NEW YORK — One of the most frustrating things about booking an Airbnb has been the additional fees that often drive up the price of what was once seen as a budget-friendly option compared to hotels. However, this is changing starting Monday as the platform will now show the total price by default.
All users will immediately see the complete cost of their stay, including any fees and taxes, right from the start. This is a departure from the previous practice of displaying prices based solely on the nightly rate. The decision to update pricing is part of Airbnb’s commitment to prioritizing “affordability and transparency,” as stated in a recent blog post.
Airbnb’s adjustments come in anticipation of new federal regulations in the United States regarding hidden fees, which are scheduled to take effect on May 12. The Federal Trade Commission introduced these rules late last year to prohibit hotels, ticketing agencies, and short-term rental companies from including undisclosed charges in the total price.
Rather than consumers getting hit with “convenience” or “service” fees for hotel bookings and concert tickets at checkout, the rule will ensure that pricing information is presented transparently before consumers agree to pay, the agency previously announced.
The final rule does not limit what sellers can charge for a product or service. Instead, it requires businesses to display the total price, including all additional fees, more prominently than other pricing information.
Airbnb began displaying total prices on default in 2019 in several parts of Australia, Canada and Europe. The change rolled out as an option to Canada and the US in 2022, with nearly 17 million guests having used the feature since then, the company said.
The company has credited the tool for lowering cleaning fees from hosts. In 2023, Airbnb said that nearly 300,000 listings removed or lowered their fees after it launched the tool, with 40% of active listings eliminating their cleaning fee.
