Airbnb has a problem and that problem is they’ve become too greedy. Their service fees are now so high that it’s really taken out all of the value at using Airbnb to find a place. So what am I talking about? In front of me I have the prices for two different listings and on one listing it’s 124 a night for a total of 247 for two nights.
But then you have a cleaning fee at 45 and a service fee at 41. And when you look at the total booking cost, this represents, these fees represent 25. 9 percent of the cost. And for five nights, that percentage goes down to 17. 5%. But that’s only because the cleaning fee remains the same. When you look at the service fee.
It’s jumped to now a hundred dollars. That’s too much. And so notice how the service fee continues to increase with each additional night, even though the service remains the same. So for another listing, the cost was 99 a night. So the total would be 198 for two nights. But then you have a 70 cleaning fee and a 38 Airbnb service fee.
And those two fees amount to 35. 3 percent of the total booking costs for four nights. Those fees amount to 27. 9 percent of the cost with 85 for cleaning fee and then 68 for. The service fee. So now when consumers are looking at Airbnb, they’re, they’re really hesitating. Whereas before there was value to be had, these service fees are, are so high along with the, the cleaning fees, which are charged by the host, that now it’s really starting to become a, a, a much more difficult decision because the value isn’t there, especially in light.
of the unpredictability of Airbnb. And so some of the problems include inaccurate listings. So, sometimes people are going to these different housings or places to stay and they’re finding out that… What is in reality doesn’t match the story that’s portrayed online. And along those lines, there could be cleanliness issues.
There might be safety concerns. So there might be no smoke detectors or the locks might not completely lock. Another big problem has been with the hosts. Sometimes the hosts are overly intrusive. Other times they are nowhere to be found and are difficult to communicate with. One other huge problem has been cancellation by the host.
So I say huge, not because in number, but because of the, the impact on the experience. Imagine booking somewhere and then arriving at this lodging and then only to discover that you can no longer stay there. Even though you had paid and made a reservation, so that there have been several reported instances of that happening.
Also, there have been disputes over security deposits and fees. There have been privacy issues where people have felt there’s inadequate privacy or that cameras have been on the property. There have been a lack of amenities, so things that people would consider essential aren’t available on the property.
There has also been. There’s also been problems with the neighborhood or the environment around the property. So sometimes the property will match what is presented online, but what surrounds it will be completely unexpected. So it might be a crime ridden area. It might be a bad area. Or there might be loud noises around the property and disrupting the guest’s experience.
So with all of those things now in consideration, when you have higher prices stacked on top of that, it starts to make, it starts to make consumers drift back to hotels. And why not? You have a standard experience standard quality. You know what to generally, generally expect. You can read the reviews online.
There will be a professional staff available 24 7 to assist with any needs. You really just getting back to, you know, what to expect from a hotel. And in some cases, the prices are going to be less than the Airbnb booking. So it then becomes a question. Well, why would I stay? At an airbnb. So I think all of these things, everything I’ve mentioned here really just gets back to value.
Originally, airbnb was doing really well because of the prices and people could find really affordable lodging for for their visit. But now that’s becoming less and less the case. And even affordable lodging is on the more expensive side because of the cleaning fees and the Airbnb service fee. So I think Airbnb has lost a lot of its momentum and a lot of its traction.
And maybe even in the decline now. Because of its continued increase in fees, and so the service fees are now, they usually, what I’ve read is they’re now between 14. 2 percent and 16%, and I’ve read that hosts have said that their once popular bookings now receive less and less attention because of these increased fees.