Host-only fees will be mandatory for software connected (API) hosts in Croatia and Greece starting on 1 September 2020, with 60-day notice emails being sent out on 1 July 2020.
This pilot will require a 15% host-only fees (HOF) for all software connected (API) hosts in Croatia and Greece. HOF were previously required for all Traditional Hospitality listings while other hosts had the ability to opt out of the program. Starting on 1 September 2020, we will begin to roll out a mandatory host-only fee on a regional level for API connected hosts.
Airbnb's vision for the end-to-end trip is a marketplace without guest fees.
On 1 July 2020, Airbnb is providing a 60-day notice to API connected hosts in Croatia and Greece.
For all API connected hosts who are currently using host and guest fees (HOG) in Croatia and Greece, the email will provide a 60-day notice that Host-only fees will be locked on the current setting of 14%.
For API connected hosts who are not currently using HOF in Croatia and Greece, the automated email will inform the host they have been opted into the 15% HOF.
How it works
If an API connected host is active on Airbnb and is currently using HOF at 14% at the time of notification, the host will remain at 14% HOF unless they opt out, and any new listings will be grandfathered in at the 14% HOF.
If an API connected host is active on Airbnb and they are not currently using HOF at the time of the notification, the host can opt in at 14% but the rate will automatically increase to 15% on 1 September 2020.
For API connected hosts who become active after the notification date, they will be defaulted to 14% HOF for all new listings, but will be notified during the sign-up that they will be automatically migrated to 15% HOF on 1 September, 2020. New hosts can still opt out through 31 August, but will be automatically migrated to 15% HOF on 1 September.
Frequently asked questions
Why are Airbnb fees for API connected hosts higher than before?
In the past, Airbnb service fees were shared between the host and guest. Airbnb has made these changes because they heard feedback that guest fees made it challenging for professional hosts to accurately control their end rates while keeping their prices comparable across multiple online platforms. This is a fee structure change, not a fee increase.
Can an API host opt out of this fee structure?
No, not at this time. Starting on 1 September 2020, this feature will be standard for all software connected (API) hosts in Croatia and Greece.
How do you define a host in Greece/Croatia?
A host account in Greece or Croatia is determined when more than 50% of the listings associated with a host's ID are in Greece or Croatia.
If an API host chooses to connect to Airbnb outside of my API connection, can they opt out of this fee structure?
At this time, all hosts connecting to Airbnb through API software in Croatia and Greece regions will automatically be included in Airbnb's host-only fee structure. If an API host connects directly to Airbnb without using an API connection, they can opt for a different fee structure.
Why is Airbnb requiring this fee structure for API connected hosts in Croatia/Greece?
The new fee structure was developed by Airbnb in response to professional companies who asked to have more control of their final prices through a host-only fee and a more comparable fee structure to other platforms. Hosts with this fee structure find it easier to manage their prices and receive up to 17% more bookings if they price competitively.
Does this change benefit an API connected host?
Airbnb is implementing this new standard practice for API connected hosts as a strategy to specifically help their business to thrive on the Airbnb platform. This program allows for more control of API host prices and will make it easier to manage their prices across platforms. Unlike other online travel platforms, Airbnb does not charge credit card processing fees, so hosts always know what their fees will be.
Does the cancellation policy impact the HOF percentage?
Fees for Super Strict cancellation policies are currently suspended; however, any fees associated with specific cancellation policies in the future will be added on top of the HOF percentage.
Should API hosts just raise their prices to make up for this higher percentage?
API hosts continue to control the rate they set. While it remains up to them, research shows that raising their prices in this way may not lead to a competitive rate on Airbnb, which could result in receiving fewer guest bookings.
How will HOFs appeal to guests?
Airbnb will no longer add guest service fees to bookings at API hosts' listings. Removing the service fee will lower the price displayed to guests, and guests love to see lower and simpler prices.
In the future, will Airbnb offer a more flexible or broader commission range?
Airbnb believes that 15% is the most competitive commission in the industry. For the time being, Airbnb does not anticipate that this fee structure will change; however, if it does, Airbnb will absolutely let API hosts know.