Crazy cleaning fees have pushed once-loyal Airbnb travelers back to hotels – Pottsville Republican Herald
Airbnb, the popular short-term rental platform, has been gaining popularity among travelers for its unique and affordable accommodations. However, recent changes to the platform have left many users feeling frustrated and price-conscious. In this article, we’ll explore the shift in Airbnb’s economics and what it means for users.
Airbnb’s Diverse Range of Accommodations
Airbnb offers a diverse range of accommodations in Denver, with over 1,000 active listings. The city was also listed as one of Airbnb’s top 10 U.S. cities with the most adventurous travelers in 2023. According to Airbnb, guests from Denver visited nearly 80% of counties in the U.S. last year.
The Cost of Staying on Airbnb
But many users have begun to grapple with the shifting economics of short-term rentals. The cost of staying on Airbnb has increased so much that in many cases it’s no longer a cheaper option than a hotel. According to Airbnb’s own data, the average daily rate for a stay in Denver has decreased by about $5 over the first three quarters of 2024 compared to the same period in 2022.
Ridiculous” Fees
Washington state resident Nicole Hernandez, who has booked through Airbnb a dozen times, said she’s noticed a change in pricing. “When I first started using Airbnb, it felt like I could find a good deal on accommodations while staying in a less commercial place that was more connected to the community,” she said. “Over the years, it’s become more expensive and commercialized.”
Hernandez has paid cleaning fees ranging from $20 to $129 per stay. “I don’t mind stripping the sheets or doing simple tasks before leaving. It feels respectful considering you’re typically in someone’s space,” she said. “But I’ve seen some cleaning fees that cost more than the total nightly fee, and that’s ridiculous in my opinion.”
Airbnb’s Efforts to Combat Hidden Fees
Airbnb has rolled out several tools to help combat hidden fees and make pricing more transparent. In May, the company launched a compare listing tool that allows hosts to see how much other people are charging in the neighborhood. “They just didn’t have a really good concept,” said Airbnb Co-founder and CEO Brian Chesky. “So we created a tool called the compare listing tool, where people can see how much other people are charging in the neighborhood. And they can actually see people who are getting booked and not getting booked. And no surprise, the people getting booked generally have lower prices.”
Airbnb has also introduced weekly and monthly discounts and implemented a total price display, where users can toggle between seeing total prices before and after fees. “It’s begun to change behavior in our host community because 300,000 hosts on their listings say (they) have removed or lowered their cleaning fee as a result,” said Chesky.
Hosts’ Perspectives on Airbnb
One host who has seen the shift firsthand is Milan Doshi, owner of the Queen Anne Bed & Breakfast in Denver. “I was apprehensive to the idea, you know, when it was just feeling very much like the Wild West when Airbnb first came here to Denver because everybody was all of sudden opening up their properties to become a host,” he said. “Now I think the city has kind of upheld their end of the kind of agreements of having the primary residential aspect in place for people to be able to rent out their spaces.”
Airbnb’s Growth in the Third Quarter
Airbnb’s revenue increased to $3.7 billion in the third quarter of 2024 from $3.4 billion in the third quarter of 2023. The company had 123 million “nights and experiences booked in their strong third quarter, an 8% increase year-over-year. “We got focused, went back to our roots, and really focused on rebuilding our platform, becoming lean, becoming a functional organization, and we now have essentially the same amount of employees as before the pandemic,” Chesky said in an August earnings call.
Airbnb’s growth has been impressive, with the company surpassing 8 million active listings and removing over 300,000 listings that failed to meet guests’ expectations. “We’re now beginning to prepare the next chapter of Airbnb, and I want Airbnb to be one of the most important companies of our generation,” said Chesky.