Airbnb Just Changed Host Fees - Here’s What You Can Do About It

Airbnb Just Changed Host Fees - Here’s What You Can Do About It

Airbnb's New Fee Structure Has Hosts Panicking. Here’s Why It’s Actually an Opportunity.

The Airbnb hosting community is in a freefall. Airbnb just announced a major change to how its service fees work, and hosts are absolutely freaking out about it. We’re seeing claims like, "I'm going to make less money," or "I'm forced to raise rates in a bad economy".

While the panic is real, this change isn't the catastrophe many believe it is. In fact, we believe this turbulence creates a major opportunity for prepared hosts. In this post, we’ll pull back the curtain on this update and show you exactly how to navigate it. We’ll break down:

• Why the hosting community is panicking (and why you shouldn’t be).

• How the fee structure is actually changing.

• The numbers behind the new model and how to protect your profits.

• A step-by-step guide to adjusting your pricing.

The Host’s Mindset: Finding Opportunity in the Chaos

Our ears perk up when we see fear in the market, because it’s a sign that hosts who are prepared can get ahead. The fear around this update really comes from not understanding the mechanics of what’s changing. The real issue isn't the fee change itself; it's that many hosts are not adjusting their pricing settings correctly in their property management software (PMS). The only real risk is simply doing nothing. If you don’t update your pricing, you could earn 10-12% less per booking. But if you make a simple adjustment, you'll be right on track and can even become more competitive.

How Data and Details Reveal the Real Story

This isn’t just a gut feeling. Let’s break down the mechanics of the change. Airbnb is moving from a "split-fee" model to a "host-only" fee model.

• The Old Way (Split-Fee Model): Hosts paid a service fee of around 3%, which mostly covered credit card processing. Guests paid a separate service fee of roughly 12% to 14%.

• The New Way (Host-Only Fee): The entire service fee is being moved to the host. This means hosts will now see a fee of up to 15.5% taken from their payouts.

This change is happening for a few key reasons, primarily to create more price transparency for guests. Airbnb has been losing market share to competitors like Booking.com, which already uses a similar host-only fee structure. The data shows that simplified, upfront pricing leads to more bookings because guests don't get hit with surprise fees at the end.

Key Dates to Remember:

• October 27, 2025: The change rolls out for hosts using property management software.

• December 1, 2025: The change rolls out for everyone else.

Our Vision: A Seamless Transition That Protects Your Profits

Our vision is simple: adjust our pricing so that neither our revenue nor the guest's total price changes. An amazing strategy means nothing if the numbers don't work. Here’s a breakdown of how the pricing works out:

Let's use an example of a $100 per night listing:

• Under the OLD model: You list your price at $100. The guest sees a price of around $115 after their service fee is added. You, the host, would receive $97 after your 3% fee is deducted.

• Under the NEW model: The goal is for the guest to still see a final price of $115 and for you to still receive about $97. The only thing that needs to change is how you set up your base price to account for the new 15.5% fee.

The bottom line is that the guest's experience and the total amount they pay will remain exactly the same.

The Step-by-Step Fix: Adjusting Your Pricing

For hosts using a Property Management Software (PMS) like Hospitable, the fix is incredibly simple and takes less than a minute.

1. On October 27th, log in to your PMS and navigate to your pricing or settings section. In Hospitable, this is under Settings > Properties.

2. Find the "channel manager markup" for Airbnb. You likely have this set to 3% currently to account for the old fee.

3. Change the markup from 3% to 15.5% and hit save.

Once you do that, the software will automatically adjust and push the new prices to all of your Airbnb listings. Your new, higher base price will account for the 15.5% service fee, ensuring your payout remains the same.

For non-PMS users, you will have to do this manually. You have until December 1st to go into your listings and adjust your base price to account for the new fee structure.

Got Questions?

Reach out on STR Wealth Academy channels or drop a comment below. We’re here to help you navigate the chaos and come out stronger.

Happy Hosting! 🎉