up from $39 billion in 2019.