On August 25th, Airbnb host service fee will see a structural change, different to the current commission model, that will have immediate operational implications to property managers worldwide.
Currently Airbnb uses a ‘split fee’ system, where guests and hosts each contribute toward the platform’s service fees, however from October 27th, 2025, this will change to a standardized single service fee, to be paid entirely by the property host.
If you manage multiple properties, use a PMS, or rely on Airbnb as a primary distribution channel, this matters. The headline is simple: distribution cost is rising, but margins don’t have to fall if you plan ahead and adapt your pricing strategy to the new model.
What is the airbnb host service fee percentage in 2025?
Airbnb is moving many PMS-connected accounts away from its long-standing split-fee model into a universal host-only model.
Starting in October 2025, Airbnb will roll out a standard 15.5% host-only service fee for most property managers using a PMS. By December 1, 2025, even non-PMS hosts will be switched to the same model.
In the current model, hosts pay around 3% of the service fee, and guests cover the remaining 14-16%. After October 27, 2025, Airbnb will implement a mandatory host-only fee of 15.5% for PMS-connected accounts, with most remaining non-PMS hosts following by December 1, 2025.
Depending on where you operate, this will affect you differently. For many U.S. based property managers this is a large change, and many PMS-connected professionals will lose access to the split-fee option altogether. In Brazil, the new fee will be even higher than the U.S. at 16%.
In Europe this will represent less of an upheaval, because since 2021 managers have already been paying around 15% host-only fees. The new regulations will be only a relatively small increase from the current rate.
Why Airbnb made this change
Airbnb frames the move as a simplification: make pricing clearer for guests and reduce friction at checkout. When guests see a clean, all-in price rather than a low nightly rate plus an unexpected service fee, conversion tends to improve. That’s the behavioural driver.
Strategically, this aligns Airbnb with many OTAs and hotel-style pricing models that present guest-facing totals upfront. It also streamlines accounting and helps Airbnb position itself as a more hotel-like marketplace for consumers who expect transparent pricing.
Finally, by standardizing the fee, Airbnb reduces variability and complexity for its search algorithm and for price comparison behaviours across its inventory.
How does the single fee structure impacts property managers
The most obvious impact of the new fee structure is that property managers will now have to bear more of the cost of doing business. The immediate implication is a potential margin squeeze unless nightly rates, cleaning fees and extras are recalibrated.
Let’s take a look at how this impact varies by market.
United States
Property managers in the U.S. will experience the biggest change, as most currently operate under the split-fee model where the host pays around 3%. Switching to a 15.5% host-only model is a material increase in distribution cost of up to 12.5% which is enough to make a significant dent on profit margins.
Europe and non-U.S. markets
Many European PMS-connected operators have already been on host-only fees of around 15% since 2021. The upcoming jump to 15.5% is modest, but will still require some calibration of pricing so that payouts remain consistent.
Non-PMS hosts
Small independent hosts who do not use a PMS may retain a choice for a little longer, (until December 1, 2025), however with competition dynamics set to shift, there may be advantages in becoming early adopters of the new system. Guests will increasingly expect all-in pricing, and PMS-connected operators will have a uniform pricing presentation advantage.
How to preserve your margins
If you want your net payout to remain the same after Airbnb’s 15.5% is taken from the gross price, you must increase host-charged amounts across the board: base nightly rate, cleaning, extra-guest fees, linen, or management surcharges.
Functionally this is the same for you and your guests: Here’s a simple formula to demonstrate.
New Price = Old Price × 1.1479
But why 1.1479?
The host payout under the split-fee model (after a 3% host fee) is approximately 0.97 of gross revenue.
Under the new 15.5% host-only fee your payout is approximately 0.845 of gross revenue.
Dividing 0.97 by 0.845 equals 1.1479. Practically, that’s about a 14.8% increase to preserve your payout.
Now let’s look at a pair of examples:
Current split-fee model
Nightly rate of $100 plus $15 service fee.
Guest pays $115, host earns 0.97 of $100 = $97.
New single-service fee model
Adjust nightly rate by 14.8%, equals $114.8 without a service fee
Guest pays $114.8, host earns 0.845 of $114.8 = $97.
As you can see, the result is almost exactly the same for both you, and your guests.
What this means for your distribution strategy
Airbnb’s fee rise means that property managers may need to rethink the dynamics of multi-channel management.it’s a signal to rethink how you distribute your listings. That’s where a smart multi-channel strategy and the right tools can make all the difference.
Channel fee comparisons
Vrbo’s host-facing costs are typically lower than Airbnb’s new 15.5% rate (Vrbo often runs around 5-8% host cost), and Booking.com can be similar or higher depending on payment and preferred programs.
That makes Vrbo relatively more attractive from a host cost perspective but not necessarily to guests. Vrbo often adds guest-facing service fees which can make totals higher for certain searches. We recommend using a blended channel strategy to leverage Airbnb’s strong consumer demand, Vrbo’s family and long-stay bookings, Booking.com’s reach for last-minute city bookers, and direct channels for better control over your margins.
Rate parity and visibility
Guests compare total price across OTA search results, so maintaining parity on the all-in total becomes critical. Small independent hosts who stick with split fees can potentially look artificially cheaper in some search displays (at least until guests see totals at checkout).
Diversification is essential
Relying on a single OTA increases your exposure to structural cost changes. Managers should optimize a mixture of listings across Airbnb, Booking.com, Vrbo and direct channels. Channel managers like Rentals United make this operationally feasible.
How Rentals United helps property managers adapt
A channel manager is the perfect tool for adapting quickly to new regulatory changes, while maintaining revenue margins and scalability. Here are five benefits you’ll get from integrating a channel manager with your rental business:
- Real-time rate updates
Distribute recalculated rates to all channels automatically so your all-in totals stay aligned across listings. - Integration with dynamic pricing tools
Automate pricing in response to changing market conditions, allowing you to optimize your revenue in times of higher or lower demand. - Rate parity
Enforce consistent rules on search results across all platforms, so that your guests see consistent total prices and you avoid accidental undercuts. - Inventory control and channel optimization
Reduce over-reliance on Airbnb by activating other channels, tracking performance, and shifting inventory to the best-performing mix of large OTAs and niche channels. - Data driven strategies
Use historical data to model the impact of fee increases on revenue and occupancy, and test different markup strategies before full rollout.
If you already use a channel manager, check recommended markup settings tied to Airbnb’s new fee. If you don’t, now’s the time to consider centralizing distribution control.
Practical rollout plan to adjust your rates on Airbnb
So what does this mean for you? If you’re a PMS-connected property manager wondering how to best adapt to the new 2025 Airbnb fee changes, here’s a 30-day checklist that may help you ease into the transition.
Please note that these recommendations are only indicative of a plan to re-design your distribution strategy.
Pricing simulation
Apply the 1.1479 multiplier across your property categories to see how rates need to shift. Pick one or two listings as test cases and monitor their performance against unchanged listings to compare results.
Update PMS markups
Markup along with cleaning fees and any extras so they align with the new commission. Once those adjustments are in place, schedule your channel manager to push the revised rates and fees to all platforms.
Keep a close eye on competitor pricing
Stay ahead of pricing changes, while you monitor how quickly your bookings are coming in. If you notice fewer conversions on short stays, consider tactical tweaks like weekend discounts or adjusting rates for one- and two-night bookings.
Monitor KPI’s
Review your financials, guest feedback, and occupancy data. If conversions and margins look strong, roll the changes across your full portfolio. If not, make small adjustments to fine-tune your approach before expanding it further.
This measured approach ensures you’ll stay proactive, protect your margins, and remain competitive as Airbnb’s new commission model comes into effect.
Conclusion
Airbnb’s move to a host-only 15.5% single service fee standardizes pricing presentation for guests and raises distribution costs for many managers, most strikingly in the U.S.
The formula to respond is straightforward. Do the necessary calculation, update your pricing to preserve your margins, use channel management to push adjusted totals, and diversify your distribution strategy to take advantage of the new landscape.
With correct rate recalibration, a careful mix of OTA channels, and automation through a trusted channel manager, you can improve your guest experience, and use the change as a catalyst for smarter growth rather than a threat to profitability.
Rentals United’s channel manager offers a powerful toolkit to help grow your business.