Airbnb 15.5% Host Fee...What did you do and how's it going?

Airbnb 15.5% Host Fee...What did you do and how's it going?

Property Manager · Chattanooga, TN · Member since 2018 · 178 posts · 134 votes

We use Hospitable, so on Oct 27th, we accepted the Airbnb increase Hospitable offered, raising our nightly rates and fees by 18.34% to compensate for the entire host fee being paid by the host.  Since then, we've seen a noticeable drop in Airbnb bookings.  I'm curious what others did, what you're planning to do, and what you're experiencing.

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Garrett BrownPro Member
Rental Property Investor · Houston, TX · Member since 2024 · 516 posts · 553 votes
10mo

The biggest thing to note is that only about 30% of PMS-connected hosts (according to AirDNA) raised their prices to address the change. 

That means about 70% of hosts did not raise prices, which probably skewed the data a lot. I raised prices by 10% across the board to see how it went. It will start to work itself as hosts realize how much things change with the new fee for hosts, but isn't an instant change for all.

See this reply in the discussion

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  • Investor · Warner Robins, GA · Member since 2015 · 1k+ posts · 490 votes
    11mo
    We've done the same, increased by at least 18.34%. There may continue to be a drop in bookings until other less informed hosts catch wind and adjust accordingly once they see those decimated payouts. 
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    11mo

    I am lucky enough to get most bookings from Vrbo.

    I'm not adjusting my Airbnb rates. Maybe I will actually get a few more Airbnb bookings?

  • Interior Decorator · Nationwide · Member since 2017 · 44 posts · 35 votes
    11mo

    The temporary dip is because the other hosts haven't noticed yet, but once they do, you will start receiving more bookings steadily over time.

  • Investor · VA AZ, SC · Member since 2017 · 173 posts · 172 votes
    11mo

    I had already factored in the 3% fee and raised prices on Airbnb by 15%. 

    There has been some slow down, and I think it can be attributed to two factors in the US:

    1) Supply side: Airbnb hosts who didn’t move prices

    2) Demand side: the government shutdown put a big pause on a lot of people’s travel plans and injected uncertainty into the market. I for one didn’t want to fly when air traffic controllers were not getting paid and half the flights out of O’Hare were more than 3 hours delayed


    Let’s check back in a month to see what is happening for spring break…

  • Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
    11mo

    I don't use a PMS so my fee structure remains the same, the old split fee.  I have a beach house so winters are pretty dead anyway, and I've had no new bookings on Airbnb since the change. I did have one new booking on Vrbo for Thanksgiving.

    • Property Manager · Chattanooga, TN · Member since 2018 · 178 posts · 134 votes
      11mo
      Quote from @Lauren Kormylo:

      I don't use a PMS so my fee structure remains the same, the old split fee.  I have a beach house so winters are pretty dead anyway, and I've had no new bookings on Airbnb since the change. I did have one new booking on Vrbo for Thanksgiving.

      My understanding is that non-PMS users are joining the fun, new 15.5% to the host on Dec 1st.  Have you had any communication from Airbnb to that effect?  If so, what do you plan to do with your rates in response?

    • Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
      11mo
      Quote from @Tyler Divin:
      Quote from @Lauren Kormylo:

      I don't use a PMS so my fee structure remains the same, the old split fee.  I have a beach house so winters are pretty dead anyway, and I've had no new bookings on Airbnb since the change. I did have one new booking on Vrbo for Thanksgiving.

      My understanding is that non-PMS users are joining the fun, new 15.5% to the host on Dec 1st.  Have you had any communication from Airbnb to that effect?  If so, what do you plan to do with your rates in response?


       I don't think I'll be moved to the single fee plan on Dec. 1st.  Airbnb has not contacted me about any of this.  Here's what the Airbnb site says:

      Airbnb service fees for home hosts

      1. Split-fee

      This fee structure is the most common and is split between the host and the guest.

      Host service fee

      Most hosts pay a 3% service fee, but some pay more, including some hosts with listings in Italy and Brazil. Hosts with listings in Brazil pay a 4% fee. The fee is automatically deducted from the total price (service fees are a percentage of the nightly price and any fees charged by the host, but exclude the guest service fee and taxes) to calculate the host payout.

      The split-fee pricing structure will no longer be available to hosts who use property management software to manage their listing, effective as follows: 

      August 25, 2025: New hosts who use property management software that sign up with Airbnb can only select the single fee structure.

      October 27, 2025: Most hosts who use property management software will automatically transition to the single fee structure.

      Hosts who don’t use property management software are not affected, and can continue to use the split-fee pricing structure.      [underline is mine]

        2. Single fee

        With this structure, the entire fee is deducted from the host payout. It’s typically 14–16%, though hosts with Super Strict cancellation policies may pay an additional 2%, and fees for stays of 28 nights or more may be less.

        Most hosts currently on the single-fee structure will soon start paying a new single rate of 15.5%, while hosts with listings in Brazil will continue to pay a 16% fee. These changes will take effect as follows:

        • October 27, 2025: Most hosts currently on the single-fee structure who are connected to property management software.
        • December 1, 2025: Most hosts currently on the single-fee structure who are not connected to property management software.

        This fee structure is mandatory for traditional hospitality listings–such as hotels, serviced apartments, etc., as well as hosts who use property management software.

        So from all of that above, it looks like since I'm on the split fee model now, I can continue on as I've been with no change. Section 1 does not have the Dec. 1st deadline in it.  

        As per Section 2, if I was on the single fee model before this, then I would be moved to the 15.5% rate on Dec. 1.  But I'm not.  

        So as I read it, there will be no change for me.  Of course, I expect in January, they will change all of us to this fee structure.  

      • Property Manager · Chattanooga, TN · Member since 2018 · 178 posts · 134 votes
        11mo
        Quote from @Lauren Kormylo:
        Quote from @Tyler Divin:
        Quote from @Lauren Kormylo:

        I don't use a PMS so my fee structure remains the same, the old split fee.  I have a beach house so winters are pretty dead anyway, and I've had no new bookings on Airbnb since the change. I did have one new booking on Vrbo for Thanksgiving.

        My understanding is that non-PMS users are joining the fun, new 15.5% to the host on Dec 1st.  Have you had any communication from Airbnb to that effect?  If so, what do you plan to do with your rates in response?


         I don't think I'll be moved to the single fee plan on Dec. 1st.  Airbnb has not contacted me about any of this.  Here's what the Airbnb site says:

        Airbnb service fees for home hosts

        1. Split-fee

        This fee structure is the most common and is split between the host and the guest.

        Host service fee

        Most hosts pay a 3% service fee, but some pay more, including some hosts with listings in Italy and Brazil. Hosts with listings in Brazil pay a 4% fee. The fee is automatically deducted from the total price (service fees are a percentage of the nightly price and any fees charged by the host, but exclude the guest service fee and taxes) to calculate the host payout.

        The split-fee pricing structure will no longer be available to hosts who use property management software to manage their listing, effective as follows: 

        August 25, 2025: New hosts who use property management software that sign up with Airbnb can only select the single fee structure.

        October 27, 2025: Most hosts who use property management software will automatically transition to the single fee structure.

        Hosts who don’t use property management software are not affected, and can continue to use the split-fee pricing structure.      [underline is mine]

          2. Single fee

          With this structure, the entire fee is deducted from the host payout. It’s typically 14–16%, though hosts with Super Strict cancellation policies may pay an additional 2%, and fees for stays of 28 nights or more may be less.

          Most hosts currently on the single-fee structure will soon start paying a new single rate of 15.5%, while hosts with listings in Brazil will continue to pay a 16% fee. These changes will take effect as follows:

          • October 27, 2025: Most hosts currently on the single-fee structure who are connected to property management software.
          • December 1, 2025: Most hosts currently on the single-fee structure who are not connected to property management software.

          This fee structure is mandatory for traditional hospitality listings–such as hotels, serviced apartments, etc., as well as hosts who use property management software.

          So from all of that above, it looks like since I'm on the split fee model now, I can continue on as I've been with no change. Section 1 does not have the Dec. 1st deadline in it.  

          As per Section 2, if I was on the single fee model before this, then I would be moved to the 15.5% rate on Dec. 1.  But I'm not.  

          So as I read it, there will be no change for me.  Of course, I expect in January, they will change all of us to this fee structure.  


          Interesting.  I was under the impression that all non-PMS users would be migrated on Dec 1.  Assuming they migrate you in January, how do you plan to react?

        • Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
          11mo
          Quote from @Tyler Divin:
          Quote from @Lauren Kormylo:
          Quote from @Tyler Divin:
          Quote from @Lauren Kormylo:

          I don't use a PMS so my fee structure remains the same, the old split fee.  I have a beach house so winters are pretty dead anyway, and I've had no new bookings on Airbnb since the change. I did have one new booking on Vrbo for Thanksgiving.

          My understanding is that non-PMS users are joining the fun, new 15.5% to the host on Dec 1st.  Have you had any communication from Airbnb to that effect?  If so, what do you plan to do with your rates in response?


           I don't think I'll be moved to the single fee plan on Dec. 1st.  Airbnb has not contacted me about any of this.  Here's what the Airbnb site says:

          Airbnb service fees for home hosts

          1. Split-fee

          This fee structure is the most common and is split between the host and the guest.

          Host service fee

          Most hosts pay a 3% service fee, but some pay more, including some hosts with listings in Italy and Brazil. Hosts with listings in Brazil pay a 4% fee. The fee is automatically deducted from the total price (service fees are a percentage of the nightly price and any fees charged by the host, but exclude the guest service fee and taxes) to calculate the host payout.

          The split-fee pricing structure will no longer be available to hosts who use property management software to manage their listing, effective as follows: 

          August 25, 2025: New hosts who use property management software that sign up with Airbnb can only select the single fee structure.

          October 27, 2025: Most hosts who use property management software will automatically transition to the single fee structure.

          Hosts who don’t use property management software are not affected, and can continue to use the split-fee pricing structure.      [underline is mine]

            2. Single fee

            With this structure, the entire fee is deducted from the host payout. It’s typically 14–16%, though hosts with Super Strict cancellation policies may pay an additional 2%, and fees for stays of 28 nights or more may be less.

            Most hosts currently on the single-fee structure will soon start paying a new single rate of 15.5%, while hosts with listings in Brazil will continue to pay a 16% fee. These changes will take effect as follows:

            • October 27, 2025: Most hosts currently on the single-fee structure who are connected to property management software.
            • December 1, 2025: Most hosts currently on the single-fee structure who are not connected to property management software.

            This fee structure is mandatory for traditional hospitality listings–such as hotels, serviced apartments, etc., as well as hosts who use property management software.

            So from all of that above, it looks like since I'm on the split fee model now, I can continue on as I've been with no change. Section 1 does not have the Dec. 1st deadline in it.  

            As per Section 2, if I was on the single fee model before this, then I would be moved to the 15.5% rate on Dec. 1.  But I'm not.  

            So as I read it, there will be no change for me.  Of course, I expect in January, they will change all of us to this fee structure.  


            Interesting.  I was under the impression that all non-PMS users would be migrated on Dec 1.  Assuming they migrate you in January, how do you plan to react?

            I already absorb the 3% fee now, so if they change me to the single fee model, I will increase everything (daily rate, cleaning, pet fee) by 14.8%, which I understand will net me the same as before the change.  
        • Investor · Greenville, SC · Member since 2015 · 1k+ posts · 1k+ votes
          11mo

          I upped my prices on AirBnb by 15.5%. I have not seen a drop in bookings at all. Been steady fortunately.

        • Andrew SteffensBusiness Member
          Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
          11mo

          There is a lag in time from the hosts not paying attention, once they adjust and everyone raising their rate commensurately it should be business as usual.  We have seen a very slow slow season here, I attribute some of it to this and some of it to the airport meltdowns from the government shutdown.  Hopefully the effects of both will be done soon.

        • Don KonipolBusiness Member
          Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
          11mo
          Quote from @Tyler Divin:

          We use Hospitable, so on Oct 27th, we accepted the Airbnb increase Hospitable offered, raising our nightly rates and fees by 18.34% to compensate for the entire host fee being paid by the host.  Since then, we've seen a noticeable drop in Airbnb bookings.  I'm curious what others did, what you're planning to do, and what you're experiencing.

          Consumers HATE the lack of transparency in any service offering. Hotels are famous for this listing a lower daily rate and adding “resort”, “facility”, “prime”, “extra person”, “access” fees, etc. With AIRBNB the consumer is not worried about “who” pays “fees”, they just want to know the total price AND be able to easily compare pricing of different accommodations for the same time period.

          I’ve seen the following reasons for the decline in bookings mentioned in this thread: Government shutdown, competitors unknowingly absorbing the cost of the increased fee. All very true. But also, with the consumer able to more easily determine the true total cost the elasticity of demand dictates that some will pass or find alternative arrangements and hence bookings in total will be less than otherwise. UNLESS - the new transparency leads to MORE consumers utilizing AIRBNB because transparency is more important than cost - then AIRBNB can (theoretically) obtain INCREASED utilization.

          I did operate a couple of apartments I owned in NYC back 12 years ago as STR, but when NYC restrictions began to be enforced decided it wasn't worth the fight. I think what hosts object to about AIRBNB are the following

          1. Difficulty in “being heard” concerning any problem being faced by the host

          2. What on the surface appears to be fees twice as high as considered “reasonable”.

          3. Arbitrary and dictatorial decisions, especially concerning “disputes” rendered by AIRBNB

          4. Terms considered to be excessively punishing to the host5. Airbnb reliance provides hosts with few options to build “value” in their business.


          Private Mortgage Financing Partners, LLC
        • Real Estate Agent · Salt Lake City, UT · Member since 2020 · 490 posts · 205 votes
          10mo
          Quote from @Tyler Divin:

          We use Hospitable, so on Oct 27th, we accepted the Airbnb increase Hospitable offered, raising our nightly rates and fees by 18.34% to compensate for the entire host fee being paid by the host.  Since then, we've seen a noticeable drop in Airbnb bookings.  I'm curious what others did, what you're planning to do, and what you're experiencing.


           Been about the same so far. I also raised prices 12.5%. The 3% fee we were always getting charged is still accounted for but the new total fee is 15.5%. so 12.5 is the difference in prices to essentially be at the same prices you had prior to the change. Someone correct me if im missing something here?

          • Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
            10mo
            Quote from @Jeremy Jareckyj:
            Quote from @Tyler Divin:

            We use Hospitable, so on Oct 27th, we accepted the Airbnb increase Hospitable offered, raising our nightly rates and fees by 18.34% to compensate for the entire host fee being paid by the host.  Since then, we've seen a noticeable drop in Airbnb bookings.  I'm curious what others did, what you're planning to do, and what you're experiencing.


             Been about the same so far. I also raised prices 12.5%. The 3% fee we were always getting charged is still accounted for but the new total fee is 15.5%. so 12.5 is the difference in prices to essentially be at the same prices you had prior to the change. Someone correct me if im missing something here?


            You are incorrect.  As others have said in this thread, you need to raise it much more to net the same.  
            From PriceLabs:
            If you want to protect your margin, you must adjust rates to cover Airbnb’s higher distribution cost.
            To keep your payout the same, you need to increase all host-charged amounts — nightly rate, cleaning fee, extra guest fees, and any additional charges such as linen or management fees — by ~14.8%.

            If your PMS uses fixed markups, you’ll need to increase them from ~3% under the split-fee system to ~18.3%. This ensures Airbnb’s 15.5% cut comes off the gross price while leaving your payout intact. 

            💡 Alternatively, if you want the guest’s total price to remain the same as before (rather than keeping your payout identical), the adjustment would be ~14.1%.

            Example:

            • Old nightly rate = $100
            • New nightly rate = $114.79
            • Airbnb takes 15.5% = $17.79
            • Host payout = $97 (same as before).

            This ensures the margin stays the same, even though Airbnb’s distribution cost has increased. 
            If you recalculate to keep the guest’s total price the same, the new
            nightly rate would be ~$114.10 (≈14.1% increase). In this case, your
            payout would be slightly lower than before.

             






          • Real Estate Agent · Salt Lake City, UT · Member since 2020 · 490 posts · 205 votes
            10mo
            Quote from @Lauren Kormylo:
            Quote from @Jeremy Jareckyj:
            Quote from @Tyler Divin:

            We use Hospitable, so on Oct 27th, we accepted the Airbnb increase Hospitable offered, raising our nightly rates and fees by 18.34% to compensate for the entire host fee being paid by the host.  Since then, we've seen a noticeable drop in Airbnb bookings.  I'm curious what others did, what you're planning to do, and what you're experiencing.


             Been about the same so far. I also raised prices 12.5%. The 3% fee we were always getting charged is still accounted for but the new total fee is 15.5%. so 12.5 is the difference in prices to essentially be at the same prices you had prior to the change. Someone correct me if im missing something here?


            You are incorrect.  As others have said in this thread, you need to raise it much more to net the same.  
            From PriceLabs:
            If you want to protect your margin, you must adjust rates to cover Airbnb’s higher distribution cost.
            To keep your payout the same, you need to increase all host-charged amounts — nightly rate, cleaning fee, extra guest fees, and any additional charges such as linen or management fees — by ~14.8%.

            If your PMS uses fixed markups, you’ll need to increase them from ~3% under the split-fee system to ~18.3%. This ensures Airbnb’s 15.5% cut comes off the gross price while leaving your payout intact. 

            💡 Alternatively, if you want the guest’s total price to remain the same as before (rather than keeping your payout identical), the adjustment would be ~14.1%.

            Example:

            • Old nightly rate = $100
            • New nightly rate = $114.79
            • Airbnb takes 15.5% = $17.79
            • Host payout = $97 (same as before).

            This ensures the margin stays the same, even though Airbnb’s distribution cost has increased. 
            If you recalculate to keep the guest’s total price the same, the new
            nightly rate would be ~$114.10 (≈14.1% increase). In this case, your
            payout would be slightly lower than before.

             







             this makes sense thank you for clarifying! If I wasn't marking up the 3% fee previously on the PMS and want to keep the net the same, I would then mark it up 15.3% on the PMS with current fees? Would that be correct?

          • Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
            10mo
            Quote from @Jeremy Jareckyj:
            Quote from @Lauren Kormylo:
            Quote from @Jeremy Jareckyj:

             To keep your payout the same, you need to increase all host-charged amounts — nightly rate, cleaning fee, extra guest fees, and any additional charges such as linen or management fees — by ~14.8%.

          • Real Estate Agent · Salt Lake City, UT · Member since 2020 · 490 posts · 205 votes
            10mo
            Quote from @Lauren Kormylo:
            Quote from @Jeremy Jareckyj:
            Quote from @Lauren Kormylo:
            Quote from @Jeremy Jareckyj:

             To keep your payout the same, you need to increase all host-charged amounts — nightly rate, cleaning fee, extra guest fees, and any additional charges such as linen or management fees — by ~14.8%.


             excellent thank you lauren

        • Investor · FL · Member since 2016 · 332 posts · 388 votes
          10mo

          On our renter agreement we have a section of "how did you hear about us" that must be filled out to proceed.  What we noticed is on direct bookings we are seeing more who heard about us on Airbnb.  People now see a big difference on the book direct versus Airbnb price and are booking direct.  

        • Property Manager · Chattanooga, TN · Member since 2018 · 178 posts · 134 votes
          10mo

          Here's what I think the issue is.  The guest is seeing our nightly rate, inclusive of all fees, versus competitors' listings that aren't using a PMS system and still charge split fees; they're seeing a much lower nightly rate, with fees added only at checkout. But at that point, they're not going to back out of checking out because they assume that if they checked out on our seemingly more expensive property, they would have additional fees added on there too, so they go forward and complete the booking on the non-PMS split-fee listing.

          I think this might be Airbnb punishing us for using a PMS and listing our properties on their competitors' platforms.  I'm open to being proven wrong, but I think that's what's happening here.  I haven't been able to find any evidence that Airbnb is ever going to move non-PMS users to split fee off split fee, and I think right now their prices look WAY lower until checkout, and by then they're too far in to not book.

          The question becomes...what to do?  The only thing I can think to do is either (A) remove our Airbnb markup and effectively eat most, if not 100% of the host fees or (B) abandon our PMS (Hospitality) and get back on a split fee.  Thoughts?

          • Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
            10mo
            Quote from @Tyler Divin:

            Here's what I think the issue is.  The guest is seeing our nightly rate, inclusive of all fees, versus competitors' listings that aren't using a PMS system and still charge split fees; they're seeing a much lower nightly rate, with fees added only at checkout. But at that point, they're not going to back out of checking out because they assume that if they checked out on our seemingly more expensive property, they would have additional fees added on there too, so they go forward and complete the booking on the non-PMS split-fee listing.

            I think this might be Airbnb punishing us for using a PMS and listing our properties on their competitors' platforms.  I'm open to being proven wrong, but I think that's what's happening here.  I haven't been able to find any evidence that Airbnb is ever going to move non-PMS users to split fee off split fee, and I think right now their prices look WAY lower until checkout, and by then they're too far in to not book.

            The question becomes...what to do?  The only thing I can think to do is either (A) remove our Airbnb markup and effectively eat most, if not 100% of the host fees or (B) abandon our PMS (Hospitality) and get back on a split fee.  Thoughts?

            For awhile now, Airbnb guests can only see the total price, not a breakdown of the nightly price + fees.  Only after the guest goes through with the booking can they see a breakdown. 
            So right now, the hosts who are showing the lowest prices to guests are the ones with a PMS but who haven't upped their prices yet to compensate for this fee change (they didn't read the email, don't realize what's happened?).  They are undercutting me too, and I don't have a PMS and am still on the old split fee model.  

            And Airbnb is not allowing anyone to move back to the split fee, so that's not an option.  It's just a matter of time before these oblivious hosts realize their mistake and up their fee.

          • Property Manager · Chattanooga, TN · Member since 2018 · 178 posts · 134 votes
            10mo
            Quote from @Lauren Kormylo:
            Quote from @Tyler Divin:

            Here's what I think the issue is.  The guest is seeing our nightly rate, inclusive of all fees, versus competitors' listings that aren't using a PMS system and still charge split fees; they're seeing a much lower nightly rate, with fees added only at checkout. But at that point, they're not going to back out of checking out because they assume that if they checked out on our seemingly more expensive property, they would have additional fees added on there too, so they go forward and complete the booking on the non-PMS split-fee listing.

            I think this might be Airbnb punishing us for using a PMS and listing our properties on their competitors' platforms.  I'm open to being proven wrong, but I think that's what's happening here.  I haven't been able to find any evidence that Airbnb is ever going to move non-PMS users to split fee off split fee, and I think right now their prices look WAY lower until checkout, and by then they're too far in to not book.

            The question becomes...what to do?  The only thing I can think to do is either (A) remove our Airbnb markup and effectively eat most, if not 100% of the host fees or (B) abandon our PMS (Hospitality) and get back on a split fee.  Thoughts?

            For awhile now, Airbnb guests can only see the total price, not a breakdown of the nightly price + fees.  Only after the guest goes through with the booking can they see a breakdown. 
            So right now, the hosts who are showing the lowest prices to guests are the ones with a PMS but who haven't upped their prices yet to compensate for this fee change (they didn't read the email, don't realize what's happened?).  They are undercutting me too, and I don't have a PMS and am still on the old split fee model.  

            And Airbnb is not allowing anyone to move back to the split fee, so that's not an option.  It's just a matter of time before these oblivious hosts realize their mistake and up their fee.


            You're right.  I was looking at some listings and thought the Airbnb guest paid fee on split-fee listings wasn't applied until checkout, but the more I look, the more I realize that isn't the case.  I think you're right, the people who didn't adjust their rates and have taken an 18.34% haircut are soaking up a lot of the bookings right now.  I'm not so sure everyone is going to adjust, though.  The people who didn't are probably pleasantly surprised by their uptick in bookings.  If they're seeing higher occupancy, they might be pleased.  Also, I've already seen reports of people on PMS systems backing down and reducing their markup.  We've dropped ours down to 10% on a few of our listings to try to get some bookings in December.

        • Specialist · Atlantic City NJ · Member since 2018 · 115 posts · 50 votes
          10mo

          We’ve been monitoring our bookings, and so far the volume has remained about the same. Since we co-host most of the properties we manage, our payouts normally include both the management fee and the cleaning fee. We’ve avoided using Hospitable’s automatic percentage markup because it doesn’t translate properly for co-host payouts.

          With Airbnb’s new policy, the percentage is now taken from the entire booking amount—not just the nightly rate. That meant when we were receiving the full cleaning fee plus our hosting commission, owners were actually losing money. We needed an alternative to the percentage-markup model.

          What we’ve implemented over the past week is a 0% percentage markup and instead added a 25% resort fee to each booking. This brings our payouts to where they need to be. We set it above the previous 18% because Airbnb’s new calculation now pulls from both the nightly rate and the cleaning fee, which effectively takes a larger portion from the owner’s side.

          So far, this resort-fee approach is working well. It appears to translate correctly to owner statements in Hospitable, and guests do not see this as an additional fee on Airbnb. At this point, it seems to be our best solution, and we’ve not seen any meaningful decline in booking volume. In the offseason we do aggressively price on the lower side for most properties so thus far our prices are inline with our competitors. 

        • Real Estate Agent · Worcester, MA · Member since 2024 · 107 posts · 45 votes
          10mo

          I didn't see a drop in aribnb bookings but for some reason hospitable changed the cleaning fees automatically? Did this happen to you? They increased the cleaning fees 

        • Garrett BrownPro Member
          Rental Property Investor · Houston, TX · Member since 2024 · 516 posts · 553 votes
          10mo

          The biggest thing to note is that only about 30% of PMS-connected hosts (according to AirDNA) raised their prices to address the change. 

          That means about 70% of hosts did not raise prices, which probably skewed the data a lot. I raised prices by 10% across the board to see how it went. It will start to work itself as hosts realize how much things change with the new fee for hosts, but isn't an instant change for all.

          • Property Manager · Chattanooga, TN · Member since 2018 · 178 posts · 134 votes
            10mo
            Quote from @Garrett Brown:

            The biggest thing to note is that only about 30% of PMS-connected hosts (according to AirDNA) raised their prices to address the change. 

            That means about 70% of hosts did not raise prices, which probably skewed the data a lot. I raised prices by 10% across the board to see how it went. It will start to work itself as hosts realize how much things change with the new fee for hosts, but isn't an instant change for all.


            This is an evolving situation, but I wonder what percentage of the 30% that marked up their rates and fees have seen a noticeable slowing in Airbnb bookings and will reduce or eliminate their markup?  We accepted the Hospitable 18.34% markup on nightly rates and fees, but after experiencing a noticeable slowdown in Airbnb bookings, I reduced the markup on the nightly rates to 10% and am considering going down further.  I also wonder if the increase in occupancy that the no-markup crowd is experiencing is enough for them to consider not marking up at all.

        • Garrett BrownPro Member
          Rental Property Investor · Houston, TX · Member since 2024 · 516 posts · 553 votes
          10mo

          @Tyler Divin 100%. I don't think anyone really knows exactly what is best right now. The only thing anyone can do is learn the direct booking angle as best they can. 

          I haven't been affected by it much because we do 80-90% direct at most of my places, but I do have a few places that rely on Airbnb, and I would agree I have seen a reduction in activity, but only a full 12 months will tell the data, so we need to wait. 

        • Property Manager · Milwaukee, WI · Member since 2011 · 185 posts · 16 votes
          10mo

          I use Hospitable for STR management so they took care of it. No issues.

          • Property Manager · Chattanooga, TN · Member since 2018 · 178 posts · 134 votes
            10mo
            Quote from @Lokesh W.:

            I use Hospitable for STR management so they took care of it. No issues.


             How have your bookings been since Oct 27th?  No change?

          • Property Manager · Milwaukee, WI · Member since 2011 · 185 posts · 16 votes
            10mo
            Quote from @Tyler Divin:
            Quote from @Lokesh W.:

            I use Hospitable for STR management so they took care of it. No issues.


             How have your bookings been since Oct 27th?  No change?

            Good question :-). I have 2 bookings in Nov. The rest of them are from Vrbo. I think there is some slowdown because the Government shutdown and flight cancelations. I had one reservation cancelled due to this but fortunately someone else booked for those dates. The government reopened on Nov 14 but I am guessing that many people already made holiday plans at locations that they are able to drive. December and January will be a good test.
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