NEW YORK — Among the biggest annoyances of booking an Airbnb are the fees, which can jack up the price of the once affordable alternative to hotels. That’s changing Monday with the platform now displaying the total price on default.
All users will now see the full price of a stay, which includes fees and taxes, from the get-go. This marks a change from displaying prices based off the nightly rate. The pricing update is part of Airbnb’s commitment to “affordability and transparency,” according to a blog post.
Airbnb’s changes come ahead of new US federal regulations about junk fees that are set to go into effect on May 12. The Federal Trade Commission announced new rules late last year banning hotels, ticketing and short-term rental companies from including hidden junk fees in their total.
Rather than consumers getting hit with “convenience” or “service” fees for hotel bookings and concert tickets at checkout, the rule will ensure that pricing information is presented transparently before consumers agree to pay, the agency previously announced.
The final rule does not limit what sellers can charge for a product or service. Instead, it requires businesses to display the total price, including all additional fees, more prominently than other pricing information.
Airbnb began displaying total prices on default in 2019 in several parts of Australia, Canada and Europe. The change rolled out as an option to Canada and the US in 2022, with nearly 17 million guests having used the feature since then, the company said.
The company has credited the tool for lowering cleaning fees from hosts. In 2023, Airbnb said that nearly 300,000 listings removed or lowered their fees after it launched the tool, with 40% of active listings eliminating their cleaning fee.
