How to Create Additional Revenue From Your Airbnb Hosting Business

How to Create Additional Revenue From Your Airbnb Hosting Business

How to Create Additional Revenue From Your Airbnb Hosting Business

The amount of income you generate from your Airbnb business is highly dependent on how you manage your listing. You need to have a high-quality listing, set optimal prices and provide an outstanding hospitality experience.

Once you’ve maximized your revenue, it’s time to think outside the box to increase your income even further. You can do this by offering additional services to your guests, such as

*Early and late check-ins and check-outs
*Additional cleanings
*Luggage storage
*Bike rentals
*Airport pick-up

According to data from YourWelcome, hosts can earn an extra $27 from late-checkouts, $35 for mid-stay cleanings and $15 for luggage storage.

This money can increase your revenue significantly, but hold your horses, there are two things to consider before you start charging away.

First of all, you may want to include these services for free, to improve the hospitality experience and receive better reviews as a result.

Secondly, there’s the issue of receiving the money. Asking your guests to pay you cash may feel a little too transactional, and other methods of payment could put a burden on the guests.

Should you charge for additional services?

The short answer is: it depends on your goals, the state of your Airbnb business and the type of service. Let’s talk first about the things that don’t increase your expenses, such as late-checkouts and luggage storage.

Services that don’t incur additional expenses

The main argument not to charge for these type of additional services is that it may negatively affect your reviews. One of the best ways to get stellar reviews from your guests is to exceed their expectations, and a way to do this is to offer extras for free.

Therefore, I would be hesitant to charge unless I feel 100% certain that I’m already offering an outstanding guest experience and I’m receiving consistent five-star reviews. If that’s the case for you, and you’re looking to maximize revenues from your business, then go ahead and take advantage of these opportunities.

Services that incur additional expenses on the host

These include services such as additional cleanings, airport pick-ups and other services that cost you money. They are benefits to your guests that they wouldn’t expect to get for free. Therefore, they add to the experience even though they come at an expense to the guest.

How to receive the additional payment from your guests

If you decide to charge for extras, you want to consider the different options to receive the money. The goal is to make the transaction as smooth as possible and involve as little extra hassle for the guest as possible.

The options are:

Cash: I don’t like this option very much. It feels too transactional, the guests may not have money on them, and if you’re a remote host, then it’s a hassle to collect.

Through Airbnb: This option involves too much hassle in my opinion. You have to change the reservation amount, and the guests have to approve it for every service they want to add. Also, Airbnb will increase the service fee based on the increased reservation amount.

Wire transfer: Way too expensive and complicated, especially if when hosting foreign guests.

Online payment solutions: Paypal, Vemmo, etc. Only works if you and your guests both have an account and the fees are typically significant. Not ideal either.

Third party services: YourWelcome, Guestbook. My preferred choice. These apps offer a smooth way to receive money from your guests at a reasonable cost.

The YourWelcome tablet is particularly usefull as a way to offer extra services as it allows you to sell tickets to events and earn a commission through their E-commerce platform, plus it can be used to provide information about your listing, essentially serving as a digital guidebook.

Conclusion

Charging for additional services can increase revenue from your Airbnb business. Extra services that incur expenses, such as mid-stay cleanings and airport pick-ups, can be charged for and add to the guest experience if the transaction can happen frictionlessly.

Services that don’t incur extra expenses, such as late-check outs and luggage storage, should be charged for only if the host had built a solid reputation on Airbnb and is receiving consistent five-star reviews. Otherwise, these services should be used to improve the experience and guest ratings.

The best way to charge the guest is by using a third-party app like YourWelcome or GuestBook. These apps make the transaction smooth at a reasonable cost to the host.

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