Airbnb Completely Changed Their Pricing Structure (2025)
Overview
Starting this fall, Airbnb is phasing in a 15.5% host-only service fee across most listings that use Property Management Systems (PMS) — professional software platforms like Hospitable, Guesty, or Hostfully that help hosts manage multiple listings in one place.
Under the new model, Airbnb deducts the full service fee directly from the host payout, while guests no longer see a separate Airbnb service charge.
Airbnb says this change simplifies pricing for guests, but for many hosts, it means thinner margins unless rates are adjusted. Here’s what’s changing, why it matters for your income, and what tech solutions will help you stay profitable in 2026 and beyond.
What Changed
Host-only fees: Airbnb now deducts roughly 15.5% from the host payout for PMS-connected accounts. This replaces the previous split-fee model (where hosts paid 3% and guests paid the rest).
Rollout timeline:
Aug 25, 2025 – New PMS-connected hosts start on the 15.5% model
Oct 27, 2025 – Most PMS-connected hosts auto-migrate
Dec 1, 2025 – Broader rollout expected, though Airbnb has not confirmed whether all hosts will be included
Current scope: As of now, this change applies only to hosts using PMS software, but Airbnb’s communication suggests the model could expand in the future.
Reduced transparency: Many hosts learned of the update through PMS vendors and community forums, not direct Airbnb communication, leaving some confusion about how the fees interact with taxes and refunds.
Why This Matters
This shift may look small on paper — but for most hosts, it’s a 15% hit to every booking unless nightly rates rise to compensate.
Shrinking margins: Every $1,000 in bookings now nets only $845 unless you adjust pricing.
Competitive tension: Raising rates can push you above market averages, especially in crowded short-term rental markets.
Cash flow disruption: Lower payouts can throw off cleaning schedules, vendor payments, and cash reserves during slower seasons.
What Hosts Can Do
Industry leaders like Hospitable recommend a slightly higher adjustment — around 18.34% — to cover both the 15.5% host-only fee and the traditional 3% host service charge, ensuring you maintain your previous payout structure regardless of how Airbnb accounts for the change. Check with your PMS to see if they’ve adjusted their pricing.
To maintain your $200 payout:
$200 ÷ (1 − 0.155) = $236
That means you’d need to raise your nightly rate to $236 to stay even.
You can apply this same formula to any listing: Target payout ÷ (1 − 0.1834) = new nightly price.
What Hosts Can Do
1. Audit Your Pricing
Run your average nightly rate through the formula above. Adjust your calendar pricing or minimum-night settings to absorb the new fee without hurting your occupancy rate.
2. Use Dynamic Pricing Tools
Software like Pricelabs, Wheelhouse, or Beyond Pricing can automatically calculate offset rates based on Airbnb’s fee changes and local market conditions.
3. Communicate With Repeat Guests
For loyal guests, a quick message explaining the pricing adjustment helps retain trust—especially if you offer them added value like flexible check-in or in-home perks.
4. Diversify Your Income Beyond Bookings
With Airbnb taking a larger share of stay revenue, hosts need new revenue streams that aren’t tied to nightly rates. The Host Co was created to help hosts add hotel-level amenities to their stays, and reduce reliance on bookings for revenue with free digital storefronts.
READ MORE: CONFUSED ABOUT AIRBNB SERVICES? HERE’S WHAT YOU SHOULD KNOW.
How The Host Co Helps
The Airbnb update is a reminder that platform fees are out of your control—but guest experiences aren’t.
With The Host Co, you can:
Add upsells and amenities like private chefs, in-home massages, local coffee, or flower delivery—directly in your guest’s digital guidebook or welcome screen.
Offer early check-ins, late check-outs, and in-home rentals (like kayaks or scooters) that add profit without increasing your nightly rate.
Embed your Host Co store on your direct booking site or share it across platforms for consistent revenue everywhere guests book.
Even one late check-out or local service can offset the nightly revenue you lose to Airbnb’s new fee.
The Bigger Picture
This fee change continues Airbnb’s trend toward consolidating profits while shifting risk to hosts. By handling all payment processing under its “merchant of record” model, Airbnb simplifies compliance with banks—but hosts shoulder the financial trade-offs.
Meanwhile, the market is shifting: over 56% of short-term rental bookings now occur off Airbnb, through direct channels and niche booking sites.
Tools like The Host Co make that diversification possible—helping hosts own their guest experience, control upsells, and build stable income that lives outside any single platform’s rules.
READ MORE: THIS HOST DOUBLED THEIR REVENUE VIA THEIR HOST CO STORE
What We’re Hearing from Hosts
Across LinkedIn and Reddit, hosts are already voicing frustration:
“Airbnb keeps saying it’s about transparency for guests—but we’re the ones paying for it.”
“If hosts don’t raise prices fast, we’ll be absorbing a double-digit hit every booking.”
Transparency and control have become the top priorities for many in the hosting community.
Bottom Line
Airbnb’s 15.5% host-only fee (currently impacting PMS-connected hosts) means:
You’ll earn less per booking unless you raise prices
Guest pricing may rise, impacting competitiveness
Platform reliance is riskier than ever
Your best protection:
Re-evaluate your pricing
Track your true payouts
Expand your income beyond platform fees
The Host Co helps you do exactly that: add experiences guests love, balance out lost margins, and future-proof your income.
👉 Create your free Host Co store today to take control of your guest experience and your payouts.
