Airbnb - cleaning fee, service fee, occupancy fee....???

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F150HD
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Airbnb - cleaning fee, service fee, occupancy fee....???

Post by F150HD »

I am not a regular Airbnb user but year or two back I dont' recall all these 'fees' roughly increasing the cost of a stay by often nearly 30-50% in some cases.

Is this anyone elses experience?

Its to the point where its cheaper to get a hotel room and not deal with the hassle.

Image

Kinda frustrating as it's a nice option....but the FEES.....! :confused
Long is the way and hard, that out of Hell leads up to light.
AlphaLess
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by AlphaLess »

I think they don't yet have enough fees.

They should also have:
- booking fee,
- online viewing support fee,
- insurance fee,
- account closing fee.

/s
"A Republic, if you can keep it". Benjamin Franklin. 1787. | Party affiliation: Vanguard. Religion: low-cost investing.
AlphaLess
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by AlphaLess »

F150HD wrote: Wed Jun 27, 2018 9:24 pm Its to the point where its cheaper to get a hotel room and not deal with the hassle.
As an old-fashined capitalist and proponent for competitive markets, I *ALWAYS* make it a point to thoroughly research the market.
Thus, for me, 'is it cheaper' problem is being solved continuously, not once-in-a-while.
"A Republic, if you can keep it". Benjamin Franklin. 1787. | Party affiliation: Vanguard. Religion: low-cost investing.
student
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by student »

AlphaLess wrote: Wed Jun 27, 2018 9:43 pm I think they don't yet have enough fees.

They should also have:
- booking fee,
- online viewing support fee,
- insurance fee,
- account closing fee.

/s
Toilet paper fee.
Church Lady
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by Church Lady »

Kiplinger or Money or one of those magazines ran a feature recently comparing Airbnb/vrbo to hotel costs in different markets. Sometimes airbnb is cheaper, sometimes hotels are cheaper. The spread in pricing is quite wide, like up to 55%. It depends on the market. The magazine is probably still at your library if you want to look it up.

The fees cannot be seen until you use the Booking screen. Very sneaky!
He that loveth silver shall not be satisfied with silver; nor he that loveth abundance with increase: this is also vanity.
muddgirl
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by muddgirl »

My understanding is that the cleaning fee is set by the owner, the service fee is set by Airb&b, and the occupancy tax is set by the owner's local authority for short term rentals. It should be the same tax that you pay for a hotel room (which they also wait to disclose until you are on the booking page).

The first two fees have existed for the history of the site but the third fee is becoming much more common as cities rewrite their regulations to include short term private-party rentals.
blueman457
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by blueman457 »

muddgirl wrote: Wed Jun 27, 2018 9:53 pm My understanding is that the cleaning fee is set by the owner, the service fee is set by Airb&b, and the occupancy tax is set by the owner's local authority for short term rentals. It should be the same tax that you pay for a hotel room (which they also wait to disclose until you are on the booking page).

The first two fees have existed for the history of the site but the third fee is becoming much more common as cities rewrite their regulations to include short term private-party rentals.
[/quote

+1 that is my understanding as well.
muddgirl
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by muddgirl »

Additionally, AirB&B does include the cleaning fee in the price shown when you are browsing listings, and it shows both other fees on the listing page itself along with the total price for the requested length of stay.
retired recently
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by retired recently »

My wife and I typically prefer Airbnb to hotels as you usually get a better feel for the city. We have enjoyed using them all over the world and so far have not had any bad experiences.

In the early days, Airbnb was almost always cheaper but we also look at comparable hotel/motel rates and now Airbnb can be higher than a comparable hotel room due to the fees mentioned. Sometimes we choose the hotel, sometimes the Airbnb.
Freefun
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by Freefun »

student wrote: Wed Jun 27, 2018 9:44 pm
AlphaLess wrote: Wed Jun 27, 2018 9:43 pm I think they don't yet have enough fees.

They should also have:
- booking fee,
- online viewing support fee,
- insurance fee,
- account closing fee.

/s
Toilet paper fee.
Coming soon is one important one called Fee Maintenance Fee (FMF) which is used to pay for the time to identify the other applicable fees.

This is of course very necessary and will also be taxable hence the upcoming FMF TAX Fee (FMFTX).
Remember when you wanted what you currently have?
goGators
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by goGators »

Church Lady wrote: Wed Jun 27, 2018 9:48 pm Kiplinger or Money or one of those magazines ran a feature recently comparing Airbnb/vrbo to hotel costs in different markets. ...
I think this is the article http://time.com/money/5209426/travel-ai ... el-places/
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ResearchMed
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by ResearchMed »

Freefun wrote: Thu Jun 28, 2018 5:22 am
student wrote: Wed Jun 27, 2018 9:44 pm
AlphaLess wrote: Wed Jun 27, 2018 9:43 pm I think they don't yet have enough fees.

They should also have:
- booking fee,
- online viewing support fee,
- insurance fee,
- account closing fee.

/s
Toilet paper fee.
Coming soon is one important one called Fee Maintenance Fee (FMF) which is used to pay for the time to identify the other applicable fees.

This is of course very necessary and will also be taxable hence the upcoming FMF TAX Fee (FMFTX).
You can save a lot of time and just pay for that at Fidelity: Fidelity Advisor Materials Fund

:happy

RM
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Cheyenne
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by Cheyenne »

AlphaLess wrote: Wed Jun 27, 2018 9:43 pm I think they don't yet have enough fees.

They should also have:
- booking fee,
- online viewing support fee,
- insurance fee,
- account closing fee.

/s
And why not coat hangar fees and an annual membership fee? Also some kind of commission or licensing fee might be in order for allowing you to display their name and logo on you paperwork.
an_asker
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by an_asker »

F150HD wrote: Wed Jun 27, 2018 9:24 pm I am not a regular Airbnb user but year or two back I dont' recall all these 'fees' roughly increasing the cost of a stay by often nearly 30-50% in some cases.

Is this anyone elses experience?

Its to the point where its cheaper to get a hotel room and not deal with the hassle.

Image

Kinda frustrating as it's a nice option....but the FEES.....! :confused
They do need to pay those developers in San Francisco a fair living wage, don't they?

A year or so ago, I remember reading about this dude who got a job with airbnb for $250k. I'm assuming that's the norm in that area. Someone also forwarded me a link that $110k is the poverty line in the Bay Area (probably with a pinch of salt) :oops:
michaeljc70
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by michaeljc70 »

I have also noticed the increase in fees and accordingly have used Airbnb less. They are abusive in some cases.
Ecorp
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by Ecorp »

Still alot cheaper than Hotels if you dont need to be fancy. I use Airbnb almost exclusive. BTW if you have BOA cash rewards card they are giving 10% on airbnb
an_asker
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by an_asker »

Ecorp wrote: Thu Jun 28, 2018 9:50 am Still alot cheaper than Hotels if you dont need to be fancy. I use Airbnb almost exclusive. BTW if you have BOA cash rewards card they are giving 10% on airbnb
I think you're missing the point that OP is making! :oops:
Ecorp
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by Ecorp »

an_asker wrote: Thu Jun 28, 2018 9:52 am
Ecorp wrote: Thu Jun 28, 2018 9:50 am Still alot cheaper than Hotels if you dont need to be fancy. I use Airbnb almost exclusive. BTW if you have BOA cash rewards card they are giving 10% on airbnb
I think you're missing the point that OP is making! :oops:
How? OP said its a hassle and hotels are cheaper. When you look at Airbnb reservation it gives you a grand total with price break down, which you can do in 2 seconds from the App. Then you can compare to a Hotel. Its always cheaper in the locations I visit
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F150HD
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by F150HD »

Ecorp wrote: Thu Jun 28, 2018 9:50 am Still alot cheaper than Hotels if you dont need to be fancy. I use Airbnb almost exclusive. BTW if you have BOA cash rewards card they are giving 10% on airbnb
actually, its not cheaper from what I am seeing....as that is one reason I too was looking there for a recent trip.

With fees, the quoted 'room rates' I look at are all easily up to 50% higher when 'fees' are thrown in. Its an incentive to just stay at a normal hotel.
Long is the way and hard, that out of Hell leads up to light.
Ecorp
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by Ecorp »

F150HD wrote: Thu Jun 28, 2018 9:59 am
Ecorp wrote: Thu Jun 28, 2018 9:50 am Still alot cheaper than Hotels if you dont need to be fancy. I use Airbnb almost exclusive. BTW if you have BOA cash rewards card they are giving 10% on airbnb
actually, its not cheaper from what I am seeing....as that is one reason I too was looking there for a recent trip.

With fees, the quoted 'room rates' I look at are all easily up to 50% higher when 'fees' are thrown in. Its an incentive to just stay at a normal hotel.
Int resting? What area? I mainly goto Florida and San Diego beaches.
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HueyLD
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by HueyLD »

I also dislike hidden fees.

It is probably the worst in Las Vegas. A hotel may advertise a daily room rate of $99. But one can be expected to pay an additional $40/day for "resort fees" and "$10/ day for parking. Add taxes to the mix and $99 becomes $165.

I prefer that they quote a price that includes at least the resort fees that are virtually mandatory.
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3CT_Paddler
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by 3CT_Paddler »

Most hotels have all kinds of fees and taxes as well that easily add 30% to the price.

Some of those same taxes and fees are now being required by AirBnB to collect. Many AirBnB owners do have to pay someone to clean between visits.

AirBnB where it includes several bedrooms and a detached house is a different product/experience than a typical hotel. Do you expect it to be priced like a Motel 6? If you don't like the price for what you get, choose something else.

No offense, but I don't see how this is actionable?

PS I am not an AirBnB owner.
fireman
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by fireman »

Airbnb (and other short term rentals, Homeaway/vrbo, etc.) wins out for us despite the fees. We are a large family so we are almost always required to book 2 rooms. This alone usually makes a rental more economical for us.

Also, even if possible to fit into a single room (e.g., Hyatt Place or similar), this is only good for a maximum of 1 night because we are too crammed together. Also, we find that hotels are usually not conducive to hanging-out as a family. There is usually no dining table to sit around, nor common space within the hotel room to enjoy together. Additionally, Airbnb rentals nearly always come with a full kitchen, which is a key feature for us in making for an overall better stay anywhere. The kitchen allows for at least some meals (e.g., breakfast) to be eaten "at home."
Last edited by fireman on Fri Jan 31, 2020 1:30 pm, edited 1 time in total.
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F150HD
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by F150HD »

Ecorp wrote: Thu Jun 28, 2018 10:04 am Int resting? What area? I mainly goto Florida and San Diego beaches.
One example in Memphis. I put in a random July date.

Image
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ResearchMed
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by ResearchMed »

F150HD wrote: Wed Jun 27, 2018 9:24 pm I am not a regular Airbnb user but year or two back I dont' recall all these 'fees' roughly increasing the cost of a stay by often nearly 30-50% in some cases.

Is this anyone elses experience?

Its to the point where its cheaper to get a hotel room and not deal with the hassle.

Image

Kinda frustrating as it's a nice option....but the FEES.....! :confused
We had some vacation rental cabins, but never used AirBnB.
(We ended the business about 3 years ago, so that we could travel more without worrying about midnight calls if there was a problem, or just for an inquiry.)

The cleaning fees, to do it *right*, were always phenomenal, and we charged extra, per visit or per week, but we did not charge the full amount. (NO one would have believed that's what we paid. OTOH, we got rave reviews about "cleanliness", and quite a few thank you's along with comments about what the guests had encountered at other nearby properties before us.)
(We did not charge a percentage, because that would have penalized the longer stays vs. weekends, etc.)

The taxes were required: state and local sales taxes, and county "temporary occupancy" [e.g., hotel type] tax.
(We could have bundled that in, but since no one else did, it would make us look more expensive at first glance. Yes, these taxes added up. We suspect most other owners did not submit to the tax authority, and sure enough, the authorities cracked down with hefty penalties after a few years.)
I'm pretty sure this was all identical to the local hotels and motels.

The "service fee"? No idea about that.
Sure, we paid for a variety of professional services, especially as we were not local. However, that was no different, to us, than utilities, or real estate taxes, or landscaping, or even furnishings... No extra charges called "service" UNLESS the guest requested something special that we arranged. In those cases, we did not take a cut, and had the guest pay the vendor directly.

All I can add is that it was MUCH more expensive to run these, keeping things *nice*, than we would have believed.
Fortunately, we had one of the higher end properties with large capacity, and little competition, and we were full all summer, all holidays, and almost every weekend. Mid-week during school year was discounted for professional groups, and other "different" uses such as "home schoolers".

One way it remained a "good deal" for the guests was the ability to cook for large extended families, rather than taking everyone out for all meals, day after day. That alone can save a lot; we did that with our extended family for a few years, which is how this endeavor started.
And being able to put little ones to sleep "upstairs" or "downstairs", and having multiple areas to visit with each other, play games, ping pong, etc., and not be sitting on dressers in bedrooms to talk, etc...!
Plus private large hot tub, and private outdoor BBQ area, with table/chairs/loungers and fire pit, etc.

You'd need to compare the cost to several very large suites. With fully equipped kitchens... plus lots more.

Interestingly, we are reluctant to use these types of rentals, because we saw/heard much too much about how the other owners cut corners, etc. :(

We didn't participate with AirBnB when they started, because they wouldn't allow all of the contact to be between us and prospective guests, and we'd have had non-stop large "party groups".
VRBO et al., soon changed to a similar model and inserted itself much too much. By then our own advertising and word of mouth was fine. But we could *not* have "started out" successfully the way VRBO/etc., work now.

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F150HD
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by F150HD »

3CT_Paddler wrote: Thu Jun 28, 2018 10:17 am Most hotels have all kinds of fees and taxes as well that easily add 30% to the price.

Some of those same taxes and fees are now being required by AirBnB to collect. Many AirBnB owners do have to pay someone to clean between visits.

AirBnB where it includes several bedrooms and a detached house is a different product/experience than a typical hotel. Do you expect it to be priced like a Motel 6? If you don't like the price for what you get, choose something else.

No offense, but I don't see how this is actionable?

PS I am not an AirBnB owner.
I see dozens of threads on this board that are 'not actionable'. Are you seeking those out and posting there too?
Long is the way and hard, that out of Hell leads up to light.
an_asker
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by an_asker »

Ecorp wrote: Thu Jun 28, 2018 9:58 am
an_asker wrote: Thu Jun 28, 2018 9:52 am
Ecorp wrote: Thu Jun 28, 2018 9:50 am Still alot cheaper than Hotels if you dont need to be fancy. I use Airbnb almost exclusive. BTW if you have BOA cash rewards card they are giving 10% on airbnb
I think you're missing the point that OP is making! :oops:
How? OP said its a hassle and hotels are cheaper. When you look at Airbnb reservation it gives you a grand total with price break down, which you can do in 2 seconds from the App. Then you can compare to a Hotel. Its always cheaper in the locations I visit
My bad! I missed the comparison point. :oops:

BTW, I am learning too late about the 10% off - would've saved me a bunch!!
michaeljc70
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by michaeljc70 »

If you need multiple bedrooms, more space (living room), a kitchen or are staying a long time, that's when I think Airbnb is more useful. I really generally don't want to stay in a hotel room for more than a week or two. The fees (at least some) are more palatable over a longer rental period.
TravelGeek
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by TravelGeek »

3CT_Paddler wrote: Thu Jun 28, 2018 10:17 am Many AirBnB owners do have to pay someone to clean between visits.
So do hotels. Isn’t that part of the cost of doing business? Like, say, electricity, water, property taxes, insurance, ... what is the reason for breaking out cleaning into a separate yet mandatory fee?
michaeljc70
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by michaeljc70 »

TravelGeek wrote: Thu Jun 28, 2018 10:59 am
3CT_Paddler wrote: Thu Jun 28, 2018 10:17 am Many AirBnB owners do have to pay someone to clean between visits.
So do hotels. Isn’t that part of the cost of doing business? Like, say, electricity, water, property taxes, insurance, ... what is the reason for breaking out cleaning into a separate yet mandatory fee?
Because Airbnbs are typically only cleaned once per stay. Hotels have daily cleaning.
TravelGeek
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by TravelGeek »

michaeljc70 wrote: Thu Jun 28, 2018 11:03 am
TravelGeek wrote: Thu Jun 28, 2018 10:59 am
3CT_Paddler wrote: Thu Jun 28, 2018 10:17 am Many AirBnB owners do have to pay someone to clean between visits.
So do hotels. Isn’t that part of the cost of doing business? Like, say, electricity, water, property taxes, insurance, ... what is the reason for breaking out cleaning into a separate yet mandatory fee?
Because Airbnbs are typically only cleaned once per stay. Hotels have daily cleaning.
Ok, I suppose that is a reasonable explanation/justification. Thanks!
TravelforFun
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by TravelforFun »

If it's just the two of us, we stay in a hotel. If with family, hotel is not an option. Airbnb and Vrbo have so many properties and the free market controls the rates. A property can add all the fees it wants but can it compete with one a few houses away?

TravelforFun
moehoward
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by moehoward »

We do AirBnb and hotels just depends on price and convinance. As far as fees go, the bottom line is all that matters. Check out an advertised Hotel and they don't tell you what local taxes are. Some states have some very high hotel taxes. At the end of day its supply and demand.
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by tesuzuki2002 »

F150HD wrote: Wed Jun 27, 2018 9:24 pm I am not a regular Airbnb user but year or two back I dont' recall all these 'fees' roughly increasing the cost of a stay by often nearly 30-50% in some cases.

Is this anyone elses experience?

Its to the point where its cheaper to get a hotel room and not deal with the hassle.

Image

Kinda frustrating as it's a nice option....but the FEES.....! :confused
Their added fees have driven them non-competitive in the market place... I almost always find hotels cheaper now... AirBnB was great for several years... I haven't booked an AirBnB in a few years now... I always find a better deal...
muddgirl
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by muddgirl »

F150HD wrote: Thu Jun 28, 2018 10:22 am
Ecorp wrote: Thu Jun 28, 2018 10:04 am Int resting? What area? I mainly goto Florida and San Diego beaches.
One example in Memphis. I put in a random July date.
But if you go back one screen to the listings page, the price displayed for this rental would be $99 per night because AirB&B includes the cleaning fee so that you are making a fair comparison between rentals. The cleaning fee needs to be a separate line item in the cost breakdown because it is the same amount no matter how long you stay at a listing. So the additional fees that you don't see on the listing page is $29 on top of a $99 rental, or 30%. Just about the same as a hotel IME.
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by SmileyFace »

I've been renting houses for decades directly through realtors so was already used to paying these fees AND any state/local taxes prior to AirBnB adding them. Note a hotel will have the taxes as well.
In addition to a Cleaning fee and Service Fee, the rental places I went through in the past also required either a Security Deposit OR an Insurance Payment.

I'm a little miffed at NYC Hotels in the Times Square area as they have gone the way of Las Vegas and are now all charging a $25 "Destination Fee" on top of the advertised prices (and if you book the hotels with points you still need to pay these fees). Hopefully other locations don't follow suit.
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by novaboglehead »

F150HD wrote: Thu Jun 28, 2018 10:22 am
Ecorp wrote: Thu Jun 28, 2018 10:04 am Int resting? What area? I mainly goto Florida and San Diego beaches.
One example in Memphis. I put in a random July date.

Image
This is for a whole house in midtown Memphis. I put a random July date in Expedia for midtown Memphis and one room at the Best Western is $120. When you go to the reservation screen, you get $120 + $23.30 for taxes and fees. The Holiday Inn Express is on sale for $103. Oh no, the reservation screen added $20.28 in taxes and fees.

When you go to a hotel reservation website and put in a date and location, the website returns a price. When you go to reserve the room, you get a new total with taxes and fees.

This is all pretty standard. I don't see why anyone would be surprised at the Airbnb site. By including the cleaning charge, Airbnb has an added layer of itemization to their prices than a standard hotel room. If this bothers you, stay somewhere else.
edudumb
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by edudumb »

F150HD wrote: Wed Jun 27, 2018 9:24 pm I am not a regular Airbnb user but year or two back I dont' recall all these 'fees' roughly increasing the cost of a stay by often nearly 30-50% in some cases.

Is this anyone elses experience?

Its to the point where its cheaper to get a hotel room and not deal with the hassle.

Image

Kinda frustrating as it's a nice option....but the FEES.....! :confused
Cleaning fee is charged by hosts. Some hosts have it, some hosts don't.
Service fee is always there, and it's charged at a fixed % by Airbnb.
Occupancy taxes are charged by the county/ city collected through Airbnb. Some counties/ cities have it, some don't, depending on the agreement between those with Airbnb. Some just ban Airbnb all together.

I run/ use Airbnb for a few years now. If you can trust the hosts, you can ask to deal under the table to avoid the fees. Hosts pay a fixed % to Airbnb as well, and they worry about reviews. Otherwise, just ask the hosts to waive the cleaning fee/ offer discounts and say you'll keep the place clean. Sometimes it works, sometimes not, depending on hosts and on whether you're visiting at a peak period when hosts have more bargaining power.
bob13bob
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by bob13bob »

I host an airbnb, and i rarely rent them. airbnbs dont' usually make sense unless
-your stay is at least a few days, this reduces the cleaning fee spread over the unit.
-you want kitchen access that hotels don't offer. if you compare a airbnb vs ultra luxury hotel suite with kitchen, aribnb is much cheaper
- longer stays where you get washing/drying machines.
-amenities like full size tv (usualy wiht netflix or cable package) and full couch living room with unlmited fast wifi vs get nickled and dimed in hotels with lmited access
-if youre staying over a month, airbnb can really shine since occupancy taxes don't usually trigger
-parking and location convenience, parking garages/elevators can get old, many people prefer neighborhoods that easy to get in and out of near major freeway, multiple car parking is easy.
-backyard access. in nice weather areas, u like sitting on the porch/bbqing
-large properties for huge family type deals with 3-4 bedrooms keeping everyone staying and eating together. even 2bedroom / 2bath is good vs renting two separate hotel rooms.
bob13bob
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by bob13bob »

airbnb units can't clean as efficiently as hotels with full time cleaning staffs.
the cleaning fee discourages short term booking (which hotels are usually better suited). for an airbn host, a 1 night stay, the cleaning fee can surpass the cost of the unit.

the service fee goes to airbnb for running their company. usually part of the booking price also goes to them.

the occupancy fee is usually leveraged by the locality as a hotel tax (more cities are cashing in on this). hotels also add a bunch of fees.

I believe that if you put your date range for booking an airbnb, they do you give you a complete price including everything to be fair. This is more transparent than a lot of hotel comparison sites that add in the extra prices later.
hightower
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by hightower »

My wife runs an Airbnb room in the back of our house. She sets the price/night and the cleaning fee. The price per night is actually based on a recommendation by airbnb based on what our local market is doing, though she can override it if she wants. The cleaning fee is there because she has to spend a certain amount of time actually cleaning and re-setting the room before the next guest arrives. So, it's basically a reflection of her time commitment. You could build that into the price/night, but that's not how it's done and our room would look overly priced if we did it that way. Others use the cleaning fee to actually pay for a cleaning service. It's my understanding that it's still a lot cheaper to stay in our Airbnb room, then rent a hotel room downtown where we're located. You just need to compare numbers to what a hotel would actually cost you in the area, but usually airbnb is a better deal. I have noticed in some very competitive markets such as Hawaii, Los Angeles, etc, that the difference in price between airbnb and major hotels is minimal.

The other fees have nothing to do with the owners.
TravelGeek
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by TravelGeek »

DaftInvestor wrote: Thu Jun 28, 2018 12:22 pm I'm a little miffed at NYC Hotels in the Times Square area as they have gone the way of Las Vegas and are now all charging a $25 "Destination Fee" on top of the advertised prices (and if you book the hotels with points you still need to pay these fees). Hopefully other locations don't follow suit.
I agree that destination and resort fees are a sad joke. Isn't every place I travel to a destination? And usually the "benefits" one receives for the resort fee are either not desirable, relatively worthless (free phone calls? newspaper?) or already available to elite members of the loyalty program.

But I just wanted to point out that not all chains charge resort fees for award bookings. Hyatt and Hilton don't as long as it is a 100% award (not points & cash). Hyatt also waives it for Top Tier elites (Globalists). Marriott on the other hand seems to charge the fee no matter what.
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GoldStar
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by GoldStar »

TravelGeek wrote: Thu Jun 28, 2018 1:41 pm
DaftInvestor wrote: Thu Jun 28, 2018 12:22 pm I'm a little miffed at NYC Hotels in the Times Square area as they have gone the way of Las Vegas and are now all charging a $25 "Destination Fee" on top of the advertised prices (and if you book the hotels with points you still need to pay these fees). Hopefully other locations don't follow suit.
I agree that destination and resort fees are a sad joke. Isn't every place I travel to a destination? And usually the "benefits" one receives for the resort fee are either not desirable, relatively worthless (free phone calls? newspaper?) or already available to elite members of the loyalty program.

But I just wanted to point out that not all chains charge resort fees for award bookings. Hyatt and Hilton don't as long as it is a 100% award (not points & cash). Hyatt also waives it for Top Tier elites (Globalists). Marriott on the other hand seems to charge the fee no matter what.
This doesn't appear true when I try to book.
For example - look at "Hyatt Centric Times Square New York".
25,000 points per night it says. But when you go to book you will see "A daily destination fee of $25 (subject to change) will be added to your rate" and then the amount comes up (with taxes on top of the $25 per night) along with the points deduction.
Perhaps you don't see it because of your status level - but I do.
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by TravelGeek »

GoldStar wrote: Thu Jun 28, 2018 2:40 pm
This doesn't appear true when I try to book.
For example - look at "Hyatt Centric Times Square New York".
25,000 points per night it says. But when you go to book you will see "A daily destination fee of $25 (subject to change) will be added to your rate" and then the amount comes up (with taxes on top of the $25 per night) along with the points deduction.
Perhaps you don't see it because of your status level - but I do.
I don't have globalist status. I think this might be explained by Hyatt IT deficiencies, though. They might simply not have bothered to implement all the rules in their web UI.

https://help.hyatt.com/en/hyatt-terms/w ... ms.html#/B
12. Waiver of Resort, Destination, or Facility Fee on Free Night Awards. Resort, destination, or facility fees, where charged by the applicable hotel or resort, will be waived for Members redeeming a Free Night Award. This benefit is not valid at any Hyatt Residence Club resort or M life Rewards destinations. This benefit applies only to nights for which the Member has redeemed a Free Night Award. This benefit does not apply to any Room Upgrade Award, Points + Cash Award, Oasis Stay Credit, or any non-stay award (e.g., a Dining, Spa and More Award or a Future Meeting Credit (defined in Appendix E)). In some instances, a hotel or resort may charge other fees (such as a “service fee”) that are independent of any resort, destination, or facility fee charged by that hotel or resort. Any such fees will not be waived for Members pursuant to this benefit.
I burned down my account balance last year after the demise of Hyatt Gold Passport and redeemed a seven night award stay at the HR Maui. We were not charged the resort fee.

If you are on twitter and concerned about a particular property/redemption, I would send a screenshot to @HyattConcierge and ask them for explicit confirmation. And suggest they fix their website.
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by muddgirl »

I typically only use airb&b to book whole units or sometimes guest/carriage houses on an owner's property, and so I don't see it as competing with hotel stays. I see it as competing with resort condo rentals or VRBO.

It would be interesting if anyone on boglehead uses airb&b for its original function which was renting out single rooms in a house/apartment to compete with hotels? In that situation most localities would not charge occupancy tax.
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by pascal »

I think when AirBnB started out it seemed like an extremely relevant market where you have extra rooms near cool places that could be rented for substantially lesser than nearby hotels. I used AirBnB back then and I thought that it would be industry changing or I would be a lifelong customer.

I don't think prices fell (industry changed) but AirBnB prices certainly increased and so did the fees. The touristy places I frequent don't have any more AirBnB deals that I would use. Instead I just use hotels nearby, though impersonal there is a certain expectation of some standard for the price and everything else is a hit or a miss - same for AirBnB at similar prices.
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by GoldStar »

TravelGeek wrote: Thu Jun 28, 2018 3:25 pm
GoldStar wrote: Thu Jun 28, 2018 2:40 pm
This doesn't appear true when I try to book.
For example - look at "Hyatt Centric Times Square New York".
25,000 points per night it says. But when you go to book you will see "A daily destination fee of $25 (subject to change) will be added to your rate" and then the amount comes up (with taxes on top of the $25 per night) along with the points deduction.
Perhaps you don't see it because of your status level - but I do.
I don't have globalist status. I think this might be explained by Hyatt IT deficiencies, though. They might simply not have bothered to implement all the rules in their web UI.

https://help.hyatt.com/en/hyatt-terms/w ... ms.html#/B
12. Waiver of Resort, Destination, or Facility Fee on Free Night Awards. Resort, destination, or facility fees, where charged by the applicable hotel or resort, will be waived for Members redeeming a Free Night Award. This benefit is not valid at any Hyatt Residence Club resort or M life Rewards destinations. This benefit applies only to nights for which the Member has redeemed a Free Night Award. This benefit does not apply to any Room Upgrade Award, Points + Cash Award, Oasis Stay Credit, or any non-stay award (e.g., a Dining, Spa and More Award or a Future Meeting Credit (defined in Appendix E)). In some instances, a hotel or resort may charge other fees (such as a “service fee”) that are independent of any resort, destination, or facility fee charged by that hotel or resort. Any such fees will not be waived for Members pursuant to this benefit.
I burned down my account balance last year after the demise of Hyatt Gold Passport and redeemed a seven night award stay at the HR Maui. We were not charged the resort fee.

If you are on twitter and concerned about a particular property/redemption, I would send a screenshot to @HyattConcierge and ask them for explicit confirmation. And suggest they fix their website.
Thanks for this. Next time we book via Hyatt we will call (versus using online booking).
I did call Marriott and, as you stated, found out they don't remove the fees for anyone (So a free night in Times Square is actually $25 per night for the destination fee plus another $60/night if you have a car. No number of points can cover these - I would think they would be happy to remove another 50,000 points/night from my account to waive these fees but they just wouldn't do it).
renue74
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by renue74 »

pascal wrote: Thu Jun 28, 2018 3:41 pm I think when AirBnB started out it seemed like an extremely relevant market where you have extra rooms near cool places that could be rented for substantially lesser than nearby hotels. I used AirBnB back then and I thought that it would be industry changing or I would be a lifelong customer.

I don't think prices fell (industry changed) but AirBnB prices certainly increased and so did the fees. The touristy places I frequent don't have any more AirBnB deals that I would use. Instead I just use hotels nearby, though impersonal there is a certain expectation of some standard for the price and everything else is a hit or a miss - same for AirBnB at similar prices.
+1

When I travel for fun, I do include AirBnB in my search along with the hotel groups. But, I have a family of 4. So, I'm not searching for an AirBnB room...I need the whole property. In the popular larger cities, there are little to no AirBnB deals.

We have about 25 AirBnb properties in our town. (60,000 population) The properties are actually deals. You can find a 2 bedroom condo or house for about $90/night. The local hotels run about $100 to $150.

So it greatly depends on where you are going.

Also you have to watch out for same listing across different websites. We just went to Maui and I searched AirBnB, VRBO, etc. and would see the same condos across all the sites. Because AirBnb service fees were higher than VRBO, the condo might be an extra $30-$50 per night higher.

I like the AirBnB concept. In fact, in July, we are going to put a 3 bedroom bungalow on AirBnB full time. Instead of renting to tenants, we're going to test for 12 months with AirBnB. On paper, it looks like we could get 30% more profit than a single tenant...but that's yet to be determined.
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by Ecorp »

F150HD wrote: Thu Jun 28, 2018 10:22 am
Ecorp wrote: Thu Jun 28, 2018 10:04 am Int resting? What area? I mainly goto Florida and San Diego beaches.
One example in Memphis. I put in a random July date.

Image
Ok comparing to a hotel that's 2 rooms. You can get 2 hotel rooms for 120 total?
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Re: Airbnb - cleaning fee, service fee, occupancy fee....???

Post by 4nursebee »

The bulk of these fees are set up by the owner, not Airbnb. Airbnb has a service fee they collect from the renter, they also take some from the owner fee. Other fees are as mandated by taxation such bureaus. Anything else like the cleaning fee is from the owner.

We have rented out on Airbnb since likely the first 6 months they were in business. Same price, no fees. Cheaper than hotels. In a better market we would charge more. Likely those that charge much are in demand, same goes for fees.

So go to country living in NC and you get a room for $49. Go to DC during Obama inauguration, pay $400 a night for a closet, 5 night minimum.

Low listing price attracts attention, kind of like a loss leader at a store. Fees get what someone wants.
Also, such fees are likely one time things, not per night. Longer stays cheaper.
Last edited by 4nursebee on Fri Jun 29, 2018 8:15 am, edited 1 time in total.
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