Booking accommodation can be a tricky procedure, even for experienced travellers. Understanding how the pricing works is crucial so you know exactly what you’re paying for. But one question I always hear asked by guests is why does Airbnb price change per guest?
There is a many different reasons for an Airbnb price change per guest. The main reason is because hosts will charge additional rates for extra guests. Adding extra guests will also push up the service fee for your bookings.
When using a short term stay platform for the first time, there is a lot you need to know. There’s all sorts of fees to be aware of, plus prices can change when you adjust your search criteria, among many other things.
I have put together this article to help answer questions relating to Airbnb’s price structure. Things that all travellers should know before booking a reservation on the short stay platform.
If you’re an Airbnb host, it would pay to have a read of my article about how Airbnb price breakdown works. But guests, keep on reading here.
What is the Airbnb extra person charge?
The base nightly rate will usually only be for 1-2 people. Once you start adding extra guests to the booking, the price will start jumping up. It will really make the Airbnb price change a lot, as you’re about to see.
This fee is tricky to spot, so pay close attention when you are making a booking that involves extra guests.
To help explain how the extra guest fee works, I’ve taken a screenshot and will help guide you through the process.
Extra Guest Fee example
Here you see the listing I picked at random. The default nightly rate for two guests is $119, which comes to $357 total across the date range I selected; Oct 28th to Oct 31st. But wait, what happens if I add a third guest?
Woah! The price base price changes to $417. What the heck??
This particular listing charges an additional fee of $20 per guest. And yes, that is per night, not for the entire trip in general. That’s why the Extra Guest Fee shows $60 in the screenshot.
If I add a fourth guest the price jumps to $477. A fifth guest makes the Airbnb price change to $537. Ok, I know you’re starting to get the idea now. Adding more guests means a LOT more coin!
Consequently, there is no real way to avoid this charge. If you’re travelling as a family, or as a larger group, it’s just something you’ll have to suck up. Sorry to be blunt.
Are the prices appearing in Airbnb total or nightly?
The prices displayed on Airbnb appear as nightly by default. Once you set a date range across multiple nights, the prices shown will then appear as the total amount for that date range.
This is one thing that really trips up new travellers. They’ll see the price on the search screen and assume that’s how much they’ll be paying. Na ah, it doesn’t work like that.
I’ll show you why. Take a look at the image below which is a search I ran.
Airbnb pricing explained
I have selected a date range of Oct 28 to Oct 31 for two guests and the top three properties shown are $440, $393 and $334.
These are the total prices for the three nights overall, they are not nightly prices.
Many travellers mistake the total price for the nightly price, this is not going to be a mistake you’re going to make now having read this.
Why do the prices change when I click on the listing?
One thing you will notice when you click on a listing from the search screen is that the price will change. So why is that?
There is a simple answer for that. The search screen does not include the different fees. Once you click on a listing, you will see the price change to represent these fees.
As soon as you click through to a listing, a little price box will appear. It will show you the total amount of the booking, with fees included in that total.
So what are the Airbnb fees?
Ahhhh, those pesky Airbnb fees. You find yourself a cheap listing, go to make a booking, then see the total price jump off the screen. So what are the Airbnb fees?
There are two fees that will result in an Airbnb price change that you should be aware of; service fee, extra guest fee & cleaning fee.
Let’s run through them now shall we?
Service Fee
This is the fee that Airbnb charges guests. You know the 24/7 support that’s available for you trip? Well, that costs them money, so you pay them a service fee with every booking.
It also goes towards running their platform, so they can keep introducing awesome new features on their site. That means a much better service when you’re booking your next trip.
So how much is the Airbnb service fee? I am glad you asked.
The guest service fee ranges from 0% to 20% and takes into account many things. It’s like you need a PhD in mathematics to actually understand how it works, but my understanding is that the longer the stay, the less the service fee.
It works the other way too. The shorter the stay, the more expensive the fee. Other factors include the reservation subtotal, length of the stay, and the type of property you’re booking.
Therefore, I’d recommend to budget for about 10% to 15%. That seems a pretty good guide to me and is usually what I pay when making a booking.
Cleaning Fee
The cleaning fee is another reason for an Airbnb price change. This is the one that gets travellers scratching their head. What the heck is an Airbnb cleaning fee anyway?!
Well, you know when you stay at a place and leave used linen and towels and mess behind? The cleaning fee goes towards that.
Most hosts (not all) will charge a cleaning fee on top of their base nightly rate. Think of it as a one off fee to cover the cost of cleaning the space after you leave.
The cleaning fee is clearly visible on the booking screen before you book. That means you won’t get a nasty surprise after you book. It’s a price you accept before confirming your reservation.
If you do not wish to pay this fee, search around for a listing that doesn’t offer one. They do exist, but they’re hard to find! Check out my detailed guide on cleaning fees here.
What other reasons for price changes?
Hosts have the ability to set seasonal pricing. What that means is that prices are automatically calculated by Airbnb, taking into account similar listings in the area.
So, for example, if Ed Sheeran is in town performing a stadium show, or there is some other big event on, you can expect prices to jump much higher.
If you are on the search screen, what you’re seeing is the default price for every listing. Once you select a specific date, it’s possible the price can jump significantly.
Go give it a try now. Look up a random listing and see the price, then select the date as New Years Eve and watch that nightly price sky rocket!
Why did Airbnb price change after booking?
I must admit, this question was new to me. But I have been looking around on the net and sure enough, travellers ask this question quite a lot.
One thing you should be aware of is that when you make a booking, the price is set. It cannot change, what you agree upon is the final amount.
A host can send you an alteration request with a price change, but ultimately it’s your discretion whether you accept that change or not.
What I have seen happen before is a host may forgot to turn seasonal pricing on. Someone then books their property at that default nightly rate. So rather than commanding a higher amount during a peak time, they are losing money.
I know, because as an Airbnb host myself, it has happened to me. So if a host sends you an alteration request, you have every right to reject it. There is nothing they can do.
Common reasons for a price change after booking
- Host may send a payment alteration request after booking
- Mistakenly looking at the default nightly rate
- Hosts upping the price after a traveller makes an enquiry
- Not realising weekend rates are pricier than weekdays
- Looking at the base rate before the inclusion of fees
Some hosts may try underhanded tactics with travellers. For example, when someone makes a booking inquiry, I’ve heard of hosts upping the price for those specific days. They know the traveller is keen for those dates and they try and milk them for extra money.
If you come across something like this happening, move on. Find another property, if a host is doing this to you, what else are they taking shortcuts with?
Perhaps the Airbnb price change after a booking could be as simple as not realising what the fees (that I discussed earlier) are.
– “Make sure you keep an eye on the Airbnb fees. These can change the total price.”
I’ve had guests message me after a booking asking why the price has changed, not realising what the service, cleaning or extra guest fees are for.
It’s surprising how many people follow through on the booking without seeing the more expensive pricing. Make sure you’re not one of these travellers!
Also be aware that weekend rates more expensive than weekdays. If you’re looking at the default rate and make a booking, then later notice the price is more expensive, this could be another reason. A simple error, but it does happen.
Does Airbnb take payment immediately?
Yes. Once you confirm the booking reservation, your credit card is immediately charged. Regardless if your booking is two days away, or two months away.
Airbnb will hold that total in escrow, before releasing it to the host 24 hours after you have checked in. So if you have any payment questions, always ask the Airbnb customer support team, not your host.
Longer term reservations of 28 nights or more work another way. You’ll receive a charge for the first month as a down payment, once confirming your booking. After that, the charge is on a monthly basis.
Some hosts will ask for a security deposit. This is becoming more common in today’s landscape. You’ll only receive a charge if a host makes a successful claim within 14 days of your check out.
Conclusion
You should now have a great idea of what can cause an Airbnb price change. More often than not, it’s something very simple.
I’ve explained to you how the Airbnb fees work and where to find the extra guest fee. The prices on the search screen only show the default nightly rate, it’s not until you click on the listing itself that the fees are included.
You’ll also be aware that the Airbnb price cannot change after you’ve confirmed a booking reservation. A host can send an alteration request, but you are within your rights to decline.
As a result, you will never get a shock again with an Airbnb price change in the future.
