Airbnb currency conversion fees: protect your profits

If you manage an Airbnb listing, you’re already familiar with service fees and cleaning charges. But there’s another cost many hosts don’t notice until they start comparing their payouts to what they expected, the Airbnb currency conversion fee.

It’s not a headline-grabbing cost like Airbnb’s host-only service fee. Yet over time, it can quietly eat into your profits. For hosts welcoming a steady stream of overseas guests, this hidden fee can mean hundreds of dollars lost each year. Here’s what you need to know, and how to protect your income.

Why the Airbnb currency change matters for Australian hosts

As per the Sharing Economy Reporting Regime (SERR), since 1 July 2024, electronic distribution platforms (EDPs), including Airbnb, must report short-term rental (STR) income in Australian dollars to the ATO to create an even playing field across industries. 

Airbnb sets its payouts in the currency of your bank account, but guests around the world see prices in their own currency. Every time a booking crosses currencies, Airbnb applies a conversion. This usually comes with a spread of about 3%.

That may sound small, but on a $2,000 booking, 3% is $60. Multiply that across ten or twenty international stays a year, and you’re losing hundreds of dollars, before even considering standard service fees.

For many self-managing hosts, these reductions are invisible. The payout appears normal on screen, but when compared with expected earnings, the difference shows. And it’s not always clear where that money went.

How Airbnb’s currency conversion fee works

Airbnb’s approach to conversion is simple in principle but costly in practice:

1. Airbnb sets its own rate. The Airbnb currency fee doesn’t always match market exchange rates.
2. The host absorbs the cost. While guests see their price in their preferred currency, the fee is deducted before your payout lands.
3. Additional costs may apply. If you’re paid via PayPal or a foreign bank, those providers may add their own exchange rate margins or transaction fees.

Can you change currency on Airbnb?

Many hosts and guests want to make sure they’re seeing consistent prices. Airbnb allows you to change the display currency, but the steps differ depending on the device you’re using:

On desktop (Mac or PC)

1. Log in to your Airbnb account.
2. Scroll to the bottom of any Airbnb page.
3. Look for the globe icon and currency selector in the footer.
4. Click it, then select your preferred currency (e.g. AUD).
5. Prices across search results, listings and your calendar will instantly update.

For a permanent update every time you log in:

1. Click your profile photo in the top-right corner.
2. Go to Account > Global preferences > Currency.
3. Choose AUD and save.

On iPhone or iPad

1. Open the Airbnb app.
2. Tap Profile at the bottom-right.
3. Go to Settings > Account > Global preferences.
4. Tap Currency and select AUD.

This will update your display currency across your device, including search results, calendars and messages.

On Android

1. Open the Airbnb app and log in.
2. Tap Profile in the bottom-right corner.
3. Go to Settings > Global preferences > Currency.
4. Select AUD.

Like iOS, this change affects what you see in the app, but not necessarily your payout.

Important notes

• Display currency vs payout currency. Changing the display currency only affects what you see. To ensure your actual income is in AUD, check your payout preferences.
• Payout settings. Go to Account > Payout preferences and confirm your payouts are directed to an Australian bank account in AUD. This prevents Airbnb from applying conversion fees unnecessarily.

Other hidden costs to watch out for

Currency conversion isn’t the only surprise fee that can impact your returns. Self-managing hosts should also keep an eye on:

• Cancellation fees: Airbnb applies penalties if you cancel a confirmed booking.
• Bank or PayPal charges: Even if Airbnb pays you in AUD, your payout method can tack on extra fees.
• GST and local taxes: In Australia, Airbnb may add GST to its service fee. Some states, like Victoria, also apply short-stay levies that affect total income.

Individually, these look small. But together, they can create a noticeable gap between what you think you’ll earn and what arrives in your account.

Airbnb currency fee: Is it the main focus?

It’s easy to stress over every line item in your Airbnb statement. But the reality is the biggest drivers of income aren’t the fees; they’re occupancy and guest demand.

Here’s where your focus should be:

• Nightly pricing: Are your rates competitive with similar properties in your area?
• Occupancy rates: Are you filling your calendar consistently?
• Guest experience: Do your reviews highlight value, comfort and service?

Hometime takes care of these factors, balancing strong occupancy with the best nightly rates. Currency conversion fees and other charges are factored into the bigger picture of maximising your ROI.

How Hometime helps protect your income

At Hometime, we believe hosts should see transparent, reliable earnings without the stress of hidden deductions. Here’s how we help:

• Clear statements: Our homeowner portal shows exactly what you’ve earned and what fees apply, with no hidden surprises.
• Local payouts. We keep everything in AUD, eliminating unnecessary conversions.
• Revenue management. Our revenue specialists adjust nightly rates to cover platform fees, local taxes and seasonal demand, ensuring you’re not left out of pocket.
• Cross-platform optimisation. Unlike self-managing hosts who rely solely on Airbnb, we list properties across Airbnb, Booking.com and Vrbo’s expanded distribution network, including Stayz, Trivago and Expedia, making sure fees are minimised and earnings are maximised.
• Listing optimisation. We fine-tune every listing to boost rankings, stand out in search results, and convert browsers into bookings.
• Professional photography and styling. We showcase your property with high-quality images and on-trend styling to attract more bookings at higher nightly rates.
• Hotel-quality Airbnb cleaning. While an Airbnb welcome gift is a thoughtful touch, what guests value most is a sparkling clean home, and that’s reflected in guest reviews. With our trusted network of cleaners, your guests can count on a spotless, welcoming space every time.
• Property maintenance. Our designated on-the-ground, local hosts manage upkeep and respond quickly to repairs, keeping your property in mint condition and your guests happy.

Protect your Airbnb earnings with Hometime

Airbnb’s currency conversion fee may seem like a minor technicality, but for hosts welcoming overseas guests, it adds up. A few dollars lost here and there can turn into hundreds across the year.

By locking your listing and payout to AUD, avoiding third-party payment platforms and working with a professional property manager like Hometime, you can keep more of your hard-earned income.

Instead of worrying about hidden deductions, you can focus on what matters: providing a great guest experience and watching your property deliver consistent returns.

Get your free earnings estimate today and see how much your Airbnb could generate with Hometime managing the details.