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Airbnb Service Fee Update

Information about the change to Airbnb's fee structure

Rachel Tommasino avatar
Written by Rachel Tommasino
Updated this week

Airbnb is implementing a major change to its fee structure for all hosts using property management software (PMS) like Hostify. Starting October 27, 2025, all PMS-connected properties will automatically switch to a 15.5% host service fee structure.

πŸ” Key Details

Timeline

  • Now - October 26: Early adopters can switch manually and pay 15% instead of 15.5%

  • October 27, 2025: Automatic transition to 15.5% for all PMS-connected hosts

  • New hosts (created after August 25, 2025): Automatically get a 15.5% fee regardless of PMS connection

Who's Affected

βœ… ALL Hostify clients with Airbnb connections (unless already on host-only fees)

βœ… Properties labeled as hotels that were already paying 15% (now increases to 15.5%)

βœ… Traditional hospitality listings (hotels, serviced apartments, etc.)

What Changes

The markup percentage needed varies based on your previous pricing strategy. Ensure you calculate the appropriate markup for your specific situation to maintain your desired revenue levels.

  • Before: Host pays ~3%, guest pays ~14-16% service fee

  • After: Host pays 15.5%, guest pays no separate service fee

Understanding the Markup Calculation

To fully offset the new 15.5% service fee, the required channel-specific markup percentage depends on your previous fee structure:

  • If you were previously offsetting the 3% commission, apply an 18.34% markup to maintain your current revenue

  • If you were NOT previously offsetting the 3% commission: A 14.3% markup is sufficient

Markup Calculation Formula

You can calculate the required markup percentage using this formula:

(100 / (1 - OTA service fee)) - 100

Critical Considerations

  • Markup applies to nightly rates only - All other fees (cleaning fees, management fees, etc.) will still be subject to the 15.5% commission

  • Consider restructuring your fee strategy by converting certain fees (such as cleaning fees) into adjustable management fees that can be customized per channel to better offset the service fee

Why switch early? If you don't switch now but add the markup, your properties will show inflated pricing (accounting for both guest + host fees) until October 27, potentially filtering you out of search results.

πŸ’‘ Understanding the Impact

Revenue Example

  • Today: You set $100, earn $97, guest pays ~$115

  • With the new structure, you set $115, earn $97.18, and the guest pays $115

Benefits of the Change

  • Simplified pricing for guests (no separate service fee)

  • Better search ranking potential

  • Competitive pricing across channels

  • More control over what guests actually pay

Important Notes

  • Markup applies only to the base/nightly rate

  • Consider adjusting cleaning fees accordingly

  • Markup can be negative if needed

  • Settings need to be configured per listing

🚫 What This Is NOT

❌ Not an additional cost - this fee structure has always existed, just moving from guest-side to host-side

❌ Not a Hostify fee - this is purely an Airbnb policy change

❌ Not optional - mandatory for all PMS-connected hosts

Remember: Guests will pay approximately the same total amount; the fee is simply being collected differently for transparency and simplicity.

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