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What are Custom Fees?
Custom fees are specific, non-standard charges added to a vacation rental booking to cover costs or services not included in the base nightly rate. Unlike standard charges like cleaning fees or taxes, custom fees are often optional or conditional.
Examples include pet fees, early check-in or late check-out fees, charges for equipment rental like kayaks or cribs, or fees for services like pool heating. Property managers can typically configure these fees within their property management system (PMS) or directly on an online travel agency (OTA), specifying the amount, type (e.g., per stay, per night), and applicability.
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How it works
Property managers create custom fees by defining their name, amount, and calculation method—such as a flat fee per stay, a charge per night, or a fee per guest. They can also set rules for when a fee applies, for instance, making a pool heating fee available only during certain months.
When a guest makes a reservation through a direct booking channel or an OTA, the system automatically presents and adds applicable fees based on the guest's selections or the booking's parameters. More details on setting up these charges can be found in guides on booking system features.
Why it matters
Custom fees allow hosts to generate ancillary revenue from extra services and accurately recover specific operational costs. They provide greater pricing transparency by itemizing charges, which can enhance guest trust.
This flexibility enables managers to cater to diverse guest needs—like accommodating pets or offering early arrivals—without building every potential cost into a higher base rate for all guests. This approach supports a more granular pricing strategy.
Examples
- A host on Vrbo adds a $100 "Pet Fee" as a one-time charge for guests bringing a dog.
- A property manager using a direct booking website offers a "Pool Heating Fee" of $50 per night, which guests can select during the booking process for stays between October and April.
- An Airbnb host sets up a $75 "Late Check-out Fee" for guests who request to stay past the standard 11 AM check-out time, applied manually after guest confirmation.
- A luxury rental agency charges a "Concierge Service Fee" of $200 per stay for guests who want pre-arrival grocery stocking and activity booking.
Frequently asked questions
How are custom fees different from a security deposit?+
Can I add a custom fee after a guest has already booked?+
Do OTAs like Airbnb and Vrbo take a commission on custom fees?+
Related terms
Cleaning Fee
A one-time charge added to a guest's reservation total to cover the cost of cleaning the property after their stay.
Security Deposit
A refundable sum collected from a guest before check-in to cover potential damages, excessive cleaning, or rule violations during their stay.
Revenue Management
Revenue management is the strategic process of using data analytics to predict consumer behavior and optimize pricing and inventory availability to maximize…
Advance Payment
An advance payment is a sum of money paid by a guest before the check-in date to secure their booking, often representing a portion of the total reservation…