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.

Don't miss our page on Facebook!