Airbnb
[Credit: Airbnb]

Airbnb to raise guest service fees for cross-currency bookings

US: Airbnb is set to add around two per cent to its guest service fees in cross-currency bookings, effective from 1 April.

An article posted on the company’s website suggests that the average guest service fees [of just under 14.2 per cent of the reservation subtotal] can be increased to as much as 16.5 per cent when a guest pays in a different currency to the one that the host displays with their listing. The fee then becomes visible as the guest tries to complete the booking process.

The news was first reported in Bloomberg, which hinted that Airbnb is looking to fuel post-pandemic growth by expanding into more international markets, such as Latin America, Asia-Pacific and other unpenetrated markets.

In its most recent third quarter earnings report, the home-sharing firm revealed that markets such as Taiwan, Thailand and Indonesia had experienced particularly strong quarterly growth, while cross-border night bookings rose by 17 per cent on the equivalent quarter a year prior.

Under-penetrated markets that Airbnb is targeting for expansion include the likes of Germany, Brazil and South Korea.

Airbnb has already partnered with American fintech firm Payoneer to enable hosts in multiple countries to get paid in their local currencies. Last year, the company also announced a partnership with Swedish fintech Klarna to give guests the option to ‘pay over time’ across several interest-free instalments and additional flexible payment plans.

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