From now onwards, Airbnb guests will now be able to see the total cost which includes cleaning and service fees. This will provide better transparency and trust to the platform.
The CEO of Airbnb, Brian Chesky thought of this move after he heard some guests who were loud and clear about the opaque pricing system, and checking it becomes a real deal. This inspired him to make four changes in the platform starting this December.
The four changes are:
1. Firstly, the guests will have the capability to view the total price of their stay.
2. There will be a full price breakdown, before and after the addition of taxes.
3. The price breakdown will be further of service fees, discounts applied, etc.
4. The platform will also prioritize search rankings as nightly rates have been criticized due to a lack of transparency as they don’t include additional fees.
Chesky tweeted that “the highest quality homes with the best total prices will rank higher” when checking out.
From next year, the platform will have a new pricing and discount system for the guests to understand the actual cost that they need to pay and why. This will also help them set competitive prices.
Further, hosts will also receive instructions from Airbnb on “reasonable” checkout pleas for guests and will have to indicate requests to potential visitors before they book.
“You shouldn’t have to do unreasonable checkout tasks, such as stripping the beds, doing the laundry, or vacuuming,” Chesky tweeted in a thread about Airbnb’s updates. “But we think it’s reasonable to turn off the lights, throw food in the trash, and lock the doors — just as you would when leaving your own home.”
Airbnb received huge criticism after its guests took to social media to complain about the chore lists. The guests were asked to run the dishwasher, and wash the bedsheets while also paying the cleaning fees.
In May, Airbnb addressed fee transparency on its platform. It also explained to the hosts’ to set cleaning fees and nightly rates depending on the size, area, capacity, and luxuries of their accommodation.
“Hosts need to set their own cleaning fees because everyone is in a different position when it comes to cleaning,” Airbnb said, adding that there’s a difference between cleaning a studio apartment and a five-bedroom house. “Additionally, some Hosts choose to clean listings themselves to reduce costs, whereas others hire professional cleaners.”
According to Airbnb, 45% of its listings globally don’t have a cleaning cost, and for those that do, the average is less than 10% of the entire fee of the stay.
Airbnb is an online marketplace for homestays for a short period. It acts as a broker between the customer and the business that charges a commission from each booking. It was founded by Brian Chesky, Nathan Blecharczyk, and Joe Gebbia in 2008. The present CEO of the company is Brian Chesky himself. It is based in San Francisco, California. Airbnb has some popular subsidiaries like HotelTonight, Luxury Retreats, International Inc., etc. As per the report, the revenue it generated in 2020 was about 599 Crores USD.