After AirBnB conducted an online survey by DKC Analytics; they found that providing the ability for cost splitting on the platform would enhance their users’ experience. They are the first accommodation provider to build a tool that allows the cost of a trip to be Split, amongst the group members and is one of their latest service enhancements.The cost-splitting-tool allows accommodation seekers, in all 191 countries, to benefit from this feature.
How does the new cost-splitting-tool affect the Airbnb platform?
- Airbnb allows users the ability to make online reservations for accommodation.
- A user is then able to invite friends to pay, by sending an email or a link to the reservation.
- The payment can be divided into shares, but the reservation is put on hold until all parties have paid their portion. The accommodation listing is unavailable until payment is made.
- Members of a Travel group will be notified via email of what their share is to be paid on the platform.
- If a group member does not have an Airbnb account; they will have to sign up for one.
- Accommodation seekers have until 72 hours to make payment, which will be canceled if all payments are not received within that time.
- Once a reservation is canceled, partial reimbursement of funds is made to those who paid.
- Travelers can avoid this by paying on behalf of a group member or can even pay more than what they are meant to pay.
- In order to check on the status of an outing; accommodation seekers can view the status in Your Trips.
- If members find that parts of the trip are unpaid for by certain members; sending a message to pay via the application can be done too.
Some terms and conditions of the accommodation-seeking platform
- The cost splitting tool works for groups of up to 16 travelers.
- The reservation must begin at least 10 days from when the booking is made.
- The stay can only be for less than 27 days.
Interesting details uncovered prior to cost splitting tool:
- With New Year’s Eve being the biggest night for group stays for Airbnb, alleviating the organizer from footing the bill or most of it, is now possible.
- The accommodation provider noted that 15.5 million groups took trips on the platform and average stays were in the region of 3.5 days.
- Airbnb also revealed in the testing conducted in previous months, that this tool led to one or more new users on the platform.
- More than 88000 groups used this feature from 175 countries, using over 44 different currencies.
- Airbnb’s research uncovered that 29 percent of American travelers had a falling out with friends over unpaid group money collections.
- 18 percent of group trip takers lost more than $10000 or more in the last 5 years.
Whilst this is innovation within the accommodation industry and part of the company's activities for rapid expansion, a lot still relies on the members of a travel group.The onus lies with the organizer, and other group members to choose responsible companions to socialize with. If not, the other members could find themselves out of pocket soon.
