What is the Airbnb extra guest fee
Airbnb hosts can set a base number of guests and charge for each additional guest beyond it. In earlier versions of the platform, this was explicitly stated. Where there was no extra guest fee, the listing would say exactly that: “extra people: no charge”. This led many hosts to complain that guests would interpret they were free to go beyond the maximum number of guests free of charge.
Ultimately Airbnb resolved this by making the extra guest fee less visible. It now only appears when a guest has entered their stay, under base price breakdown. In the example below, the extra guest fee was $25. At three nights the total appears as $75. The per night extra guest fee is less visible than ever to guests.
Introduction to the Analysis
For the analysis we’ll use a dataset of 250k listings from the US as of April 2020. Data was sourced from Inside Airbnb, an activist project with the objective to provide data that quantifies the impact of short-term rentals on housing and residential communities.
First we’ll look at the distribution of extra guest fees as was done with the cleaning fee and security deposit to determine what hosts typically charge. Then we’ll look at the number of listings with an extra guest fee. To show this more meaningfully, we’ll segment listings by total guests that can be accommodated.
How much to charge for extra guests on Airbnb
Hosts should charge between $20 and $25 for extra guests. To look at what hosts charge for extra guests in general, we can use a histogram. A histogram chart shows data grouped into ranges making it easier to visualize distribution. Doing that below we can see most Airbnb hosts charge $25 or less per extra guest. The $20 – $25 bin represents the middle of the distribution.
How many Airbnb hosts charge an extra guest fee
To answer this, we must first trim down the data set. We’ll start by removing listings that can only accommodate one person, as they cannot charge for an extra guest. Next, we’ll remove extreme outliers that can accommodate more than 12 guests. Finally, we’ll remove long-term listings with a minimum nights of at least 30 days. This leaves 192k listings, of which 33% have an extra guest fee.
However, a more meaningful way to look at this is to segment by the number of guests a listing can accommodate. This was done below. For example, Airbnb listings that can accommodate 2 guests had a extra guest fee in 25% of the listings analyzed. Listings that can accommodate 3 guests had a extra guest fee 50%.
Looking at the graph above, a pattern emerges. Airbnb Listings that can accommodate an even number of guests are far less likely to have an extra person fee than listings that can accommodate an odd number of guests. One explanation for this is that listings that accommodate an odd number are truly meant for fewer guests – think of a space with one bed and a couch. In that example, the space is most comfortably enjoyed by two people but could accommodate up to three. Hosts that are willing to consider this are pricing it accordingly using the extra guest fee.
How much hosts decide to charge will ultimately depend on their unique situation. For example, their base nightly price and operation costs may factor into the decision.
Charge an extra guest fee or not?
Hosts must also decide whether to apply an extra guest fee at all. There are pros and cons to doing so.
Reasons to apply an extra guest fee
- The space is most comfortably enjoyed with fewer guests than the maximum it can accommodate.
- To offset the additional costs associated with hosting more guests.
Reasons not to apply an extra guest fee
- The extra guest fee is no longer as transparent as it once was. It can be confusing or misleading for guests.
- Getting off on the wrong foot can ultimately lead to bad reviews. Particularly in the overall and value categories.
Key Takeaways
- 33% of listings that can accommodate 2+ guest have an extra guest fee
- Listings that can accommodate an odd number of guests are much more likely to have an extra guest fee
- Most Airbnb extra guest fees are $25 or less per person
