Airbnb trying fee structure shift

Airbnb, which has typically collected a service fee from both hosts and customers is switching its European ‘professional hosts’ to a plan that will collect a larger fee from hosts and none from travelers.

While Airbnb lists a number of advantages to the shift (more ability for hosts to control pricing, better alignment with other booking software, customers able to know more easily the overall cost before clicking), a number of hosts have been quick to point out that the market may not allow them to increase rents enough to cover the difference.

The changes do not apply to hosts who are not considered ‘professional,’ but are looking to make some money by renting their apartments. They use a different set of tools which do not connect to industry-standard systems, and will continue to pay 3-5% to Airbnb while renters pay 15-20%. No word on whether the new structure will eventually apply to other parts of the world.

The shift may point the way to resolving another issue: Dutch courts have ruled that it is illegal for real estate and rental companies to charge both sides in the transaction, and it has had to refund fees to numbers of renters. However, it is also appealing based on an earlier EU court ruling that said the company is not in the real estate business but is a technology platform. A coalition of governments is asking the EU to reverse that ruling.

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