By The Hospitable Team
Setting your pricing strategy is one of the hardest aspects of being an Airbnb host. Doing it right is important for staying competitive and attracting more bookings. When setting your nightly rate and any additional fees like a cleaning fee, you should find a balance between covering your hosting costs and offering the best value for travelers.
You can raise your nightly rate by charging an extra fee when you host more guests than usual. The platform allows you to charge an extra guest fee if your vacation rental space can accommodate them comfortably. This optional fee helps to cover the added costs of hosting more people and offer value for people traveling alone or in small groups.
So let’s see how you can use an extra guest fee to boost your income on Airbnb.
Airbnb Extra Guests: Should You Allow Them?
It’s up to you to decide whether you want to allow Airbnb extra guests at your rental property. Each situation is unique, and some properties simply can’t take additional guests because of their size or local short-term rental laws and regulations.
And remember that having extra guests at your house or apartment can potentially create problems. They include increased consumption of utilities, wear and tear of furniture and appliances, and more mess, so you’ll need extra cleaning services.
That will require more time and effort in maintaining your rental property and keeping it guest-perfect for each stay. Then you’ll need to delegate some of your responsibilities and hire a co-host and cleaners. Still, you can easily manage your team using short-term rental software like Hospitable.com.
Team management taken to the next level.
Nevertheless, allowing extra guests may be beneficial for your revenue strategy. If you admit more guests, you’ll be able to get extra profit from the additional charges per person. Besides, making guests pay fairly for the use of your Airbnb will help you keep standard rates low.
Airbnb Extra Guest Fee: How Much to Charge for Extra Guests
Many hosts charge an Airbnb extra guest fee as part of their pricing strategy. The extra guest fee applies to each guest beyond their standard occupancy, up to the maximum number of people they allow in their space.
So how much should you charge for extra guests on Airbnb? The amount hosts charge can vary widely. So here are a few things you should consider when setting an extra guest fee for your Airbnb listing:
- Decide how many people fit comfortably in your space—guests may be disappointed to discover that your place is smaller than expected, and you may get bad reviews.
- Figure out your additional expenses for hosting more guests—tracking the increased use of utilities, and basic supplies can help you set a fee that’s fair to you and your guests.
- Compare your fee to others—check similar listings in your area or reach out to local hosting clubs to find out what the norms are in the area.
It’s important to make sure your extra person fee isn’t on the high side compared to your competition. And if you discover that half of your competition isn’t charging an extra guest fee at all, you shouldn’t charge it either.
Adding Airbnb Extra Guest Fee to Your Listing
If you’re OK with accommodating more guests, you can add a fee for each guest you’re willing to put up beyond your normal limit. For example, if the number of guests you’ve set under Listing basics is 2, you can charge an Airbnb extra guest fee for the 3rd and 4th guests and up to your comfort level.
Follow these steps to add an extra guest fee to your listing:
- Go to Listings and choose the listing you want;
- Click Pricing and Availability and then go to Fees;
- Next to Extra Guest Fee, click Edit;
- Enter the amount you want to charge per extra guest;
- Finally, click Save.
You should keep in mind that your new fee only applies to future reservations. If you want to add an extra guest fee to a confirmed booking, you’ll need to send your guest a trip change request to adjust the price.
You can also add info about an extra guest fee in your house rules to make it more visible for your potential guests and provide details of your pricing policy in messages. Good communication is a vital aspect of managing your short-term rental business, so you should take it seriously if you want to succeed. And software like Hospitable.com can help you automate your day-to-day operations, including communication with guests, saving you tons of time.
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You can charge an Airbnb extra guest fee for each night of a reservation when your guests exceed the maximum number of guests specified in your listing. This fee will help you be in control of the number of people using your place and save your profit by compensating for the additional costs associated with hosting more travelers
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When starting your STR business you have to decide on pricing strategy. In the back of your mind, you realize this could have a huge impact on how much money you make. But where do you start?
Start right here! This blog post will lay out how to set up a great pricing strategy that will make you the most money you can and give you peace of mind that you’re doing perfectly.