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Concierges & real estate agencies: should cleaning costs be increased on the platforms?

Here is the transcript of the video:

Hello and welcome to the J’affich Complet channel. I am Clémentine , strategic pricing manager at J'poster Complet. Today, we are going to see together how to increase our households on the platforms. Because, if you don't know, platforms such as Airbnb and Booking take commissions on your cleaning costs.

So, it's true that cleaning costs are a burden that cannot be reduced, and that it is extremely important to control well. And it's true that the platforms take from you the commission they take on the nights and on your cleaning costs. And it may seem trivial for a property for one night, but put together throughout the year, over numerous reservations and numerous properties, it can add up to a fairly large sum at the end of the year.

If I take a simple example, if I pay €25 in cleaning fees and they take away the commission, for example, from Booking of 17%, in fact, at the end, I have no more in my pocket than €20.27 for cleaning. So, I lose almost, well, even more than €4 in cleaning fees per night. And if we take these €4 in cleaning costs, let's imagine, you have a 70% occupancy rate, you lose more than €350 in costs over the year. And imagine, you have 10 properties, that’s more than €3,600. It's an amount that seems enormous when you see it like that.

So, to avoid finding yourself in this situation, what we advise you to do is increase your cleaning costs by the amount of the platforms' commission. So not just the amount of the platforms' commission, it's a little more, because with the magic of percentages, when we take a commission, finally, we increase on one side then we withdraw from the other side, and well, we always lose something. So, that’s why we advise you to increase it a little more.

When on Airbnb, you are on a 3% rate, you must increase your cleaning costs by 5%. When you are on Airbnb or Booking at 15%, depending on the city, you have to increase by 18% to land on your feet in the end. When you are on Booking at 17% commission, you must increase your cleaning costs by 21%. And there, it is very important to make this difference depending on the platforms.

Then how to set it up? When you have a channel manager , it doesn't always work the same way. Depending on the channel managers, we have the slightly more specific case of BS 24, which does not operate in the same way depending on the platforms. For Airbnb, you must put the cleaning costs excluding commission in the channel manager and then, via the multiplier coefficients, it will be sent to Airbnb. In fact, the cleaning fee plus the percentage of the multiplication fee that you have set up in the channel for the year.

For Booking on Beds'24, nothing is sent, you must configure the increased cleaning costs directly in Booking. For example, for SuperHote, the second channel that we use the most here, it's much simpler. In fact, you can't put anything from the platform, it doesn't actually synchronize on the channel to the platforms. We configure the increased cleaning fee directly on Airbnb and on Booking.

So, we still advise you to configure your cleaning costs in your channel if you have direct reservations. Since there, you will have to make the end customer pay for the cleaning. This cleaning in your channel will be used for your direct reservations.

Then, for other channel managers, there are also certain particularities. So, to recap, you have to remember that the platforms take commissions on your cleaning costs . And therefore, they must be increased according to the percentage of commission taken by the platform. And then, make this setting directly in your channel or in your platform depending on your settings.

There you go, thank you. I hope you enjoyed this video. In any case, don't hesitate to ask us questions or leave comments. And to support our work, consider liking our videos.

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