Oops! Something went wrong while submitting the form.
Oops! Something went wrong while submitting the form.
.png)
Airbnb recently made a platform-wide change to how prices are displayed to guests. Instead of showing a base rate with separate line items for cleaning fees, service charges, and taxes, guests now see an “all-in” nightly rate as a single number calculated by dividing the total booking cost by the number of nights.
This change may be Airbnb’s way of complying with the U.S. Federal Trade Commission’s Price Transparency Rule, which takes effect in May 2025. The rule requires platforms to show the full price upfront, including all mandatory fees, so guests aren’t misled by hidden costs. While this helps avoid bait-and-switch pricing, it has also created unintended confusion, especially for short stays where cleaning fees inflate the average nightly rate.
Let’s break down what’s happening, why it matters, and how you as a host can respond to protect your bookings and clarify your pricing.
Before this update, guests would typically see:
Now, Airbnb has rolled everything into a single number known as “Price Details” which averages out the entire cost and shows it as a flat “per night” price. For example, if your listing is $300 per night with a $150 cleaning fee and a $100 Airbnb service fee for a 2-night stay, Airbnb now shows something like:
Before this update, guests would typically see:
Here’s how Airbnb calculates the “Price Details”:
Step 1: Calculate the total cost
$300 × 2 nights = $600
$600 + $150 (cleaning fee) = $750
$750 + $100 (Airbnb service fee) = $850 total
Step 2: Divide total by number of nights
$850 ÷ 2 nights = $425 per night
So Airbnb now displays something like:
$425/night for 2 nights
The problem? This can confuse guests because it looks **like you’re charging $425 every night, when in reality your base rate is only $300. The cleaning fee and Airbnb fee are being averaged in, which makes the nightly rate look inflated, especially for shorter stays and guests may think your place is just expensive. And that may turn them away before they realize the price actually drops for longer stays.
So, what can you do?
Since you can’t change how Airbnb displays prices, you can take control of your listing description.
Here’s an example of how to clearly explain your pricing:
Pricing Transparency:
Example stays:
This helps guests understand what’s included and encourages longer bookings.
The beginning of your description matters. Guests scanning listings often only read the first few lines. Make them count.
Try a line like:
“Oceanfront escape – nightly rate drops with longer stays!”
This reassures guests that the price they’re seeing isn’t the full story.
Most guests scroll through photos before reading the full description. Add a simple image that breaks down your pricing by night count.
Example image:
Price Breakdown:
2 Nights – $476/night
3 Nights – $393/night
4 Nights – $360/night
Includes cleaning & Airbnb fees
Use free tools like Canva to create the graphic and label it “How pricing works.”
If your main description is already packed with property details, use the ‘Other Things to Note’ section to clarify pricing. Airbnb gives you multiple sections, use them strategically.
Whenever a guest sends a question or booking inquiry, follow up with something like:
“Just a heads-up: Airbnb now averages out the total price, including the one-time cleaning fee, across all nights. That can make short stays look more expensive. If you’re booking 3+ nights, the average nightly price drops quite a bit. Let me know if you want the breakdown!”
This helps educate the guest and positions you as transparent and helpful.
To make your listing more appealing and mitigate sticker shock, use Airbnb’s built-in discount tools:
Mention these discounts in your listing description so guests know there’s better value the longer they stay.
If you’re getting a lot of drop-off from short-stay guests, consider reducing your cleaning fee slightly and adjusting the base price to balance things out.
For example:
This reduces the upfront sticker shock for 2-night stays while maintaining your overall income. Test and see what works best in your market.
If you’ve had a few successful bookings since the change, encourage guests to mention “transparent pricing” or “worth the rate” in their reviews. Social proof can help reassure future guests.
You can also include a short section in your digital guest guide or Touch Stay explaining pricing for future stays.
Want to quickly update your listing? Here’s a short paragraph you can copy and paste into your description:
Note on Pricing:
Airbnb now shows an average nightly price that includes one-time fees like cleaning and service charges. My base rate is $340 per night + a $200 cleaning fee (applied once). The average nightly cost drops with longer stays:
Airbnb’s “Price Details” change was intended to simplify pricing, but for many hosts, it’s had the opposite effect. While we can’t control Airbnb’s interface, we can control how we communicate.
Transparency builds trust. A clear explanation can turn confusion into confidence, and that can mean more bookings, better reviews, and happier guests.
If you found this helpful, share it with a fellow host. Lodge Compliance is your trusted partner if you need help with tax filing, tax permits, STR licensing, or staying compliant with local rental regulations, we've got you covered. Get started here and make compliance simple.
.png){kind=logo}
