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What is an Extra Guest Fee?
An extra guest fee is a per-person, per-night charge for guests exceeding a predetermined threshold set by the host. This fee is designed to cover the additional costs associated with a larger group, such as increased utility consumption, more wear and tear on the property and furnishings, and the use of extra linens and amenities.
It allows hosts to price their property fairly for different group sizes.
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How it works
A host first establishes a base rate that includes a specific number of guests (e.g., 1-4 people). They then define a maximum occupancy for the rental.
For any guest who books above the base number but within the maximum limit, a pre-set fee is automatically added to the nightly rate for each additional person. This is configured in the pricing settings of an Online Travel Agency (OTA) or a property management system.
The total cost is then presented to the guest during the booking process.
Why it matters
Implementing an extra guest fee allows hosts to maintain a competitive base price that appeals to smaller groups while ensuring they are compensated for the greater impact of larger parties. This pricing strategy helps cover variable costs and dissuades guests from misrepresenting the size of their group. Vacation rental software, such as Lodgify, allows hosts to easily automate the application of these fees based on the number of guests in a reservation, ensuring accurate pricing across all booking channels.
Examples
- The host of a three-bedroom mountain cabin sets the base rate for up to 6 guests. For each additional person, up to a maximum of 8, they charge an extra guest fee of $30 per person, per night. A group of 8 booking for a weekend would pay an additional $120 ($30 x 2 guests x 2 nights).
- A beachfront condo lists a rate for 2 guests to attract couples. The property can sleep 4. The owner sets a $25 per night fee for the third and fourth guest. A family of four pays an extra $50 per night compared to a couple.
- A host notices that groups larger than four consistently use more supplies and require longer cleaning times. To cover these costs without raising the base rate, they add a $20 extra guest fee for the 5th and 6th guests.
- During the off-season, a host waives their usual extra guest fee for a large villa to incentivize group bookings and increase occupancy.
Frequently asked questions
How much should I charge as an extra guest fee?+
Should extra guest fees apply to children and infants?+
How is an extra guest fee different from a penalty for undeclared guests?+
Where can I set up an extra guest fee for my rental?+
Related terms
Base Rate
The base rate is the standard, default price for a vacation rental property per night before any dynamic adjustments, seasonal rules, discounts, or additional…
Maximum Occupancy
Maximum occupancy refers to the total number of guests, including adults, children, and infants, legally and safely permitted to stay in a vacation rental…
Nightly Rate
The nightly rate is the base price a vacation rental property charges for a single night's stay. This rate excludes additional costs like cleaning fees…
Cleaning Fee
A one-time charge added to a guest's reservation total to cover the cost of cleaning the property after their stay.