However, there is strong variance between markets, with some down in the single digits while others are approaching 40%. When we examine the approximately 300 largest markets in the United States, the average percent of the total cost of reservations made up by fees is 19.6%. 1 Revenue Management Platform for short-term rental managers &. It’s no surprise that different property managers and the regions they reside in all have different approaches towards fees. 1063 likes 7 talking about this 9 were here. Pricing information for Beyond Compare is supplied by the software provider or retrieved from publicly accessible pricing materials. ![]() Beyond Compare 4 Multi Platform, Std Edition, per user. Therefore, for this study, we don’t break down fees by type. Beyond Compare 4 Multi Platform, Pro Edition, per user. To ensure we’re measuring fees proportionally across different types of listings, the main metric we’re going to use is “% of total guest cost (excluding taxes) that come from fees.”Īs we’re comparing 12 million reservations across different markets and property management systems, this was the most standard metric that could be applied. Before we dive in, however, let’s clarify a couple of points. ![]() In order to get a better, unbiased understanding of how fees are being used in the short-term rental market, we took a look at what the data is telling us. The dual-purpose of fees means they can get quite confusing, especially when trying to match what the competition is doing, or managing guests' perceptions. In our industry, fees walk the fine line between needing to cover operational costs and being a mini-pocket of revenue that helps increase margins. ![]() Cleaning, administrative or processing fees can now play a central and sometimes controversial role in the profitability of a listing. As the short-term rental industry has grown, so has the variety of different revenue sources - one of the largest being additional fees. A complete revenue management strategy considers and optimizes all sources of income.
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