Airbnb's New Fee Structure: Understanding the Changes

Split-Fee Model (Previous Standard)

The split-fee model was the most common structure for many years. Under this model:

• Host Fee: 3% deducted from the host's payout
• Guest Fee: Approximately 14.2% of the booking subtotal (varies based on factors like cancellation policies)
• Calculation: Based on the overall booking including nightly rate, cleaning fee, and additional guest fees (excluding Airbnb fees and taxes)

Host-Only Fee Model (New Standard)

The host-only fee model eliminates guest fees entirely. Instead:

• Host Fee: 14-16% of the total booking cost (typically 15% for most hosts)
• Guest Fee: 0% - no service fees charged to guests
• Variations: Fee percentage can vary based on cancellation policies and location (e.g., 10% in Mainland China, 14% in some European countries)

Mandatory Implementation

For eligible hosts, the 15% host-only fee became mandatory as of December 7, 2020. Some countries like Croatia and Greece had mandatory host-only fees starting September 1, 2020. This means qualified listings are required to pay the entire 15% service fee to Airbnb from the host's rental income.

1. Guest Pricing Transparency

With 0% service fees added to rates, guests see the exact price they'll pay upfront. This transparency makes listings more attractive and reduces booking abandonment due to unexpected fees at checkout.

2. Potential Increase in Bookings

Airbnb reports that hosts switching to the new structure saw an average 17% increase in reservations. The lower apparent cost (no guest fees) and clearer pricing can attract more bookings.

3. Improved Airbnb SEO Ranking

Listings with transparent, guest-friendly pricing may receive better visibility in Airbnb's search results, potentially improving your ranking and exposure.

1. Geographic Inconsistency

In countries where hosts are not required to switch (US, Canada, etc.), listings may appear cheaper at first glance, creating competitive disadvantages for hosts using the new structure.

2. Fee Structure Confusion

The transition from split-fee to host-only creates confusion about how fees are calculated and who pays what. The change from a 3% host fee to a 15% host fee requires hosts to understand the new structure and adjust their pricing strategy accordingly.

3. Rate Adjustment Required

To maintain the same net income, hosts typically need to increase their nightly rates by approximately 14-15% to offset the higher host fee, which can affect competitiveness.

1. Add Your VAT Number

Ensure you add your VAT information to Airbnb. This prevents Airbnb from withholding VAT on host fees, which can affect your net income.

2. Adjust Your Nightly Rates

Since the host fee increased from 3% to 15%, you'll need to adjust your rates to maintain profitability. The recommended adjustment is approximately 14-15% increase in nightly rates to offset the fee change.

Calculation Example: If you previously charged $100/night and wanted to net $97 (after 3% fee), you now need to charge approximately $114/night to net the same $97 (after 15% fee).

3. Use a Channel Manager

If you're managing multiple listings or properties across different platforms, use a channel manager to automate rate updates. This saves time and ensures consistent pricing across all your listings.

4. Monitor Your Bookings

After adjusting rates, monitor your booking patterns. The goal is to maintain similar net income while potentially attracting more bookings due to transparent pricing.