Airbnb's New Fee Structure: How The Airbnb Fee Update Affects Your Payouts

Airbnb recently announced a big change to its fee model for hosts using property management software (PMS) or channel managers. Beginning October 27, 2025, Airbnb will transition these hosts to a single 15.5% host-only service fee, replacing the familiar split-fee arrangement.

While this shift simplifies guest pricing, it directly impacts the hosts’ bottom line. For many hosts, this might mean that it’s time to rethink pricing strategies and understand how payouts will change moving forward. Here’s everything you need to know.

Airbnb’s New Fee Structure

Airbnb allows hosts to choose between using a split-fee model, where both hosts and guests share the cost of service fees, or a Single fee structure where the host shoulders the fees.

The Split-Fee Model

Under the split-fee system, both hosts and guests share the cost of Airbnb’s service fees. Typically, hosts pay around 3% of the booking subtotal, while guests pay anywhere from 14.1% to 16.5%, depending on the reservation. The guest service fees can be found in the Price Breakdown section of each booking.

The Single Fee Structure

The single-fee model shifts the entire cost onto the host, eliminating the guest-facing service fee. Instead, hosts pay around 14-16% in fees, deducted directly from the host payout. Guests see exactly what the host lists, with no extra Airbnb service charges added.

This structure is mandatory for traditional hospitality listings like hotels, serviced apartments, and others.

What’s Changing?

Starting October 27, 2025, Airbnb will standardize the single fee structure to a fixed 15.5% fee. They will also begin transitioning hosts using property management software (PMS) to the single 15.5% host-only fee model. This means PMS-connected hosts will no longer use the split-fee system. Instead, they’ll pay the higher host-only fee while guests see the exact listed price.

Other hosts not using PMS can continue under the split-fee system. However, starting December 1, 2025, most hosts that are not using property management software will also be required to transition to the host-only fee model.

Additionally, starting on August 25, 2025, all new host signups using a property management software can only select the single fee structure.

After October 27, PMS-connected hosts will transition to the single host-only fee model. Under this system:

• Hosts pay a 15.5% fee, deducted directly from the amount they list.
• Guests no longer pay a separate Airbnb service fee.
• Host payouts shrink unless nightly rates are adjusted, since the fee burden shifts entirely to the host.

This update is designed to make Airbnb’s pricing simpler and more transparent for guests. Instead of seeing a lower nightly rate and a surprise service fee at checkout, guests will see one upfront price. While this could improve conversion rates and booking trust, it means hosts must be more proactive about repricing their listings to avoid taking home less per booking.

Importantly, this change only affects PMS-connected hosts at first, but it signals Airbnb’s broader shift toward a host-only fee structure across the platform moving forward. Independent hosts (who manage listings directly on Airbnb without PMS) are expected to move to the same system later in the year.

Payout Changes: Airbnb Old vs. New Fee Comparison

While it’s quite evident that the change is definitely significant to most hosts, here are a few examples of how it affects real payouts at different price points.

Example 1: $150/night listing

Old Split Fee

1. Host sets price: $150
2. Host fee (3%): $4.5
3. Guest fee (~14%): $21
4. Guest pays: $171
5. Host receives: $145.5

New 15.5% Host-Only Fee

1. Host sets price: $150
2. Host fee (15.5%): $23.25
3. Guest pays: $150
4. Host receives: $126.75

Potential Nightly Difference After The Change: $18.75

Example 2: $350/night listing

Old Split Fee

1. Host sets price: $350
2. Host fee (3%): $10.5
3. Guest fee (~14%): $49
4. Guest pays: $399
5. Host receives: $339.5

New 15.5% Host-Only Fee

1. Host sets price: $350
2. Host fee (15.5%): $54.25
3. Guest pays: $350
4. Host receives: $295.75

Potential Nightly Difference After The Change: $43.75

One thing is clear: to keep the same payout you had before, you’ll need to increase your nightly rates. So, instead of setting the nightly rate to be at $150 in example 1, you’ll need to set it to around $172 to receive a similar payout.

Here’s the formula we used to determine the new nightly rates:

New Price = Old Payout ÷ (1 - 0.155)

New Price = $145.5 ÷ (0.845)

New Price = $172.19

How the Airbnb 15.5% Host-Only Fee Update Affects Different Types of Hosts

Small Scale Individual Hosts (Managing Directly)

If you’re only running a handful of properties, you may feel this shift more directly once your transition period comes. Since your margins are tighter, a sudden drop in payout (if you don’t adjust pricing) can hurt. However, being able to advertise an all-inclusive guest price can potentially help attract more bookings.

In the meantime, you can continue to use the Split-Fee model, but you need to plan ahead for the upcoming change.

1. Not impacted immediately.
2. Airbnb set the rollout date for hosts who do not use PMS to be on December 1, 2025.
3. Should monitor closely and prepare to adjust pricing once the change expands.

Hosts Using Property Management Software (PMS)

For managers with dozens or hundreds of units, this change will directly affect your payouts. It’s easier to manage if you use dynamic pricing tools that can quickly adjust rates to maintain margins. Still, the change might require fine-tuning of your pricing strategies to stay competitive.

1. Transition starts on October 27, 2025.
2. PMS platforms must update their integrations to reflect the net payout after 15.5%.
3. Immediate need to recalculate nightly rates to maintain similar payouts as before.

What Hosts Should Do Next

Airbnb’s new 15.5% host-only fee means hosts will need to be proactive in protecting their earnings while staying competitive. Here are a couple of things you could do to help during the transition.

Recalculate Your Pricing Strategy

Run the numbers and work out what nightly rate you need to set in order to maintain your previous payouts. You can use the formula we previously mentioned, New Price = Old Payout ÷ (1 - 0.155), to maintain consistent payouts as before.

Look into dynamic pricing software like PriceLabs, Wheelhouse, and Beyond. They can automatically adjust your rates to offset the fee change while keeping your prices competitive in real time, especially since most hosts will likely be adjusting their rates once the change hits.

Benchmark Against Competitors

Check comparable listings and look at what similar properties in your area are charging after the update. You might want to stay within range to stay competitive.

Determine your preferred balance in payouts and occupancy. Sometimes, earning slightly less per night but maintaining higher occupancy results in stronger monthly profits, especially if everyone else around you is pricing higher.

Do some test pricing. Try small, incremental adjustments and monitor booking behavior before committing to a full increase.

Update Your Marketing & Messaging

It might be a smart move to highlight “no extra Airbnb fees.” Since guests will no longer see an added service fee at checkout, you can make this a selling point in your listing description.

If repeat guests notice higher nightly rates, explain that the total price is the same, just structured differently with the removal of service fees.

Promote direct booking options and enhance your site or socials. If you operate an independent site or accept direct reservations on your social media accounts, now is a great time to educate repeat guests about booking direct to save both sides money.

Monitor Booking Trends Closely

Since prices are likely going to increase across the board, it’s essential to track occupancy changes. If bookings dip, consider whether your adjusted pricing is too aggressive for your market.

Monitor conversion rates and pay attention to whether more guests are viewing your listing but not booking. This could indicate price resistance or budget constraints, which can vary depending on the market you are in and your primary target audience.

Wrapping Things Up

Airbnb’s 15.5% host-only fee marks a big shift for STR operators. Hosts using property management software will feel the hit first, starting on October 27, 2025. However, all hosts will follow on December 1, 2025.

While it increases host costs, it also improves transparency for guests. The key is to recalculate your pricing now, so you protect your margins before the October 27 and December 1 rollouts. Staying proactive will ensure you remain competitive while keeping your payouts intact.