Airbnb Service Fees update

Airbnb’s New Service Fee Update: What Hosts Need to Know

Airbnb service fees

Airbnb has announced a change to how it charges service fees, starting October 27 2025 for all hosts using property management software (PMS). This update moves from a split-fee structure—where both hosts and guests pay separate service fees—to a single host-only fee of 15.5%.

Previously the host only fee was only enforced for hosts using property management systems outside of the US, and a few other select countries.  Now it will be enforced globally.

If you are already on the host only fee (either have opted in to it, or using a PMS outside US and Mexico plus a few other select countries), the only change is an extra 0.5% commission.  If you are on the split fee and using a PMS though, this change will affect you more!

Note that no changes have been announced for hosts currently on split fee, and not using a PMS.  You are only affected if you have received an email from Airbnb specifically telling you you will have a change in commission fees.

Click here for a link to the full Airbnb article

Here’s what it means for you as a host, your guests, and your pricing strategy.

The Current System (Split Fees)

Until now, Airbnb has typically charged:

  • Hosts: around 3% of the booking total.

  • Guests: 14–20% on top of the booking price.

That means if you set a nightly rate of $100, you’d pocket about $97, while your guest would pay around $115.

The New System (Single Host-Only Fee)

From October 27 2025, if you use PMS, the service fee structure changes:

  • Hosts will pay a flat 15.5% fee (note this is an increase for hosts that are already using the host only fee from 15%)

  • Guests will see no additional service fee—what you set is what they pay.

So, if you set your nightly rate at $115, Airbnb will deduct 15.5%, leaving you with $97.18. The guest pays $115 total, not a cent more.

Note that for taxes, there will be an increase as the taxes are calculated as a % of the accommodation, and in the case above, the acocmmodation price has increased from $100 to $115.  So the guest will end up paying more in taxes

✅ Pros for Hosts

  • Transparent pricing for guests: Not really a pro anymore as recently Airbnb has rolled all pricing into a total price and hidden all fees. Travelers now see one clear price. 

  • Competitive edge: You can better align with direct booking sites or competitors on other platforms.

  • Simplified messaging: No more explaining to guests why Airbnb added fees on top of your price.

  • Easy to action: most PMS offer a “markup” section so it is really easy to implement the increase

  • OTA alignment: This brings it more in line with booking.com, who generally charge 15% commission.  What will be the next move for VRBO?  They currently charge a 5% host fee, 3% payment fee to the host, and around a 10-15% guest fee to the guest.

❌ Cons for Hosts

  • Higher fees to absorb: Hosts now carry the full 15.5% cost, compared to just ~3% before.

  • Need to re-price: If you don’t adjust your rates, your payout will drop significantly.

  • Additional fees: The 15.5% fee also applies to all fees eg dog fee, extra guest fee, so make sure you increase your fees to reflect this too

  • Possible sticker shock: Raising your nightly rate to cover the higher fee might make your listing look more expensive compared to non-Airbnb sites if you don’t manage it carefully.

  • Inflated Earnings: Check with your accountant on any implications for the  inflated earnings.  In some countries you need to declare the Gross price before fees are deducted as your earnings, and whilst you can deduct the fees as an expense, it could have tax implications.

  • Direct Bookings:  If you advertise as being cheaper as “no guest fees” you may have to revist your marketing.  You can still offer a better price direct of course, as you will not be paying the 15.5% fee to Airbnb

What This Means for Hosts

  • Already on the Host only fee?: That fee increases for all bookings that are made from 27th October 2025, to increase your markup slightly to cover this – see the video below to work out how much to mark up

  • Hosts that use a PMS that are currently on the split fee: Expect your fees to jump from ~3% to 15.5%. You must adjust prices to maintain your payouts – 14.8% if you already absorb the current 3% host fee, 18.3% if you want to reflect the total amonet (reverse calculation – see the video below for full explanation). Make sure you review your fees as well.

  • All hosts:

    • Revisit your pricing strategy immediately.

    • Factor in the 15.5% when setting rates. Example: If you want a payout of $100 per night, you’ll need to set your Airbnb price at about $118.30

    • Compare with your direct booking rates and highlight the savings to encourage direct reservations.

    • Communicate value clearly, so guests understand your pricing and the benefits of staying at your property.
      Consider using something like Direct Booking Tools on your website to advertise that your properties are better value direct.

    • Want to know HOW to change your prices?  Check out the video below.

What This Means for Guests

  • Clearer, upfront pricing. The price they see is the price they pay, with no hidden service fee added at checkout.

  • Easier price comparison. Guests can more accurately compare Airbnb with other sites.

  • No more “surprise” fees. A smoother booking experience could reduce cart abandonment at checkout.

Final Thoughts

What will be Airbnb’s next move?  For hosts not using a PMS, they still have the option to stay on the split fee.  Will this be changed in the future to move all hosts to the host only fee?  Possibly, but this has not been confirmed by Airbnb so far, they have only confirmed that most hosts CURRENTLY on the single host only fee structure, will be paying the 15.5% by 1st December latest, if not using a PMS.

Airbnb’s move to a single host-only service fee is designed to simplify pricing and make listings more competitive from a guest’s perspective. While it brings clarity and potential booking advantages, it also shifts the financial burden squarely onto hosts.

The bottom line? Review and adjust your prices on / before October 27 to protect your margins. Use this as an opportunity to review your pricing and highlight the advantages of booking direct.