How Airbnb pricing works for holiday apartments
Deciding what to charge for a holiday apartment can feel overwhelming at first.
To price your property effectively, you need to understand how Airbnb and its pricing arrangements work. From there, develop a pricing strategy that supports your objectives.
The team at Alehost explains this first step towards a listing that is both appealing and effective.
How does pricing work on Airbnb?
Airbnb is a tourist accommodation platform offering many types of privately owned property to guests. Each apartment is marketed through a listing with its own booking availability, meaning only one booking can occupy the property for the same dates. Once booked, those dates are no longer available on the listing.
Each listing has its own calendar and pricing settings. Discounts, promotions and rate options supported by Airbnb can then apply; always check what the traveller sees for the specific dates.
Airbnb’s base price
Pricing settings support different adjustments and, where the listing qualifies, a non-refundable option alongside the usual rate. Do not assume that only one cancellation or price option can be displayed.
Distinguish the nightly price from the final stay total. Applicable charges, discounts and taxes can change what the guest sees; check through a test search for specific dates and occupants.
The platform may suggest a base rate from the listing’s characteristics, but we recommend that you research the market yourself. Analyse the property’s surroundings and circumstances, make your own calculations and assess the price you want to set.
You can vary the base nightly rate according to demand, raising it during busy periods and reducing it when demand falls. Adjust it to suit your approach.
Smart Pricing
Airbnb also includes a tool that can assist with revenue management. It automatically adapts nightly rates according to demand, location, property features, season and other factors.
Airbnb offers Smart Pricing. Check its availability and settings for your listing, set limits and review sensitive dates; it should not be described as a feature unavailable in Spain.
To pursue stronger performance, keep your listing’s prices under review with all relevant factors in mind. Trained specialists and businesses such as Alehost can help optimise your holiday apartment’s pricing and performance.
Other Airbnb charges
When guests book your accommodation, they may pay more than the base nightly rate. Consider the following additional charges:
1. Cleaning fee (optional):
The cleaning fee Airbnb lets you apply is intended to cover cleaning and maintenance costs for the holiday apartment.
If you charge a cleaning fee, configure it in the appropriate listing section and check its effect on the total price. Do not hide it or request an external payment that breaches platform terms.
2. Airbnb service fee
This fee is imposed by the platform and charged when a booking is made to support the operation of the service.
The mandatory fee may be borne 100% by the host or split between host and guest.
- The split-fee structure divides the commission between host and traveller. Airbnb is phasing it out; check the structure applicable to your account and each booking before forecasting income.
- Under the single-fee structure, Airbnb deducts the fee from the host’s payout. Check the current breakdown for the percentage and terms: not all hosts can freely choose between structures, and income should not be calculated using a fixed historical percentage.
3. Security deposit
A security deposit and damage protection are different concepts. Airbnb restricts the circumstances in which a host may request a deposit; it is not a condition every host can impose independently.
- Most hosts cannot charge security deposits. Airbnb provides exceptions for certain accommodation or integrations, subject to its terms and the information that must be shown before booking.
Do not assume that money is automatically held two days before arrival. Check the deposit or claims terms that actually apply to your property and booking.
- Before configuring a deposit, confirm that your accommodation falls within an exception allowed by Airbnb. To report damage, follow its procedure and retain evidence; platform protection does not automatically replace your own insurance.
4. Additional guest fee (optional)
Above a specified number of people, you may add a charge for each extra guest to help cover additional utility and supply costs.
5. Local taxes
In Spain, distinguish taxes on accommodation from VAT on platform commissions. Holiday letting is not automatically subject to VAT: providing services characteristic of the hotel industry can change its treatment. Also check whether a local or regional tourism tax applies at the destination.
Additional services
If you offer extra services, the recommendation from Alehost is to show them and their prices in the listing, or explain them before the guest books, to avoid unexpected charges that affect satisfaction.
Examples include check-in outside a specified time window, transfers and late check-out.
Airbnb cancellation policies
Airbnb offers several cancellation policies and may amend their terms. Check the options available for your listing and the rules of the specific booking, including deadlines, exceptions and non-refundable options.
- Flexibility for travellers: a more generous cancellation window may make booking easier, but leaves the host with greater uncertainty.
- Income forecasting: compare the permitted cancellation window with the time your property usually needs to resell a released night.
- Individual booking terms: check the refund amount and deadlines shown by Airbnb, including exceptions. Do not apply a historical table to all current bookings.
Monthly stays have specific cancellation and payment terms. Check the length of stay that triggers them and the policy shown when booking; do not automatically apply short-stay rules.
Guest payments
The guest’s payment amount and schedule are shown during booking. Payment options or specific conditions may apply; do not assume every booking is paid in full immediately upon confirmation.
Set up and verify a host payout method in your account. Guest payment methods are not necessarily the same as the methods available for receiving income; options depend on the country and account.
Airbnb shows listing prices in the guest’s chosen currency, with conversion relating to the currency selected for your payout.
The payout release date and the date money reaches your account may differ. Check each booking’s payout schedule and the processing time for your chosen method, especially for long stays or accounts with particular conditions.
We hope this article clarifies Airbnb’s pricing arrangements. Contact us if you have further questions.
Check the outcome before opening your calendar
Run a test search with realistic dates and guest numbers. Compare the traveller’s total payment with your expected payout, review combined discounts, cleaning and cancellation terms, and calculate the margin after stay-related costs.
Consult the official rules on fees, non-refundable options, Smart Pricing and security deposits. For accommodation taxes, review the Spanish Tax Agency’s VAT guidance.
If you need to coordinate rates and calendars across channels, explore our remote rental management.
For a specific booking, see where to check its cancellation policy.
