According to Brian Chesky, the company is refining its search to show the total price, inclusive of fees, in the search results. Next month, the company will introduce a feature that will prioritize the total charges for your trip over the nightly price in its search ranking.
The best total prices will be ranked higher in the listings for the area.
Users will see the total price in search results, map listings, price filters and listing pages once they turn on the toggle. Users will be able to see a breakdown of the service fee, as well as discounts and taxes.
I’ve heard you loud and clear—you feel like prices aren’t transparent and checkout tasks are a pain. That’s why we’re making 4 changes:
1. Starting next month, you’ll be able to see the total price you're paying up front. pic.twitter.com/58zodrzU3g
— Brian Chesky (@bchesky) November 7, 2022
It is not clear why the company is making the price inclusive of all fees an opt-in experience, but it is likely because not showing the total price makes the booking look less expensive.
We started as an affordable alternative to hotels, and affordability is especially important today. During this difficult economic time, we need to help our Hosts provide great value to you.
— Brian Chesky (@bchesky) November 7, 2022
Customer complaints about cleaning fees and other hidden charges have grown recently. According to a report published by Nerdwallet, 34% of listings had a cleaning fee in the range of 20% to 30%. In May 2021, the company published a post on their website which claimed that they display all fees on their listings. The post promised that Catherine Powell would assign a team to focus on conducting a comprehensive review of fees on the service.
The problem of hosts charging ridiculous fees isn't solved by just showing all fees upfront. There is no rule for enforcement when the company gives tips to hosts.
Despite customer backlash, it is not clear if the company is going to make further changes. Customers are being asked to do deeper cleanings, which include stripping the bed, doing the laundry, and taking out the trash. These extreme requests have led to many parodies on social media sites where users complain about the workload and wonder how they will have to go back to hotels.
Chesky said that guests shouldn't have to so much. Throwing food in the trash, turning off the lights and locking the doors are some of the checkout requests that should be displayed to guests, according to him. As it rolls out the updates, the company did not say if it would penalize hosts more directly.
If Hosts have checkout requests, they should be reasonable and shown to you before you book.
— Brian Chesky (@bchesky) November 7, 2022
When it comes to total fees, hosts might want their property to be listed under a certain price filter in order to attract more guests.
Revenue for the third quarter of the year was up 29% compared to the same period a year ago. The analysts had estimated that the quarter would end with an amount of $2 billion. Nights and experiences booked grew 25% in the third quarter of the year.
In Europe, the company and its rivals have been asked to share booking data with the European Commission as there are growing worries about the short term rental economy creating a housing shortage by pushing out low income residents.
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