Lawmakers and consumer groups are pressuring Airbnb, Vrbo and other short-term rental platforms — as well as conventional hotels — to include all charges (such as cleaning and service fees) into the advertised nightly rate. hugomartin reports:
Juan Herrera, a graduate student from San Diego, was searching the Airbnb booking site for a place to rent in Los Angeles for New Year’s Eve when he was surprised to see that several extra fees were added to the nightly rate, pushing the total cost of the trip out of his price range.
Advertising the full rate “shouldn’t be hard to do,” said Anna Laitin, director of financial policy for Consumer Reports, which endorsed the legislation by Reps. Eddie Bernice Johnson and Jeff Fortenberry . “There are ways to do it and do it well.” Home sharing gained popularity primarily because such lodging, ranging from a single room to an entire house, was typically offered for a much lower rate than rooms at traditional hotels. But Airbnb customers have begun to complain on social media sites that short-term rental hosts have become increasingly misleading by advertising nightly rates that don’t include the extra fees that are added once it’s time to book the stay.
The cleaning fee was as high or higher than the nightly rate in 13% of the listings in Los Angeles, according to The Times analysis. At least a thousand more listings charged a cleaning fee that was only $10 less than the amount of a night’s stay. That explains why a “penthouse resort” in downtown Los Angeles was advertised on Vrbo.com recently for $199 a night but actually costs $369 when the $95 cleaning fee, $34 service fee and $41 lodging tax are added.
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