Property Manager · USA · Member since 2018 · 87 posts · 50 votes
There’s been a lot of debate on what markup you need to keep your payouts whole.
If you want to offset the entire 15.5% fee, the correct markup is 18.34%.
That’s because you’re covering the full fee from scratch.
But here’s the key: most hosts (myself included) were already absorbing the old 3% fee as an acquisition cost.
In that case, you don’t need to markup that part again — you only need to offset the extra 12.5%.
Example:
Old rate = $100
Airbnb takes 12.5% → you’d only get $87.50
To get back to $100: $100 ÷ 0.875 = $114.29
That’s a 14.29% markup (multiply rates by 1.1429).
So which is correct?
18.34% if you’re offsetting the full 15.5%.
14.29% if you were already absorbing the 3%.
Many PMS systems let you apply this markup automatically. Update your markup percentage once, and it flows through to all your listings.
How are you handling the new fee—passing it all on to guests, absorbing part of it, or somewhere in between?
A couple of thoughts, in the end, the guest is "supposed to see" the same rates, it just won't be broken down by host fees vs. airbnb fees vs. taxes. In practice, my guests will now be paying MUCH more and will be advantaged to shop elsewhere, namely VRBO. When I increase my rate based on the 15.5% to cover what was once the guest fee (I also did the math and increased my rate by 18.34%), I am doing so on all of my fees (rate, cleaning, etc.), before I used to absorb the 3% because it wasn't that much on things like cleaning. That is no longer the case so now my guests are paying more for cleaning fees as well as the nightly rate. And the kicker, the taxes (11% for my area) are based on my fees so now the guest pays an even higher amount of taxes also. Airbnb is hurting themselves. My rates on Airbnb are now higher than they are on VRBO, BDC etc. It will be interesting to see how consumers react. I have done a day for day comparison across all my channels including direct and Airbnb is now the highest rate because of this.
IIRC before the policy change, the price I put into the calendar for each day is what I get paid out because taxes and platform fees are added on top of that. Is this no longer the case?
A couple of thoughts, in the end, the guest is "supposed to see" the same rates, it just won't be broken down by host fees vs. airbnb fees vs. taxes. In practice, my guests will now be paying MUCH more and will be advantaged to shop elsewhere, namely VRBO. When I increase my rate based on the 15.5% to cover what was once the guest fee (I also did the math and increased my rate by 18.34%), I am doing so on all of my fees (rate, cleaning, etc.), before I used to absorb the 3% because it wasn't that much on things like cleaning. That is no longer the case so now my guests are paying more for cleaning fees as well as the nightly rate. And the kicker, the taxes (11% for my area) are based on my fees so now the guest pays an even higher amount of taxes also. Airbnb is hurting themselves. My rates on Airbnb are now higher than they are on VRBO, BDC etc. It will be interesting to see how consumers react. I have done a day for day comparison across all my channels including direct and Airbnb is now the highest rate because of this.
A couple of thoughts, in the end, the guest is "supposed to see" the same rates, it just won't be broken down by host fees vs. airbnb fees vs. taxes. In practice, my guests will now be paying MUCH more and will be advantaged to shop elsewhere, namely VRBO. When I increase my rate based on the 15.5% to cover what was once the guest fee (I also did the math and increased my rate by 18.34%), I am doing so on all of my fees (rate, cleaning, etc.), before I used to absorb the 3% because it wasn't that much on things like cleaning. That is no longer the case so now my guests are paying more for cleaning fees as well as the nightly rate. And the kicker, the taxes (11% for my area) are based on my fees so now the guest pays an even higher amount of taxes also. Airbnb is hurting themselves. My rates on Airbnb are now higher than they are on VRBO, BDC etc. It will be interesting to see how consumers react. I have done a day for day comparison across all my channels including direct and Airbnb is now the highest rate because of this.
Yes @Patricia Andriolo-Bull, this will also cause hosts to be more aggressive in their direct marketing.
We don't use Airbnb because of this monkey business. It seems like they have a newer and better "jerk the host around" policy every couple of days.
You get what you tolerate.
VRBO is no better, and will almost certainly copy this in the coming months.
VRBO and Airbnb take turns coming up with jerk the host around policies, and then the other one copies it.
Remember, VRBO are the ones that invented charging fines to hosts beyond even the max refund amount, which is pretty much the most brutality punitive policy in all of business and something no other business would accept.
Imagine if waiters had to pay a $2000 fine for spilling a drink on a diner. That's VRBO if they were in the restaurant biz.
We don't use Airbnb because of this monkey business. It seems like they have a newer and better "jerk the host around" policy every couple of days.
You get what you tolerate.
VRBO is no better, and will almost certainly copy this in the coming months.
VRBO and Airbnb take turns coming up with jerk the host around policies, and then the other one copies it.
Remember, VRBO are the ones that invented charging fines to hosts beyond even the max refund amount, which is pretty much the most brutality punitive policy in all of business and something no other business would accept.
Imagine if waiters had to pay a $2000 fine for spilling a drink on a diner. That's VRBO if they were in the restaurant biz.
I have heard of this fine being applied.
I'm sure it only happens to the worst of the worst if at all.
Don't forget to apply the mark up to your fees as well.
If you were charging $250 for cleaning before, Airbnb would charge the guest their 14% on top of that and still pay you roughly $250 (minus 3%).
Now they will charge the guest $250 and only pay out $211 to you. So you need to mark up the cleaning fee as well. Along with pet fee, damage insurance, etc.
Personally, I don’t mark up at all. Instead, I focus on keeping my occupancy strong. For me, it’s easier to make up the difference by having a fuller calendar rather than playing around with exact fee offsets.
I’d rather price competitively so I stay attractive in search results and let volume carry the revenue. With solid occupancy, reviews, and repeat bookings, the extra few percent in fees gets absorbed pretty naturally.
That said, I can see the math making sense for people who want to stay 100% whole on every booking. But my approach has been: don’t overcomplicate it, keep the listing competitive, and the occupancy takes care of the margin.
Personally, I don’t mark up at all. Instead, I focus on keeping my occupancy strong. For me, it’s easier to make up the difference by having a fuller calendar rather than playing around with exact fee offsets.
I’d rather price competitively so I stay attractive in search results and let volume carry the revenue. With solid occupancy, reviews, and repeat bookings, the extra few percent in fees gets absorbed pretty naturally.
That said, I can see the math making sense for people who want to stay 100% whole on every booking. But my approach has been: don’t overcomplicate it, keep the listing competitive, and the occupancy takes care of the margin.
Never for me. I prefer higher rates, better quality guests and lower occupancy with less wear and tear. It has worked great for me. Whenever I have competitive rates I get more demanding guests.
Can I ask why are people here are switching to this single fee model before the Oct. 27th date when Airbnb forces you to? If your guests are going to pay more this way, why go to it now when your competition hasn't switched yet and will be charging less than you?
Just looked at a new booking payout for future stay. AirBnb used to list the cost of each night individually, now it combines them into one total. Even if you go to your calendar, it no longer shows the price that you had listed for that night prior to booking. I had to go into price labs to see what I charged for those nights.
I'm all for simplicity but this goes far beyond that- they clearly going out of their way to obscure how much they are milking hosts.