Extra Guest Fee: Good idea, bad idea?

Question

What do people think of Airbnb's "Extra Guest Fee"? Good idea, bad idea? I've recently had to switch cleaners and that is costing me an additional $50/stay. I could pass this along directly in the cleaning charge, but I feel like that is a more visible competitive differentiator. I thought maybe I could recoup most of it by added a $10 or $20/night extra guest fee. Thoughts?

Michael Baum · Answer

Bad idea IMHO @Josh Carpenter.

Our place sleeps 10 and we don't charge for up to that. If someone asks if it can sleep 12, I don't charge for that either.

I would either just charge the guests more for the cleaning or if you offer free cleaning, add it to the nightly rate.

Nathan Bisson · Answer

Hey @Josh Carpenter, we do something similar to Andrew.

We have a house that can accommodate 8 guests, but frequently parties of 2-4 guests want to book it. As a way to keep our base rate and cleaning fee from being cost prohibitive for those smaller groups, we charge an additional $25/guest over for parties over 4.

I agree that most folks don't like seeing the cost increase as they enter the details of their stay (myself included), but this additional cost is usually split by at least 2 parties or even 3 when there are 8 guests staying. I think this allows us to stay more cost competitive with smaller groups, who may actually be the majority of our stays over the course of the year.

If you decided this strategy is not for you, then I would agree with Lauren and just up the base rate and drop the cleaning fee. While Airbnb shows the total price for better transparency these days, there is still a bit of sticker shock when guests inevitably look at the cost breakdown.

Andrew Steffens · Answer

We do it.  So do hotels.  Typically 75% of max occupancy is our standard occupancy and then $10-30 per person per day extra (depending on unit price point) up to max occupancy.  Typically larger groups have more people splitting the cost and it has not affected us in occupancy versus our close competition.

I would maybe be wary if you are in a hyper competitive market or market segment.  We only have this on our 3+ bedroom and it is not a big revenue generator except on our largest houses which do not have much competition as it stands.

Lauren Kormylo · Answer

I have a 4 bedroom and allow up to 9 people for the same base price.  But I do have an extra guest fee of $20 per person per night, just to be able to recoup money if guests decide to have a party and have a bunch of extra people over.  I haven't had to use it in the 3 years I've hosted, but it's there in case.

I stayed in an a place this summer with 2 bedrooms and 3 queen beds.  We had 4 people total, and I had to pay extra for more than 2 people at $30/night per person.  I didn't like that, the total price jumped way up when 2 more people were added in.  It feels like nickel and diming.  It sounds like your cleaner is charging more no matter how many people stay, so I would recommend upping your nightly rate a few dollars to make up the $50.  Otherwise, guests will try to sneak people in to save a few bucks.  My cleaner is high too, $330 per stay.  I found that by dropping the cleaning fee to $230 and increasing the nightly rate by $30, I got more bookings.  Guests don't like to see high additional fees.

Josh Carpenter · Answer

Great feedback, @Andrew Steffens, thank you!

Nicole Arocha · Answer

I've used an extra guest fee as insurance for parties to recoup some money for damages successfully. I wouldn't charge it for additional guests under my max capacity but if someone brings more people over that capacity (or over what they booked for) I think it's very reasonable.

Brooke Dyer · Answer

Hi @Josh Carpenter - this is a great question and one I've discussed and brainstormed with before.

This is a great question, and one I've brainstormed on before. The best advice I can offer is not to charge an extra guest fee if the number of guests is at or below your maximum capacity. However, if guests want to bring 1-2 additional people beyond that limit, you can apply a flat fee or per-night charge. Guests typically understand that more people mean additional supplies, wear and tear, etc.

As for your new cleaning fee, is it comparable to similar properties in your area? I’d recommend spending 20-30 minutes researching local competitors to get a sense of what their cleaning fees look like. If your fee is significantly higher, it might be worth having a conversation with your new cleaner about their rates.

Consider adding the extra cleaning cost to the cleaning fee or at least a portion of it, then monitor how it impacts your bookings. This is something I always discuss upfront when cleaner prices increase. If there’s a noticeable drop in bookings due to the higher cleaning fee, it’s time to revisit pricing. The bottom line is if the fee is too high and impacts bookings negatively, the cleaner won’t be getting paid either, so it really is a team effort.

The best advice I can give is don't charge an extra guest fee if the guest number is at or below your max. However, if guests want to bring an extra 1-2 people over your guest max then add a flat fee or per night charge for the guest. The reason, guests understand that extra people = extra supplies, extra wear and tear, etc.

Is the new cleaning fee comparable to cleaning fees in your area? I would spend 20-30 minutes looking at competitors in your area and see what pricing looks like. If it is far off from others in the area, I would have a conversation with your new cleaner about pricing.

I would add the extra cost of cleaning to the cleaning fee or at least a portion of it and see how it affects your bookings. This is always a conversation I have up front if a switch in cleaner increases pricing dramatically. If there is a fluctuate in bookings based on the new cleaning fee than pricing should be revisited. The fact of the matter is that if the cleaning price is too high and it negatively impacts bookings than the cleaners won't be getting payment either. It truly is a team effort and an open conversation to have with your team.

Josh Carpenter · Answer

Thanks @Lauren Kormylo and @Michael Baum for the different perspectives!

In my case, we sleep a max of 4, and typically only 2, so it wouldn't balloon up the total too much.

Curious if anyone else has tried this with smaller maximums?

Extra Guest Fee: Good idea, bad idea?

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