Cleaning fee strategy: $0 fee vs $150 fee — tested results

Category: Pricing & Revenue

By: James Wu

Posted: 2026-01-22T16:19:41.643Z

I ran an experiment on my 2 identical studios in Chicago (same building, same floor, same furnishings). For 3 months: - **Unit A:** $110/night + $0 cleaning fee - **Unit B:** $85/night + $140 cleaning fee Same total cost for a 4-night stay ($440 vs $480). Here are the results.

Reply by Ingrid Svensson:

These are the results (I'm the OP): Over 90 days, Unit A (the zero cleaning fee one) got 34 bookings vs 22 for Unit B ($140 fee). Average stay length was shorter on A — 2.8 nights vs 4.1 — which makes sense because short stays hate cleaning fees. Occupancy was 78% vs 64%. Gross revenue: $7,722 vs $5,644. Cleaning costs were higher on A because of more turnovers — $2,720 (34 cleans at $80 each) vs $1,760 (22 cleans). But net after cleaning: $5,002 vs $3,884. **Unit A (zero fee) won decisively.** 55% more bookings and 29% more net revenue. **Why zero-fee wins:** 1. **Better search ranking.** Airbnb's "total price" display is now default in most markets. A zero fee means a lower displayed total for short stays. 2. **More short stays.** Short stays are higher revenue-per-night but get killed by cleaning fees. A 1-night stay at $85 + $140 fee = $225 total (guest sees $225/night effective). Same stay at $110 + $0 = $110 total. 3. **Higher conversion rate.** No sticker shock at checkout. 4. **More bookings = more reviews = better algorithm ranking.** **The trade-off:** More turnovers. Unit A had 34 turnovers vs 22. That's more cleaner coordination and more wear/tear. But the $1,118 profit difference more than covers the extra hassle. **My recommendation:** For studios and 1BR in urban markets with lots of short stays — go $0 or low ($25-50) cleaning fee. For larger properties (3BR+) where turnovers are expensive ($150-200), a moderate cleaning fee ($75-100) makes more sense. Model your own scenarios with the cleaning fee calculator at https://strspecialist.com/tools/cleaning-fee-calculator.

Reply by Chris Nakamura:

This data is gold. I did a similar experiment in Denver and got almost identical results. The zero-fee listing outperformed by about 25% in net revenue. One additional insight: **the zero-fee approach also gets more repeat guests.** When guests see "no cleaning fee" they feel less nickel-and-dimed and are more likely to book again. I have several repeat guests who specifically mention the no-fee as why they chose my place. The only market where I'd keep a high cleaning fee is vacation rentals (beach houses, cabins) where: - Average stay is 5+ nights (fee amortizes well) - Cleaning is genuinely expensive ($150-200) - Guests are comparing against hotels that charge $200+/night anyway - The guest demographic expects it (families plan vacations differently than business travelers) For urban STR targeting business/weekend travelers: zero fee, always.