Transition to Airbnb HOF on Hospitable!

I think your your math is wrong.

The 14.3% markup for hosts adjusting from a 3% fee should be ~14.79%.

For Fcurrent = 0.03, Fnew = 0.155:

Markup = ( 1 − 0.03 1 − 0.155 − 1 ) × 100 = ( 0.97 0.845 − 1 ) × 100 ≈ 14.79%

Corrected.

Markup = ((1-.03 / 1-.155 ) -1) x 100 = ((.97/.845 -1)) x 100 ≈ 14.79%

This is so helpful! Any chance you can add a column for those who already account for the 3%? I assume most hosts already account for this in their current pricing, so I’d love to know what my markup should be since I’m already accounting for this currently. 

Starting on October 27th, Airbnb's transition all hosts connected to a PMS from the current split fee to their 15.5% Host Only Fee.

 

If you don't adjust your rates up to compensate, you're effectively taking a 14-18.4% pay cut on every booking (depending on your current markup rates!).

 

For those of you who wish to transition right now, you can do it from Airbnb today. But for those of you who wish to stay until the last minute on the split fee, we will handle the timing for you.

 

Here's how it works:
 

1. We calculated your markup – Based on your current pricing, we've pre-filled the adjustment you need to maintain your actual payout. 
2. Review and modify – Don't like our recommendation? Adjust it. Want to be more conservative or aggressive? Your call
3. Approve it – Once you're happy, hit Confirm
4. We handle the timing – We'll sync your new rates right before October 27th, so you can keep your current rates and stay protected when the switch happens

 

Where to find it: 

• Your home page
• On top of the Settings page
• Property > Pricing > Listing Markups

 

Why isn't my markup exactly 15.5%? Why is it 18.34% (or some other number)?

Great question! It's because of how percentages work in reverse.

Here's the math:

Let's say your current base price is $100.

• If we just add 15.5% → you get $115.50
• But when Airbnb removes their 15.5% fee from $115.50 → you get $97.45 (not $100!)

We're calculating the markup you need so that after Airbnb takes their cut, you end up with your original $100. That number is 18.34%.

What if I already adjusted my prices for the current 3% host fee?

If you're already factoring in Airbnb's current 3% host fee in your rates, then you only need to offset the additional 12.5% they're adding (15.5% total - 3% current = 12.5% new).

Using the same reverse-percentage math, that works out to ~14.3% instead of 18.34%.

TL;DR: We're doing the math backwards so your actual payout stays the same after Airbnb takes their cut. It's not just adding 15.5%—it's making sure you net the same amount.

 

PS: Our team will be dropping an update soon in order for the markups to adjust all your fees as well not only the base price, so that you don't have to worry about them!

 

PS2: If you are already on the Host Only Fee we won't make changes to your markups!

 

Drop any questions below and we'll help out 👇

I’m SO pleased that ​@pierre-camille came to the rescue yesterday to address the fees portion of this on the townhall. 

In reality, Airbnb could have done this ALL on their end, but chose not to. I’m not going to fully speculate that it was done to create confusion & take money out of hosts pockets that aren’t “mathing” correctly or just fall asleep at the wheel, but…. 

QUESTION: If we already had a markup on Airbnb (for only some properties) can we still use in the future? Essentially, we markup some properties more on some OTAs and it can change throughout the year. Will we still have this ability? Will this mess up the “automatic” calculation your tool is building in?

Is this mark up only to the accomodation rate or to all the fees as well? The new fee structure is going to be deducted on all of our charges, including pet fees, management, linens, cleaning, etc. so just confirming if I need to go manually adjust these rates or if this markup is going to be put on all charges?

I am having trouble finding where this is located. Is this in hospitable? Is there a direct link to this page to edit and confirm?

I’m having the same issue. I can’t find it

​@Marina Coimbra 

Any plans to fix the incorrect Math as detailed in my comment above?

Yes :)

We are working on a new version which will have the following updates:

• You will be able to see your prices (and payout) before and after the markup changes so that it is easier to visualize which markup you should select
• We will correct the math
• We will help hosts who are already on the Host Only Fee to also increase their markups by 0.6% (due to the 0.5% increase that Airbnb will apply)
• It will be more clear that your updates were saved

We are planning to release it this week!

Fantastic, those are great updates.  Thank you.

Also ​@Sam I'm working on my math but maybe you could help me double check if it looks good :)

Also ​@Sam I'm working on my math but maybe you could help me double check if it looks good :)

 

 

 I haven’t checked the 18.34% math yet, but I would assume you’d want “Your Payout” to be exactly the same before and after (or as close as possible).  To get it as close as possible, I would allow the markup to accept a number to the hundredth decimal point (if possible).

So for the 2nd example - If you have a 3% Markup or more, let’s use 3% as the number.

So change 4% (your current markup) to 3% and change 14.8% to 14.79%.

Hi, thanks for doing this!  Is the update (covering other fees also) available now or do we still need to wait for it to be rolled out?

Hey @stacey, I’m adding your question from Facebook here, to keep the conversation in the one place. 💜 ​

Appreciate the help here!!

Hi @stacey,

That's a really great question - I'm so glad you brought this up because it's something that affects all our hosts.

You're absolutely right to be concerned. Airbnb's promotions look back 60 days at your pricing history, so when we increase the markup, it could impact how those promotions calculate in the short term.

I have escalated your question directly to Airbnb because it is expected that everyone's prices are going to increase in order to make up for the change on service fees and my personal opinion is that they should take that into account when calculating how promotions work.

I'll get back to you once I have more details!

I am still not finding where I can make this adjustment in the settings per the instructions above - 

Where to find it: 

• Your home page
• On top of the Settings page
• Property > Pricing > Listing Markups

This page does not seem to exist. Can you provide a direct link to this page please?

Hi ​@ehardwick, here is the link: https://my.hospitable.com/settings/properties :)