4 ms·
Estimate of revenue to date: $50 per night * 3% * 1M = $1.5M Hmm looks like Airbnb handles the credit card transaction for the lister. If 2 out of that 3% goes
by zhyder 16y ago
Estimate of revenue to date: $50 per night * 3% * 1M = $1.5M
Hmm looks like Airbnb handles the credit card transaction for the lister. If 2 out of that 3% goes to the credit card companies and banks, the adjusted revenue is $500k.
- rguzman 16y agoI think this is an underestimate. They also charge a per-booking transaction to the person booking. It is around $10. Assuming that the average booking is 3-nights that's another $3M.
- zhyder 16y agoYou're right. I suppose the 3% is meant to just about cover the credit card fees then. E.g. http://www.airbnb.com/rooms/73581 http://www.airbnb.com/rooms/73581 . Click the 'more info' link that's just below the 'Book it' button. It says in tiny print "Excludes Airbnb service fee ($9)". Odd how they're hiding that fee; much worse than the typical hotel website that tries to hide taxes. Airbnb folks, I know you're reading: that instantly changed my impression of you guys from awesome to sleazy. Please make it more visible.
- hammerdr 16y agoHotels, unlike Airbnb, get to make money off of the actual room charge. They also get to charge high rates for late bookings and general "just because." Airbnb is a different business model than hotels. The $9 service fee is something that I happily pay for their service. Edit: it is also right there on the submit reservation page: http://cl.ly/3r0G0w3p1G0S0c093j3d http://cl.ly/3r0G0w3p1G0S0c093j3d
- SkyMarshal 16y agoYes, instead of hiding it under that little 'more info' link they should probably just show it with the room cost, but I wouldn't go so far as to call them sleazy. I just used them two weeks ago for a trip to SF, and never felt surprised by their service fee during the booking process.
- uptown 16y agoAnybody have any insight into how they handle taxation? Is it up to the homeowner to declare any income derived from their rental as taxable income, or is up to Airbnb to keep track of the tax codes for every locale they have listings for?