Airbnb is changing its pricing policy: Starting today (Monday), all users on the platform will by default see the total cost of the stay – including fees and taxes, depending on the location.
This is a significant shift from the previous policy, which displayed only the nightly rate and left the final price as a surprise for later in the booking process.
Airbnb explains that the update is part of the company’s commitment to “fairness and transparency,” as stated in a post on the company’s official blog. It is also a response to new federal regulations set to take effect in the United States on May 12, which prohibit the display of hidden “junk fees” when booking services like lodging, event tickets, and more.
The U.S. Federal Trade Commission (FTC) announced the new rules at the end of last year, aiming to ensure that the final price is displayed transparently at the beginning of the purchasing process. “Instead of consumers being hit with ‘convenience’ or ‘service’ fees at checkout, the rule will ensure that pricing information is clearly presented before consumers agree to pay,” the agency stated. The rules do not limit the price businesses can charge – but they do require businesses to display the total price more prominently and clearly.
Airbnb has already tested the total pricing model in pilot programs in Australia, Canada, and Europe since 2019. In 2022, this option became available in the United States and Canada – and since then, according to the company, nearly 17 million guests have used it.
The company also claims that the change led to a reduction in cleaning fees charged by hosts. In 2023, according to Airbnb, about 300,000 properties removed or reduced their cleaning fees – with 40% of active listings eliminating these fees entirely.