Here’s how to charge fees that feel fair to you and your travelers, so that you can protect your business and still drive new bookings.
Here’s how to charge fees that feel fair to you and your travelers, so that you can protect your business and still drive new bookings.
When travelers are looking for vacation rentals, they understand that fees are a part of it — after all, they want to stay in a safe, cozy spot, and know that fees often go hand in hand with that. However, high fees (especially certain ones) could push travelers towards a different listing.
We know that your business and properties are important to you, and so are your guests. We talked to travelers about their feelings on fees, so that you can understand where they’re coming from and what might help you to boost your performance.*
Travelers have accepted that fees are part of booking a vacation rental, and they’re okay with paying them. They know that protecting your property is important — and they value that.
However, most travelers agree that things like basic utilities should be included — and they don’t want to pay extra for things like internet, water, or electricity. The way a lot of travelers see it, just because they’re paying to stay in a home or rental doesn’t mean that they want to pay extra fees that they wouldn’t get in a hotel.
For most travelers, well-explained, necessary fees aren’t going to prevent them from booking. However, they want the purpose of fees disclosed in the explanation — and they value detail and transparency around those fees.
For instance, travelers tend to be okay with cleaning fees, pet fees, and fees for extra guests over the maximum occupancy. However, things like administrative fees, laundry fees, equipment, and bath linens are poorly perceived — and it’s helpful if you can include an explanation.
While some fees are understandable to travelers, high fees may be the reason that they choose to book with someone else. Over one-third of travelers wouldn’t book a property with fees that make up over 10% of their booking costs, and half of travelers wouldn't book a property with fees that make up over 15%.
It’s not just about percentages, either. In fact, our research shows that over one-third of travelers won’t book a property that includes two additional fees — and two-thirds of travelers won’t book a property that includes three. They also prefer a one-time fee over per-night fees, and consider that when scrolling through properties.
We know that a lot goes into determining the fees you choose to charge for your property, and we understand that. However, if you’re thinking that your fees may be affecting your bookings, it’s a great idea to try other techniques (like lowering or removing those fees).
To adjust your fee strategy or restructure your fees, all you need to do is access your dashboard. You can find out how here. If you use software to manage your property listings, you should be able to adjust your fees within your software. Contact your software provider if you need any help making those changes.
In our research, we found that 66% of guests in the United States, 46% in Australia, and 21% in France worry that hosts with high fees will be unreasonable and hard to deal with. We know that this isn’t true and that the fees you charge are to help you protect your business.
However, you may be greatly reducing your chances of booking — and we want you to be as successful as possible. If fees are a factor in keeping people from booking with you, you may want to consider adjusting or removing them.
Fee Research May 2021, Vrbo Travelers
