It's confirmed Airbnb is changing the amount of its commission: 14%? 15%? 17%? 18%? We share everything you need to know if this change and what should be done with this information for your prices and your Airbnb rentals.
Hello everyone, welcome to today's new live, we are going to talk about a subject that is causing a lot of ink to flow at the moment: what will be the change from Airbnb on its commission on December 7, it This is the date Airbnb charges commissions.
This is a subject that has been discussed a lot on our private seasonal rental group so don't hesitate to join us if you want to talk about all this, talk with people who have experience dealing with these subjects on a daily basis. I put the link right at the bottom so don't hesitate to click to join us welcome to you if you have any questions about this new method of Airbnb commissions what is needed, while it is It already shows what the amount will be, what it is about and how it should be understood. We hear that it goes to 15% we also hear that it goes to 18% so if you ask the question of what this change will really be, is it true and what should be done? of this information, well you are in the right video we will answer this question.
I would like to take this opportunity to thank Jordan and Alice who asked me this question so that I could deal with it today so it's always a pleasure, thank you for suggesting the subject because indeed it is a subject which raises questions and about which there is something, a few little things to know. So there is also one thing that I don't say, don't hesitate to subscribe to the "I'm showing full" YouTube channel so you are alerted as soon as we are live or as soon as I post a news video and it allows you not to miss any of his tips that I share every day so today is going to be the last day of the week in quotes what I do one live per day from Sunday to Thursday and well that allows you indeed to the subscribers, if you are not necessarily available at the time of the live at the time when I turn on the camera to talk to you about being able to watch the videos later and not to miss anything, tips to increase your figure business.
So the subject that animates us today is this famous Airbnb commission, this change in commission on Airbnb. Jordan realism 10 apparently we go to 18%, what about it, is it true, did you have more precise information and what should we do with that. So Airbnb today the first point to have in mind I had participated in an Airbnb intervention in Guadeloupe and Martinique, an event called welcome at home which is organized by Mehdi, who organizes that's wonderfully good. I encourage you to go and see on the internet where it's like at home, it's an event for seasonal rental companies which is really extremely interesting with only speakers really, I was going to say that at peace, but that's not a word very French, but who are really experienced on their subject. Finally I had an incredible time and we were lucky enough to have Airbnb who were present and in fact what we were told yesterday was well said on the commission because what we all know is that today Today Airbnb tells us 14% commission. The reality is a little more subtle, what Airbnb shares with us is in fact something extremely vague, of course there are calculation methods which can vary but it can vary a priori mainly depending on the amount; it can also vary depending on location. So on that there is no desire to be transparent, to say the least, to the extent that in fact even this poor young woman who was there found herself really helpless to answer the question. I think that with all the good will in the world the mechanism itself is not simple and that's because in Airbnb's strategy there are no intentions to share the calculation method behind it. So at the time when we asked the question what AIBNB's commission rate really is, the answer was, the answer given by Airbnb was extremely vague.
Now as we usually say here what is the most common is a 14% commission and there is in fact a letter which was shared with other Airbnbs a letter which was shared around the start of the school year which indicated to other than that the commission was going to change and that the percentage went from 14% to 15% now it comes on December 7 and there is an additional subtlety and there I thank you Eric, Eric says majo so I hope I'm scratching not your name but who alerted me to something that I hadn't actually noticed and so after that I did my calculations and I said to myself, yes, Eric is absolutely right. So thank you to you you see this video thank you to you in fact on this percentage of commissions there are traps: the first trap to have in mind is why Jordan and Alice told me is what it is 18% in fact when I redo the calculations in fact what Airbnb does is that they apply to this day they apply 14%, you will see it's a bit it's a bit triki as the English would say they apply 14% on the value including tax of the stay and cleaning therefore what the traveler is supposed to pay for stay and household they apply this 14% directly on the amount of the two but this amount does not give tax including tax, it is this amount - there gives an amount which he considers excluding tax and he adds a VAT on top which means that in fact it amounts to 14% it amounts to 17% and at 15% it amounts to 18%. So that's why you were able to hear about all these varied percentages, they're not false percentages, it's really what's useful is that historically we were at 14% we go to 15% and except that in reality if we take the sum including tax of what Airbnb deducted from us represents 18%.
I am opening a parenthesis because I missed, I was not 100% complete on what I specified on the historical functioning of the commissions which I tell myself that perhaps some of you are in this situation there when I say that before we were at 14% and now we are going to 15%, what you need to know is that there was in fact historically 2 functioning it is true that in our rental contacts seasonal workers at "I'm displaying full" in general we have rather the operation, the second operation which in fact consisted of being debited 14% of the sum in order to take care of both our guest commission and the commission travelers, this was the model that was most used by professionals in general in a way that the seven parties would do, which was as transparent as possible for the traveler. It was the most professionalized method, that's why I talked about it from the start of the 14% which becomes 15 but what you need to know and sometimes you don't realize without paying attention, it is possible that you have this other operation which consisted in fact of only taking charge of the upper part of the commission, that is to say 3, a little more than 3% and that the traveler is also on his side a percentage of commission which was applied to it and if I remember correctly it was around 12% which meant that when the traveler arrived to make a reservation he had the price of the stay that you demanded the price of cleaning plus additional costs of reservation fees which are fees that went directly to Airbnb in addition to the amount that you gave yourself so historically we had these two operations, there a less professional operation we will say we only took charge of our own host commission of one a little more than 3% and a second operation which was more the operation of professionals or in fact we took care of both parties directly and we had a commission of around 14%.
These two operations are completed, it is really a unique operation which will be put in place from December 7 and this operation consists of really having 15% for everyone without having this dissociation in fact between the commissions. So here is the summary of are we really going to have a change or not what will this change be compared to the history and now what will happen tomorrow so here it is technically to be very clear we go from 3 or 14 % in the past now we will all have 15% commission and the little trap once again thank you Eric, the little trap on which you still have to be hyper vision is that there you have a 15% in value excluding taxes 15 % of your tax included which is tax free and Airbnb allows itself to add VAT on that. Now here is the question I would not say the most important but almost it is what do we do with this information what do we do with it now we say ok it changes and it is also a question raised, Eric rightly it changes but what do I do, do I put all contempt and what do I do for the household. The cleaning moreover like sharing earlier but it is important to emphasize this point, the cleaning which is also in the cut of the commissions in fact which enters into the calculation of the commission for you also take the commission on the cleaning.
So what do we do with this information, in fact it all depends on how you construct your price grid at I display in full how we do it we have a pricing which is a direct pricing and then we will increase our prices per sales site which results in a different price on the direct site then different on the Airbnb site and again different on booking. The booking commission being higher than that of Airbnb we therefore have a pricing which is gradual it is more expensive on booking but at the same time it is the site on which we can expect the best average prices so it does not matter . When we are in this situation, if you make your prices like that, this is what we recommend, in fact, you are in a situation where you can very simply readjust your percentage increase for the prices that they go on Airbnb, therefore on that's no major difficulties so here I'm talking about a situation in which you have a channel manager which is software that will take your prices and send them to the different information sites if you don't have one the logic is the same it's just that you will change your prices directly on the Airbnb website; This is for this way of, this is for the way of doing prices so this is something that you can put in place just change it.
The second question is also a question that we asked ourselves on our side, so with this VAT story, what do we do and what in fact should be increased by 18%? our prices when they go on Airbnb, the conclusion we reached and it's a fairly similar lesson for housekeeping, you'll see, but the conclusion we reached is that in fact we at I'm fully booked we think about our stay in any case in line with what we find on the sites but really in a global way, that is to say that we are going to do a competition study we look at what the market ranges are what are the prices from the largest to the smallest available on airbnb for example on the site and then I feel that I am embarking on an explanation that is not at all clear here so I will be readjusting my explanation so that it is a bit clearer even so, I felt myself slipping there.
How can we make it clearer, I know, today when we determine our prices on my full display in fact we are not going to think just about the price of the stay, in fact we are going to think how much the customer is going to pay, how much the customer is going to pay for two nights and in fact within that there is the commission, the stay, the cleaning and so in the end as we are guided by a market logic and after that we deduce from it if we want to achieve a stay at 300 euros for 2 nights I deduct 2.300 euros how much I take off for the commission how much I take off for cleaning and what is left for my stay. With this logic, ultimately it makes the debate of am I greater than 15, 16, 17, 18, a little less useful ultimately because this logic which is oriented which comes from the potential of market, it's really how much is waiting on the market and there, guarantees us to always be at the maximum of what we can ultimately do. So afterward it’s a game of communicating vessels. Here I hope this version of explanation will have been a little bit clearer and so I will end by answering on the housekeeping part, in fact on the housekeeping part the logic which is a little bit similar is to say that if we talk about cleaning perhaps when I make a reservation on Airbnb as the commission with VAT is a little bit more important, it will perhaps deny my cleaning a little but ultimately if we maximize as much as possible the amount we obtain from the stay is a game of communicating vessels and therefore good or bad it is the same. The only thing is that if you have a lot of one-night stays, losing a little money on cleaning every week at the end can be impactful, so in these cases the scenario really super fundamentalists would consist of saying to themselves, I am going to increase my cleaning a little so that even the commission which will be applied to the cleaning allows me to have the same amount to pay my service provider and it is totally independent of the value that I get from my stays from the value of the night itself if you do that there is just one point of vigilance to have which is that it is imperative that you ensure that you are not in the process of 'have an amount of cleaning which is prohibitive especially for the shortest stays if we start to arrive at amounts of cleaning which are really important both in relation to your competitors but also in relation to the price of your night you could quite have prices for a single night that are really extremely high. Because obviously when we only stay one night we have the price of the night but also the price of cleaning which will apply in full to one night so it can really add up to a huge amount, which is less true when for example we stay three nights and in which case we have the price of the three nights but the amount of cleaning which is added as an additional flat rate will obviously be divided between the 3 nights.
So that somewhat aligns this cleaning amount effect, that's it but if for example you have no or only a few nights' stay and in addition your cleaning amount is relatively reasonable compared to the competition and compared to the value of one night in your apartment or in your gîte at that time everything is fine no problem about that there, so that's what I wanted to share with you if you have any questions as always don't hesitate to let me know put them down.
Great so someone specified 14% tax obviously I may have been late in saying it, I'm working a little on the suspense so that the interest remains intact, but yes absolutely it's a very good point c It's 14% excluding taxes. Thank you very much for these details, some readjustments will indeed be necessary before this date of December 7. So the objective was really that, I thank you for your message, that was really it, to give you all the marbles, all the cards in hand, to on the one hand untangle the threads on this commission story which is a bit nebulous I also encourage you to redo the stools, take a reserve you had on Airbnb and see what that gives, see what that gives, try to redo the calculations to see if you fall back on what I just shared there and that's it. In any case, I needed to do it to be able to really understand the calculation mechanism, because at the beginning I was a little doubtful and then later when I saw the figures, yes, that's it exactly. do.
Question : So hello Elise, how can you be sure of the accuracy of the study you carried out in terms of pricing policy without surveying people directly, particularly when you want to offer a somewhat new product such as do not harm an apartment?
Answer : So that's an excellent question, listen, I think that in order not to hide anything from you, I'm going to keep your question in stock and answer it in full live because if I give a hasty answer there it will be a lot less interesting so I'm keeping this question in stock and it will be the subject of another live but it's a very good point and rest assured that you are not the only one to be in this situation, so listen I'll hear it I will respond with pleasure and thank you for the quality. And listen, I thank you, thank you for being there, it’s always a pleasure.
Here I hope it could have helped you I am then from before it was a little sorry perhaps for the no need to say it at the top at the beginning it is a point a little more technical and a little more advanced. So if for example you start your seasonal rental and you say but what is she saying Elise usually the live ones are a bit nice but then this was really quata, rest assured these are points which are a bit technical which will seem much less nebulous to you once you get started. For the moment don't worry too much about all that, today was a live plus for people who have already been active for several weeks several months and who really have their nose in all these subjects and for whom I think it will be much more evocative and much more telling so if you start don't be afraid it's normal that it seems nebulous to you. And with the progress of your activity all this will be much more much clearer, great, listen great if it suits you I'll see you soon for a next live on this subject.
I thank you and I thank you for being with me so the next live will take place on Sunday so if by any chance you have nothing planned for Sunday, I suggest that we meet again on Sunday. Until then if you wish to join our private group we only talk about subjects like this which are both interesting but also strategic do not hesitate to join I have put the link just below this live you can at done click to register if you put your email when registering I will send you the free book with the six mistakes not to make when you program these prices when you make your prices, so that's also interesting it's a good bedside book, unpretentious but good all the same and that's it, if you have any questions or if you have ideas for topics that you would like me to cover in future live shows of the next two videos, don't hesitate to write to me. reply to all the comments that I see so it will always be a pleasure to share that and here's to having new ideas for the next live shows between now and then. Take care of yourself, I'll see you Sunday for the next live.
💯Receive the free book by email (the 6 mistakes that make you lose money) by joining my private group on Facebook 💯 https://bit.ly/2KRS5WK
(don't forget to enter your email to receive the bonus)
⚠️ Subscribe to this channel and 🔔 click on the bell 🔔 to stop saying to yourself: “what was the channel that gave good ideas on prices? » https://bit.ly/2OLq0lx