Airbnb is reportedly gradually phasing out the cleaning fee in an effort to provide more transparent pricing. According to a report in TechCrunch, from early last year, when Airbnb began displaying all-inclusive pricing for property bookings, nearly 300,000 listings have either removed or reduced cleaning fees, according to Airbnb’s recent earnings report.Currently, almost 40% of active listings do not include cleaning fees.
For customers, these cleaning fees have reportedly been a source of irritation for a long time. It was common to find an affordable vacation rental on Airbnb, only to be hit with hundreds of dollars in cleaning fees at checkout. As cleaning fees increased, so did the average rental price on the platform, making Airbnb less attractive for holiday bookings.
These key questions remain
The report said that the decrease in cleaning fees raises a question — are Airbnb hosts no longer paying for cleaning services? Or are they simply incorporating the cleaning costs into their listing prices? When Airbnb first introduced its “Total Price Display,” it seemed determined to strike a balance.
Airbnb stated that “Guests should not be expected to perform unreasonable checkout tasks such as stripping the beds, doing the laundry, or vacuuming when leaving their Airbnb. However, we believe it’s reasonable to ask guests to turn off the lights, dispose of food waste, and lock the doors — just as they would when leaving their own home.”
The report further added that while it’s hard to imagine that simply reminding guests to turn off the lights would result in significant financial savings, Airbnb reports that its average nightly price for a one-bedroom listing was $114, a 2% decrease from last year. In contrast, the company reports that hotel prices increased by 7% to an average nightly rate of $149 during the same period.
All in all, as per earnings numbers, Airbnb saw a 17% increase in its quarterly revenue to $2.2 billion, year over year. However, due to a one-time tax expense of $1 billion, the company reported a loss of $349 million for the quarter.
For customers, these cleaning fees have reportedly been a source of irritation for a long time. It was common to find an affordable vacation rental on Airbnb, only to be hit with hundreds of dollars in cleaning fees at checkout. As cleaning fees increased, so did the average rental price on the platform, making Airbnb less attractive for holiday bookings.
These key questions remain
The report said that the decrease in cleaning fees raises a question — are Airbnb hosts no longer paying for cleaning services? Or are they simply incorporating the cleaning costs into their listing prices? When Airbnb first introduced its “Total Price Display,” it seemed determined to strike a balance.
Airbnb stated that “Guests should not be expected to perform unreasonable checkout tasks such as stripping the beds, doing the laundry, or vacuuming when leaving their Airbnb. However, we believe it’s reasonable to ask guests to turn off the lights, dispose of food waste, and lock the doors — just as they would when leaving their own home.”
The report further added that while it’s hard to imagine that simply reminding guests to turn off the lights would result in significant financial savings, Airbnb reports that its average nightly price for a one-bedroom listing was $114, a 2% decrease from last year. In contrast, the company reports that hotel prices increased by 7% to an average nightly rate of $149 during the same period.
All in all, as per earnings numbers, Airbnb saw a 17% increase in its quarterly revenue to $2.2 billion, year over year. However, due to a one-time tax expense of $1 billion, the company reported a loss of $349 million for the quarter.
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