Airbnb has recently updated its pricing display to enhance transparency and affordability for customers globally. Previously, users could only view the reservation price until checkout, when additional fees were revealed. This change aims to display the total price, inclusive of all charges, during the initial search phase.
The initiative began in 2019, initially implemented in Australia, parts of Europe, Canada, and Korea. Following its success, Airbnb introduced an optional toggle for users in the US and over 200 other regions. By December, more than 17 million users had embraced the feature, prompting Airbnb to standardise the full price display worldwide.
Now, every user can see the complete cost of their stay upfront, including all fees except taxes. This modification is intended to facilitate easier comparisons among different options and help guests book stays that align with their budget. In their announcement, Airbnb highlighted that affordability and transparency are crucial concerns for their community, especially in today’s economic climate.
To assist hosts in navigating guest pricing better, Airbnb has also rolled out various tools over recent years aimed at promoting competitive pricing, including discounts and pricing tips. These tools are designed to encourage hosts to optimise their offerings based on market conditions.
The timing of these changes is notable, as they align with upcoming US federal regulations set to take effect on May 12, which will prohibit hidden fees in pricing. The US Federal Trade Commission has announced new rules forbidding the inclusion of “junk fees” in total pricing for short-term rentals, hotels, and ticketing. Instead, consumers will receive clear pricing information before finalising their purchases, ensuring better disclosure and preventing unexpected charges at checkout.
The regulations do not restrict the amounts that businesses can charge but mandate that the total price, along with all additional fees, must be displayed prominently, enhancing price transparency for consumers.