Airbnb's Host-Only Fee: What Hosts Must Know
Airbnb’s new mandatory host-only fee marks a major shift in how hosts get paid, raising service fees to 15.5% and eliminating the old split-fee model. To protect your revenue and stay competitive, hosts must understand the new structure and strategically adjust pricing before the change takes full effect.
Kailen Wilkerson
Short-Term Rental Specialized Realtor
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Airbnb's Host-Only Fee: What Hosts Must Know
Airbnb has long been a dominant force in the short-term rental market, offering a platform for property owners to connect with travelers worldwide. However, the landscape is shifting. In a significant move, Airbnb is rolling out a mandatory host-only fee structure, which will change how hosts get paid and how guests see prices.
This change is more than just a minor tweak; it's a fundamental alteration to the platform's pricing model that will impact every host's bottom line. For short-term rental (STR) investors, understanding and adapting to this new fee is crucial for maximizing revenue and staying competitive.
Our goal is to ensure our clients and potential clients are equipped for success in the STR real estate market. My name is Kailen Wilkerson, and alongside my colleague Joshua Guerra, we are dedicated to helping investors navigate these industry changes. This post will break down everything you need to know about Airbnb's new host-only fee and provide actionable steps to adapt your pricing strategy.
What is the Airbnb Host-Only Fee?
To understand the new model, it helps to first look at the old one. Previously, Airbnb used a "split-fee" model. Under this structure, hosts paid a small service fee (typically around 3%), while guests were charged a separate fee of 14-16% on top of the listed price.
The new host-only fee model eliminates the separate guest service fee. Instead, hosts will pay a single, higher service fee of 15.5% (or 16% for properties in Brazil). This fee is calculated on the total booking subtotal, which includes the nightly rate, cleaning fees, and any other mandatory charges like pet or extra guest fees. The entire fee is then deducted directly from the host's payout.
Timeline for Implementation
The transition to the host-only fee is being rolled out in phases. Here are the key dates to keep in mind:
Starting August 25, 2025: New hosts connecting their listings through a Property Management System (PMS) will be automatically placed on the host-only fee model.
Starting October 27, 2025: The majority of existing hosts worldwide who use a PMS will be transitioned to the new 15.5% fee structure.
Starting December 1, 2025: Hosts who do not use a PMS but are already on a simplified pricing plan will also be moved to the standard 15.5% fee.
How to Adjust Your Pricing
Simply absorbing the new 15.5% fee will lead to a significant drop in your net earnings. To maintain your current payout, you'll need to adjust your listing prices.
The goal is to increase your price so that after Airbnb deducts its 15.5% fee, you are left with the same amount you would have earned under the old split-fee model.
The recommended formula to calculate your new price is:
New Price = Old Price × 1.1479
This equates to increasing your host-charged amounts by approximately 14.8%. For U.S. hosts connected to a PMS, the advice is to update your channel markup for Airbnb to around 18.3%. This adjustment ensures that the final price guests see is similar to what they would have paid under the old model, and your net payout remains consistent.
Use Data to Your Advantage
Adjusting your rates isn't just about math; it's also about market dynamics. It's essential to see how your new pricing compares to competitors in your area. Tools can be invaluable here to allow you to compare your updated pricing against the market to ensure you remain competitive while protecting your profitability. If you research dynamic pricing software for short-term rentals, you will see there are a ton of options.
Why is Airbnb Making This Change?
This move is primarily driven by two key factors: competition and transparency.
Aligning with Competitors: Major competitors like Booking.com have long used a host-only commission model. By standardizing its fee structure, Airbnb aligns itself with industry norms, making it easier for property managers who list on multiple platforms to manage their pricing.
Improving Guest Transparency: Research has shown that displaying an all-inclusive price upfront improves conversion rates. Under the host-only model, the price a guest sees in the search results is the final price they pay (before taxes). This eliminates the surprise of a high service fee at checkout, creating a more transparent and trustworthy booking experience.
Comparison with Competitors
How does Airbnb's new fee structure stack up against other major players?
Vrbo: Vrbo’s fee structure is different. Hosts typically pay an approximate 5% commission, plus a 3% payment processing fee. Guests, on the other hand, are often charged a separate service fee.
Booking.com: This platform operates on a host-only commission model. The base commission is 15%, but it can often be higher. When you factor in payment processing fees (usually 1-3%) and optional programs to boost visibility, the total commission can reach 18-20% or more.
With this change, Airbnb's fee structure becomes much more comparable to Booking.com, creating a more uniform landscape for hosts managing listings across these platforms.
How We Can Help
Navigating changes in the short-term rental market can be complex, especially for investors managing multiple properties. This is where expert guidance becomes indispensable. As specialists in the California STR market, Joshua Guerra and Kailen Wilkerson from have the expertise to help you thrive.
Prepare Your Portfolio for the Future
The shift to a mandatory host-only fee is one of the most significant changes Airbnb has implemented in years. While it requires an immediate adjustment from hosts, it ultimately aims to create a more transparent and competitive marketplace. By understanding the new fee, adjusting your pricing strategy accordingly, and staying informed about market trends, you can ensure your short-term rental business remains profitable.
If you’re an STR investor in California and need expert guidance to navigate these changes or optimize your portfolio, don't hesitate to reach out. Contact Joshua Guerra and Kailen Wilkerson today and let us help you achieve your investment goals.
