Airbnb’s latest update means most hosts will soon transition to a 15.5% host-only fee (16% in Brazil). The split-fee model, where hosts paid 3% and guests paid 14–16%, is being phased out between October 27, 2025 (PMS-connected hosts) and December 1, 2025 (individual hosts).
On the surface, this looks like a major increase for hosts. But the reality is different:
- Guests are no longer paying a separate service fee.
- Airbnb displays the total price (excluding taxes) directly in search results.
- Ranking is based on that total price, not how the fee is structured.
In other words, the change doesn’t harm your competitiveness if you adjust correctly. What has changed most is Airbnb’s take rate, their share of booking value, which continues to creep up. In this blog we will go deeper into how you should react to this change in the Airbnb fee structure.
The evolution of Airbnb’s fees
When Airbnb launched, its fee system looked simple: hosts paid a small 3% service fee, while guests carried the larger 14–16% share. This “split-fee” model worked for years, but it also led to growing frustration among travelers. Guests would click into what looked like a competitive nightly rate, only to abandon their booking at checkout after discovering hefty add-on charges.
Over time, Airbnb realized that the lack of transparency was eroding trust and conversion. Hotels, Airbnb’s main competitor, had long displayed all-in prices, while online travel agencies like Booking.com had trained travelers to expect clarity. To stay competitive, Airbnb began shifting toward a host-only fee model, where the service fee was bundled into the nightly rate, giving guests a single, upfront price.
Fast forward to 2025, and Airbnb is finalizing that transition. The company has announced that by October 27, 2025, most PMS-connected (software-connected) hosts will be automatically moved to a 15.5% host-only fee (16% in Brazil). By December 1, 2025, most individual hosts will also be transitioned. The split-fee option will effectively disappear for the majority of listings.
For many hosts, the announcement sparked concern: would higher host fees mean reduced visibility, lower search rankings, and thinner margins? The short answer: no, not if you adapt your pricing strategy and understand how Airbnb’s search algorithm prioritizes total guest price.
Why transparency is crucial for guest trust & booking conversion
For today’s travelers, transparency is non-negotiable. Guests want to know exactly what they’re paying upfront, no hidden surprises, no checkout sticker shock.
- Abandoned bookings: Airbnb discovered that many travelers abandoned reservations the moment they saw unexpected service fees added at the last step.
- Trust building: Showing the full cost upfront improves trust, aligning Airbnb with how hotels have displayed rates for decades.
- Higher conversion: Airbnb’s own data shows that listings using the host-only fee model experienced up to a 17% increase in bookings because guests saw clarity and consistency.
Together, these moves shifted Airbnb toward hotel-style pricing transparency.
The new update: 15.5% host-only fee on Airbnb
This is not the first time Airbnb has adjusted fees, but it is the most standardized. For hosts in Europe, this is a small shift (from ~15% to 15.5%). For many U.S. managers, it’s a major leap from 3% to 15.5%.
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Yet the critical point is this:
- Guests don’t see the breakdown.
- Airbnb now bases ranking on the total guest-facing price.
- What changes is Airbnb’s margin capture, not your competitiveness.
The revenue management perspective
Pricing adjustments and elasticity
Revenue management is about balancing payout protection with demand sensitivity. Raising rates by ~14.8% will preserve your payout. But in highly price-sensitive markets, you may decide to adjust less aggressively, protecting conversion at the cost of slightly lower margins.
Competitor benchmarking
Vrbo: Hosts typically pay around 8% in commissions, while guests shoulder an additional 6–15% service fee. This makes Vrbo structurally cheaper for hosts, but often more expensive for guests, since the guest-facing total is inflated by the service fee.
Booking.com: Host commissions start at 15%, but many property managers end up paying 18–20%+ when factoring in Preferred Program fees and payment processing costs. For hosts, Booking.com is usually the most expensive channel — but its reach makes it unavoidable in many markets.
Airbnb: With the new 15.5% host-only fee, the cost to hosts is now higher than Vrbo, but it comes with a cleaner presentation for guests. Because there is no separate service fee, Airbnb’s pricing often looks more transparent and competitive at checkout, which can boost conversion.
What this means for revenue management
From a strategic perspective:
- Airbnb is now more expensive for hosts than Vrbo, but its guest-facing prices are simpler and often more appealing.
- It is cheaper or roughly on par with Booking.com in most cases.
- For guests, Airbnb offers the cleanest and most transparent pricing model of the three.
This dynamic creates a natural channel mix shift: Vrbo may attract hosts seeking lower distribution costs, while Airbnb is likely to capture more guest demand because of its transparent, all-in pricing.
Why multi-channel strategy matters
As fees converge and guest behavior shifts, the real advantage comes from being present on multiple OTAs simultaneously. Demand often flows unevenly, spiking on one channel while softening on another. Property managers and hosts who are active across Airbnb, Vrbo, and Booking.com can capture bookings wherever demand surges first.
In practice, this means you’re not just reacting to Airbnb’s pricing policies, you’re positioning yourself to win across the entire distribution landscape, ensuring that your property stays visible, competitive, and profitable regardless of which OTA guests choose.
Operational implications
For PMS-connected property managers, this shift requires careful system updates:
Update markups in your channel manager from 3% → 15.5%. Ensure that this applies only to Airbnb, not your base rates across Booking.com or Vrbo. You also need to review cleaning fees and extras: Airbnb applies the 15.5% cut across the entire subtotal.
Failing to adjust settings correctly could erode margins or distort pricing across channels.
Practical guidance for hosts and managers
- Run the numbers
- Use the formula: Old Price × 1.1479.
- Adjust both nightly rate and cleaning fee.
- Build a simple sheet to model payouts at different levels of adjustment.
- Test your elasticity
- In competitive markets, consider adjusting only 10–12%. Monitor conversion.
- In unique/differentiated markets, go for full adjustment. Protect payout.
- Align across channels
- Ensure PMS markup applies only to Airbnb.
- Avoid accidentally inflating Vrbo or Booking.com rates.
- Monitor performance
- Track ADR (average daily rate), occupancy, and conversion.
- Compare across Airbnb, Vrbo, and Booking.com post-transition.
Conclusion: don’t panic, adapt
Airbnb’s shift to a 15.5% host-only fee may sound dramatic, but the real story is simpler:
- Airbnb is taking more of the pie.
- Your competitiveness doesn’t suffer if you adjust pricing correctly.
- Ranking is based on total guest-facing price, not how fees are split.
For hosts and property managers, the focus should not be on fear but on strategy. Protect your margins, optimize your listings, and embrace transparency. Airbnb’s distribution cost has gone up, but so has the clarity and conversion potential of your listings.
The winners will be those who adapt quickly, recalibrate their pricing, and position their properties as the best value in a transparent marketplace.
Don’t wait until the new fees take effect. Book a call with our revenue management team today and get a tailored strategy to protect your margins, stay competitive, and maximize your bookings across all OTAs.