What Hosts Should Know About Airbnb’s Upcoming Service Fee Update

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What Hosts Should Know About Airbnb’s Upcoming Service Fee Update

Tara Omotere
San Francisco · Member since 2025 · 21 posts · 13 votes

Starting October 27, Airbnb will raise the service fee they charge hosts from 15% to 15.5%. Airbnb is now making things more uniform, in the past, some hosts paid different types of fees (for example, a separate guest fee or a single host fee). If you want to keep earning the same amount as before, you can slightly raise your nightly rate to cover the 0.5% increase.

Example:
If you charge $100 per night, Airbnb used to take $15 (15%).
Now they’ll take $15.50 (15.5%).
You’d earn 50 cents less per booking unless you raise your price a bit.

So you could adjust your rate to $100.50 or $101 to keep your income the same.

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
11mo

I don't think 50 cents or a dollar, as in this example, is going to make much of a difference either way.

The OTAs will keep looking for ways to increase their revenues at our expense.

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    11mo

    I don't think 50 cents or a dollar, as in this example, is going to make much of a difference either way.

    The OTAs will keep looking for ways to increase their revenues at our expense.

    1Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    10mo

    At scale it makes a difference, this year on Abnb we are a little over a million in revenue so .5% is $5,000

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
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    • Laura Winters
      Member since 2021 · 124 posts · 87 votes
      10mo
      Quote from @Andrew Steffens:

      At scale it makes a difference, this year on Abnb we are a little over a million in revenue so .5% is $5,000


       I am actually shocked your revenue is only a million on Airbnb, considering you guys have 100+ units? Is Airbnb really that small of portion for your business? 

      0Reply
  • Account Closed
    Investor · FL · Member since 2016 · 332 posts · 388 votes
    10mo
    Quote from @Tara Omotere:

    Starting October 27, Airbnb will raise the service fee they charge hosts from 15% to 15.5%. Airbnb is now making things more uniform, in the past, some hosts paid different types of fees (for example, a separate guest fee or a single host fee). If you want to keep earning the same amount as before, you can slightly raise your nightly rate to cover the 0.5% increase.

    Example:
    If you charge $100 per night, Airbnb used to take $15 (15%).
    Now they’ll take $15.50 (15.5%).
    You’d earn 50 cents less per booking unless you raise your price a bit.

    So you could adjust your rate to $100.50 or $101 to keep your income the same.

    The issue is most of us are setup on the Airbnb setting where the guest pays 10% to 15% and we as hosts pay 3%.  So shifting the 12.5% to hosts you have to raise your rate more than 12.5%. 
    If you were paying 3% then 97% of $100=$97
    You now have to increase your rate by 15% to get the same payout with 15.5% charge to hosts: $115 x 84.5%=$97.18
    If you want your true $100 then increase rates by 18.35%:  $118.35 × .845 = $100.01

    Anyone can correct my math if is wrong as I am still on my first cup of coffee this morning.
    1Reply
  • Tara Omotere
    OP
    San Francisco · Member since 2025 · 21 posts · 13 votes
    10mo

    Haha, coffee or not, your math checks out. Thank you Chris. The key takeaway is that hosts will likely need to increase their nightly rates to maintain the same payout once the new host-side service fee takes effect.

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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    10mo

    No we are at 55-60 or so units.  Been hovering 55-70 or so this year, in 2023 we were in the 90s.  I do not have the number in front of me for 2025, but Airbnb is about 60% of our bookings but less than 50% of our revenue.  Airbnb does fill our smaller units and more urban units better but some of the other platforms are better on our beach and luxury units.

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    0Reply
  • Justin Miller
    Interior Decorator · Nationwide · Member since 2017 · 44 posts · 35 votes
    10mo
    Quote from @Tara Omotere:

    Starting October 27, Airbnb will raise the service fee they charge hosts from 15% to 15.5%. Airbnb is now making things more uniform, in the past, some hosts paid different types of fees (for example, a separate guest fee or a single host fee). If you want to keep earning the same amount as before, you can slightly raise your nightly rate to cover the 0.5% increase.

    Example:
    If you charge $100 per night, Airbnb used to take $15 (15%).
    Now they’ll take $15.50 (15.5%).
    You’d earn 50 cents less per booking unless you raise your price a bit.

    So you could adjust your rate to $100.50 or $101 to keep your income the same.

    The new 15.5% Host-Only Fee, is a major win for guest experience and overall conversion imo. By eliminating the separate, "service fee" line item at guest checkout, the "all-in" pricing model aligns better with modern travelers and hotels.

    I personally believe this helps everyone in our industry attract more guest demand.

    Guests see the final price up front, reducing the "sticker shock" that often leads to cart abandonment. This newfound price transparency can lead to higher booking confidence and a better overall conversion rate for hosts who proactively adjust their rates to cover the new fee.

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    • Daniel Bourdeau
      Real Estate Agent · Chicago, IL · Member since 2020 · 48 posts · 43 votes
      10mo
      Quote from @Justin Miller:


      I personally believe this helps everyone in our industry attract more guest demand.

      Guests see the final price up front, reducing the "sticker shock" that often leads to cart abandonment. This newfound price transparency can lead to higher booking confidence and a better overall conversion rate for hosts who proactively adjust their rates to cover the new fee.

       My take is kinda the opposite. Studies have shown that companies can make more when they get you to checkout and then upcharge. This is why you see airlines like Spirit and frontier operating like they do.

      If I just increase my price 15%, the guest now sees it all up front and not added in check out. This is a win for guest transparency, but likely results in the business being able to charge less. There's also the fact that if I raise my price 15% to compensate for the change and my competition does not (didnt hear about it, not sophisticated pricing operator), then I'm at a disadvantage as I'm now higher priced than them

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  • Stephanie Acebes
    Member since 2025 · 8 posts · 3 votes
    10mo

    Interesting timing on this fee change! For hosts who are trying to make every dollar count, these little adjustments add up—especially if you're tracking not just your rates but also your hours spent managing STRs (short-term rentals). I've noticed more investors getting extra strategic these days, not just with pricing but also with documenting their involvement for taxes. Anyone else here started tracking their STR management hours more closely this year, or are there tips you use to balance profitability with tax planning after changes like this?

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