Managing vacation rentals across multiple online travel agencies (OTAs) like Airbnb, Vrbo, and Booking.com can get confusing when each platform uses a different fee structure. Hosts often juggle split fees, commissions, and traveler service fees—all of which affect not only your payout but also what the guest sees at checkout.
Airbnb is now making a significant change that in some ways will make it simpler for managers using any Property Management Software (PMS). On October 27, 2025, Airbnb will move hosts connected via property management software (PMS) to a simplified, single host-only fee of 15.5%. Although this decision comes with mixed reactions from managers, the change brings Airbnb more in line with other OTAs and makes cross-channel revenue management easier.
Let’s look at what’s changing, how it compares with Vrbo and Booking.com, and how you can prepare.
Airbnb service fees explained
Online travel agencies (OTAs) charge a service fee to cover costs like 24/7 customer support, secure payment processing, and platform development. Airbnb, one of the leading OTAs, is no exception. Currently, with Airbnb, there are two fee structures for most hosts: split fee and single fee.
1. Split Fee
- Host service fee: Most hosts pay a 3% service fee, deducted from their payout. Exceptions: 4% for hosts in Brazil, and some hosts in Italy pay higher. Guests pay the remainder.
- Guest service fee: Guests typically pay 14.1% to 16.5% of the booking subtotal (nightly rate + host fees, excluding taxes and guest fee). This varies by booking length, market, and payment currency.
- Availability: Split fee will be discontinued for PMS-connected hosts starting October 27, 2025. Hosts not using PMS can continue with the split fee until December 1, 2025.
2. Single Fee (Host-only Fee)
New hosts using a PMS are already on the single fee structure wherein the entire fee is deducted from the host payout. However, as of 10/27/25, the following changes will be made:
- Currently 14–16%, moving to 15.5% globally (16% in Brazil).
- Additional 2% applies for hosts using Super Strict cancellation policies.
- Stays over 28 nights may have reduced fees.
- Mandatory for: PMS-connected hosts, hotels, serviced apartments, and other traditional hospitality listings.
- Service fees may include VAT where required.
- Airbnb reserves the right to adjust fees under their Terms of Service.
Timeline for Airbnb’s simplified pricing rollout
- August 25, 2025: New PMS-connected hosts required to use the single host-only fee.
- October 27, 2025: Most PMS-connected hosts moved automatically to 15.5% single fee.
- December 1, 2025: Non-PMS hosts already on a single-fee model will be moved from a 15% single fee to 15.5% single fee.
- Exemptions: Certain hotel listings under contract with Airbnb Travel LLC.
How other OTAs handle service fees
The following chart shows Airbnb’s new changes in comparison to both the previous model, and other leading OTAs.
What this means for hosts
While the thought of increasing base rates isn’t what most hosts want to do, when it comes down to it, this pivot makes pricing easier—or, more simplified. Here are some of the benefits:
- Transparency: Guests now see the total price upfront, reducing booking friction. A single fee eliminates the “surprise factor,” making pricing feel more honest.
- Consistency: Airbnb’s host-only fee brings it in line with Booking.com’s commission model, simplifying cross-channel management.
- Conversion: A guest scanning booking options sees a straightforward total, making them more likely to click and convert. On mobile (where most bookings happen now), a single price is easier to digest in limited screen space. This clarity prevents drop-off and speeds up checkout.
- Revenue planning: Hosts must adjust base rates (via PMS multipliers or manual changes) to preserve net earnings.
- Market alignment: Since Vrbo shows full traveler prices, Airbnb’s new model creates a more level comparison for guests shopping across OTAs.
Potential concerns & easy solutions
Despite the benefits of industry alignment and guest transparency, some hosts may be concerned about the fallout of adjusting their nightly rates. Here are a few things to keep in mind:
PMS users vs. non-PMS users
Although the Airbnb single fee model will hit PMS managers who aren’t already on the model sooner, the change should also roll out by the end of 2025 to all Airbnb hosts, regardless of whether or not they use a PMS. This will level the playing field.
Offset nightly costs for host-only fees
Just because Airbnb’s fee model is changing, doesn’t mean you need to lose revenue! Let’s take a look at how you can adjust your pricing to offset this change.
Split fee model: If you set your price at $100, you earn about $97 while guests pay around $115.50.
Single, host-only fee model: If you set your price at $115.50, you earn about $97 and your guests also pay $115.50
The key difference? The guest no longer sees a separate Airbnb fee—just one all-in price. For more on how to adjust rates and align channels to offset fees, read about the channel rate multiplier or watch this rate multiplier tutorial.
Consider direct bookings for diversification
If you don’t already lock in bookings with a direct booking site, we recommend considering it in addition to using your widely available OTAs like Airbnb, Vrbo, Booking.com, etc. With direct booking sites, you control your fees and you’re not beholden to pay any platform fees. Read more about the benefits of direct bookings here.
Of course, with a PMS like Hostfully that automates channel management, it’s easy to keep your listings across OTAs and use a direct booking site for optimal reach and benefits—without adding extra work.
Communicating with owners
Once you determine what it will take to retain your revenue, it’s important to communicate with your owners. Below we’ve included a sample email.
Subject: We’re protecting your revenue during Airbnb’s pricing update
Dear [Owner’s Name],
We want to let you know about an upcoming change Airbnb is making that affects how service fees are handled. Starting October 27, 2025, Airbnb will move to a single host-only service fee of 15.5% for properties managed through professional software like ours.
What this means for your property
- Guests will now see one clear, upfront price when booking. This eliminates surprise add-on fees and helps build trust.
- Airbnb’s new approach aligns with other booking channels, making it easier for us to keep your property rates consistent across platforms.
- To make sure your earnings remain steady, we’ll be adjusting nightly rates accordingly so your net income does not decrease.
Why this is good news
- Guests are more likely to book when they see a transparent, all-in price. This improves booking conversion.
- Rate management across Airbnb, Vrbo, and Booking.com will be simpler, reducing discrepancies between channels.
- You can rest assured that even though the fee structure is shifting, your payout will stay protected.
Our commitment to you
We’ve already updated our systems to reflect this change and are proactively adjusting your listings so there’s no disruption. As always, our priority is to keep your property competitive, profitable, and attractive to guests.
If you have any questions about this change, don’t hesitate to reach out—we’re happy to walk you through how it works.
Thank you for trusting us with your property. We’re confident this change will make booking easier and more appealing for guests, leading to more successful stays for you while keeping your revenue secure.
Warm regards,
[Your Name]
[Your Company]
How to prepare for a single fee model
So how can a host switch to or prepare for a single fee model? We suggest the following steps to ensure you are prepared.
- Audit your current rates and payouts: Compare your guest-facing prices and net payouts across OTAs.
- Update your pricing in your PMS (Hostfully): Review and update your Airbnb pricing in Hostfully, either by bulk edit or manual updates, to ensure your earnings remain steady. Adjust your Rate Multiplier to account for the 15.5% host-only fee so you preserve revenue.
- Bulk edit listings for efficiency: Keep parity across multiple properties and channels.
- Test guest-facing prices: Search your own listings as a guest to confirm the price displayed aligns with your strategy.
- Highlight value: With higher all-in prices, emphasize included amenities, flexible policies, or unique features.
Conclusion
Airbnb’s simplified pricing is a major shift for some managers who have been grandfathered into the split-fee option. However, the change aligns the platform more closely with competitors. This pivot is likely in part due to an industry-wide demand from guests for clearer pricing upfront. Ultimately, this will make it easier for guests to find properties within their total budgets, and likely reduce guest questions that complicated fee structures and hidden costs tend to generate.
For hosts, the key takeaway is: adjust your pricing strategy to preserve margins while leveraging the transparency benefit to improve booking conversion. With tools like Hostfully, you can automate these updates and ensure consistency across channels.
