Airbnb allows millions worldwide to open their homes, apartments, and unique spaces to guests and brings a steady stream of rental income to hosts. So, if you have extra space in your home and want to make some money to fund your family holidays or boost savings, it’s a great option.
Many people in the UK take advantage of hosting on Airbnb and its alternatives to earn extra money while connecting with travelers worldwide. But how much does Airbnb charge hosts in the UK?
In this post, we’ll talk about Airbnb commission in the UK and why hosts have to pay it. Understanding Airbnb service fees can help you set a pricing strategy that makes sense for you and your rental space.
You may also want to check out our article to learn about Airbnb insurance in the UK and your options as a homeowner.
Airbnb Fees in the UK: Why Do the Company Charge Them?
While you can list your property on Airbnb for free, there are service fees that hosts and guests need to pay when using the platform as a commission for each booking. Airbnb relies on these fees to ensure that the platform runs smoothly.
Airbnb fees that hosts pay in the UK help cover the operational costs of the platform and provide services. They include 24/7 customer support, a smooth booking experience for hosts and guests, protection for you and your place, and the development of new features.
The money the company earns as an Airbnb commission also helps them market your UK property via Google, social media, Airbnb blogs, and other channels. It also offers educational resources for hosts to help them run a successful business.
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How Much Does Airbnb Charge in the UK?
Airbnb commission is a percentage of the subtotal amount charged for each booking. The percentage Airbnb takes can vary depending on the fee structure.
Split fee
The most common is a split fee when the Airbnb commission is split between the host and the guest. Most hosts pay about 3% of the booking subtotal, so that’s £3 out of every £100 you make. This fee includes the nightly price and any optional fees that hosts charge guests, for example, a cleaning fee or an extra guest fee, and it doesn’t include Airbnb service fees and taxes.
This commission is automatically deducted from the host’s payout, and they can see it in their transaction history on Airbnb. Guests typically pay a service fee of around 14% of the booking subtotal, and it’s included in the total price they pay at checkout when completing their reservation.
Host-only fee
A host-only fee option is also available when the entire Airbnb commission is taken from the host’s payout. It’s typically 14–16%, although hosts with super strict cancellation policies may pay more, and commissions for stays of 28 nights or more may be less.
This fee structure is mandatory for hotels, serviced apartments, hostels, and software-connected hosts (with API-synced listings).
Airbnb Host Fees UK: Can You Avoid Them?
You need to pay Airbnb host fees if you want to rent out your UK property on this OTA platform, and you can’t reduce or bypass them. All OTAs charge host fees, but not all charge the same amount as Airbnb. That means you shouldn’t rely only on Airbnb and also explore other booking websites with different fee structures.
Consider creating your own vacation rental website with a booking engine and focus on maximizing direct bookings. This way, you can cut out the middleman and ensure that your STR business gets all the profit from every booking. Moreover, if you create a website with an approved Google Vacation Rentals partner like Hospitable, your website will appear on Google Travel, giving your listing massive exposure.
Treat Airbnb and other OTAs as customer acquisition tools. Get contact information from guests when they arrive at your property and let them know that they can get discounted nightly rates if they book their stays directly next time.
You don’t need any technical skills and expertise in web development to create your own direct booking website if you use Hospitable, which comes with a built-in intuitive website builder. With Hospitable Direct, you can build a beautiful direct booking website using our professional, easy-to-customize templates.
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And if you choose our Direct Premium option, we’ll help you vet your guests before they book (this feature is powered by Autohost). Moreover, we’ll ensure your STR property with up to $5M worth of damage protection (powered by Know Your Guest by Superhog).
Final Thought
As a STR host or property manager, understanding the costs of listing your UK property on Airbnb can give you a clear financial perspective for your short-term rental business. It’s important to consider all the expenses, including Airbnb commission in the UK—this way, you’ll be able to create a more accurate budget and better understand your financial bottom line.
This can help you set competitive nightly rates that cover your Airbnb expenses effectively and take measures to optimize your vacation rental business and make it more efficient and profitable.
You may also want to check out our article, where we compare a popular brand in the hospitality industry, Sonder vs. Airbnb, to get a better idea of how it differs from traditional booking platforms.
