Airbnb recently introduced a new feature to increase pricing transparency on their platform. Further, hosts now have a simple way to see and compare their pricing against similar properties. This new initiative helps address one of Airbnb’s oldest and most frequent user complaints. It shines light on the bottom-line costs of their bookings, including misleading add-ons such as cleaning fees.
As a result, countless users have expressed their dissatisfaction over the years. In particular, they complain about not knowing how much they’re going to pay until deep in the booking funnel. In 2019, Airbnb began testing a new pricing transparency feature. This campaign was largely targeted at specific countries in Europe, Australia, Canada and Korea. After receiving encouraging reviews of the change, the company has increased its efforts to better communicate pricing to users globally.
The New Pricing Transparency Feature
Airbnb has made some moves toward clarifying pricing and charging fees upfront. They even now have the ability to automatically show you your all-in cost per property, fees included. This change is a new iteration to a long-standing goal of increasing user satisfaction and trust in the platform. In 2022, Airbnb gambled on its future. They recently made an optional toggle available allowing users to view prices excluding taxes in search results, a change that affects the U.S. and 200 other countries. By incorporating this new toggle, users can have more transparency and choose wisely when searching for new places to stay.
Homebuyers on the Airbnb website will quickly see a tiny asterisk attached to listings. It mentions, “Prices are all-inclusive.” This designation unmistakably signals to prospective travelers that the price listed is the actual price they will pay. It displays the final price including all fees, eliminating any shock at the point of payment. The approach has been vindicated by its effectiveness, as the feature has been used by 17 million users since its launch.
In 2023, Airbnb extended the impact of the toggle to include price filters, maps, and individual listing pages. This allows users to see pre-tax pricing in more places across the platform, enhancing their search experience even more. Though the toggle isn’t mandatory, it provides flexibility for users who may want to view their price breakdown prior to tax.
The addition of these features is a good sign of Airbnb’s newfound focus on transparency and user experience on its platform. Airbnb is likely trying to cultivate goodwill with its users by providing a more transparent pricing experience. This way, users are sure they know enough and can be confident in their booking decisions.
What The Author Thinks
Airbnb’s decision to implement all-inclusive pricing and remove hidden fees is a necessary move to enhance user experience and foster trust. In an age where consumers increasingly demand transparency, this feature is not only a win for users but also a smart business decision by Airbnb. By giving travelers clear and upfront information, the platform positions itself as a more honest and reliable choice compared to other competitors that continue to struggle with hidden fees. As more platforms move toward transparent pricing models, Airbnb is setting a valuable precedent for others to follow.
