Before 2007, figuring out lodging for your travels was a pretty simple process: you stayed at a hotel you judged by a star ranking, and the more you had to spend, the more stars you could afford.
But after Airbnb (ABNB) made its debut that year, customers gained a whole new set of options that were, frankly, mind-blowing. Suddenly, you could stay in someone’s cozy home in the middle of Tokyo or in the heart of the Saint-Germain-des-Prés in Paris for a fraction of the cost of even a moderate hotel room.
💰💸 Don’t miss the move: SIGN UP for TheStreet’s FREE Daily newsletter 💰💸
While it took some time for Airbnb to become profitable (the company announced its first year of positive net income in 2022), the formula was an obviously strong foundation to build on. It presented major perks for travelers and property owners alike, and there was nothing else like it in the space. Now competitors like Vrbo have entered the same space, but Airbnb remains the name most customers think of first when they want something other than a hotel.
As Airbnb has continued to adapt and grow, it’s had to also consider how to keep its customers coming back — and keep them from going to those same competitors. Now it’s making a move that, in the eyes of many of its customers, is long past due.
Airbnb CEO and cofounder Brian Chesky is steering the company toward a bright future.
Image source: White/Getty Images for WIRED
Airbnb’s new pricing just got real
As many longtime users already know, when browsing Airbnb, the price you would see for a single night’s stay at any rentable property was a base cost. Once you clicked reserve, a list of other fees would appear, including cleaning fees and taxes. This could drive the cost of what seemed affordable on the search page to something, well, somewhat less so.
However, Airbnb has finally responded to longtime customer requests to change this format, and now when you use the app or website, the price you see on the listing will include all fees. You’ll also notice a pop-up at the top of the search page reminding you that prices include all fees.
Related: This travel trend is growing fast, and it’s not about luxury
Airbnb started testing this feature in 2019 in Australia, Canada, and Korea, as well as several countries in Europe.
In December 2022, Airbnb took another step in this direction, introducing a toggle customers could use to see what it called “upfront pricing” rather than the per-night price. CEO Brian Chesky made an X post to accompany the change, saying, “I’ve heard you loud and clear — you feel like prices aren’t transparent and checkout tasks are a pain.”
Airbnb’s problem with cleaning fees
Part of Airbnb’s decision to make this change may be related to its long history of customer complaints around excessive cleaning fees.
Both Airbnb’s official community and Reddit have lit up with discussions around this topic over the years, with many claiming that Airbnb listings often use cleaning fees as an opportunity to overcharge customers. A 2024 Nerdwallet analysis showed 40% of listings had cleaning fees from 20% to 29.9% of list price.
The newest iteration of upfront pricing means those fees are crystal-clear on the search page, so hosts can no longer hide them. And Airbnb has also indicated it’s quite aware of what’s going on.
“Aim to use the cleaning fee to cover the expense of cleaning – not to make additional money,” Airbnb said to its hosts in a 2021 memo.
Related: Travel giant that canceled tours now faces legal action
