In Airbnb, the guest pays for their stay, with Airbnb holding the funds until after the check-in process is complete.
Understanding Airbnb Payments
When a guest makes a booking on Airbnb, they are responsible for paying the total cost of their reservation. This payment covers the accommodation fee, cleaning fees, and any other charges imposed by the host, along with Airbnb's own guest service fees. The money is then held by Airbnb to ensure a secure transaction for both parties.
For hosts, once a booking is confirmed, whether through an instant booking feature (which processes immediately) or after the host accepts the booking within a 24-hour window, the payment process for the guest begins. Airbnb acts as an intermediary, collecting payment from the guest and later disbursing it to the host.
The Guest's Payment Journey
The payment process for guests is designed to be straightforward and secure:
- Booking Confirmation & Payment: When a guest confirms a reservation, they are prompted to provide their payment information. Airbnb immediately processes the payment for their stay.
- Payment Held by Airbnb: Crucially, the guest pays for their stay, and the money is held by Airbnb. This means that while the guest's payment method is charged, the funds are not immediately released to the host.
- Host Acceptance: If the host has instant booking activated, the booking is confirmed straight away. If not, the host has 24 hours to accept or decline the booking. The payment is processed regardless, but will be refunded if the host declines.
- Funds Released to Host: Airbnb typically releases the payout to the host approximately 24 hours after the guest's scheduled check-in time. This delay allows for a brief window to address any immediate check-in issues.
Guests can use various payment methods, including major credit cards, debit cards, and sometimes local payment options, depending on their region. For more details on payment methods, refer to Airbnb's official payment options guide.
How Hosts Get Paid
Hosts don't directly receive payment from the guest. Instead, Airbnb manages the financial transaction:
- Secure Fund Holding: Airbnb holds the guest's payment securely.
- Payout Initiation: After the guest checks in, and typically around 24 hours post-check-in, Airbnb initiates the payout to the host.
- Payout Methods: Hosts can choose from several payout methods, such as direct deposit, PayPal, or Payoneer, with transfer times varying based on the selected method and financial institution.
- Host Service Fees Deducted: Before the payout is sent, any applicable host service fees are deducted by Airbnb.
Airbnb Service Fees: Who Pays What?
While the guest pays the overall booking cost, both guests and hosts generally pay service fees to Airbnb for using its platform. These fees help cover the costs of running Airbnb, including customer support, payment processing, and product development.
Guest Service Fees
Guests typically pay a service fee, which is usually between 0% and 14.2% of the booking subtotal (the nightly rate plus cleaning fee, but excluding taxes). This fee is displayed to the guest before they confirm their reservation.
Host Service Fees
Hosts also pay a service fee, which can vary depending on their pricing structure.
- Split-Fee: In this model, hosts pay a fee of 3%, though some may pay more (e.g., hosts of Airbnb Luxe listings). The guest pays a separate service fee.
- Host-Only Fee: Some hosts, especially those with traditional hospitality businesses or using third-party software, opt for a host-only fee structure, where they pay a higher fee (typically 14-16%) and no guest service fee is charged.
For a comprehensive understanding of service fees, visit Airbnb's service fee explanation.
Payment Breakdown Summary
Here's a quick overview of who pays what on the Airbnb platform:
| Party | What They Pay | What They Receive |
|---|---|---|
| Guest | Total booking cost (accommodation, cleaning, taxes, guest service fees) | Confirmed reservation, stay at the property |
| Host | Host service fees (deducted from payout) | Payout for the stay (guest payment minus host service fees) |
| Airbnb | N/A | Guest service fees, Host service fees |
Important Payment Considerations
- Cancellation Policies: Both guests and hosts should be aware of the cancellation policy chosen by the host, as it dictates refunds and potential charges for cancellations.
- Security Deposits: In some cases, hosts may require a security deposit, which is authorized on the guest's payment method but only charged if damages occur.
- Currency Exchange: For international bookings, currency exchange rates and associated fees may apply, affecting the final amount paid by the guest or received by the host.
