Airbnb Host-Only Fee | What to Know about the 15% Host Fee

Did you know that listings using Airbnb's simplified pricing structure saw up to a 17% increase in bookings during its test phase? Understanding and adapting to Airbnb's service fee options could be the key to maximizing your earnings as a host or property manager.

Here's a look at the details of Airbnb's fee structures, how they impact your bottom line, and how to make the best choice for your Airbnb business model.

Understanding Airbnb's Fee Structures

Airbnb currently offers two main fee structures for hosts, simplified pricing (sometimes known as a host-only fee) and a split-fee structure. It is important to pay attention to the key differences of both structures, as it can significantly affect your nightly rate and therefore the bottom line.

Split-fee pricing: Here, Airbnb hosts pay a 3% service fee, while the guest gets charged an Airbnb guest service fee that ranges from 13% to 20%. This means guests often see a higher price at checkout than what's initially shown in the listing.

Simplified pricing: This is similar to traditional hospitality listings and other OTAs that don't have separate guest fee. In this model, the host pays a flat 15% service fee and there's no additional service fee for the guest. What the guest sees on the listing is exactly what they pay — no surprises.

Who Is Required To Have Mandatory Simplified Pricing?

Airbnb introduced mandatory simplified pricing on December 7, 2020, as a shift in its fee structure, affecting how certain Airbnb hosts manage their Airbnb service fees.

This host-only fee model requires specific categories of hosts to cover the entire service fee — typically 15% of the booking subtotal — instead of relying on the split fee structure, where a portion of the fee is charged as an Airbnb guest service fee.

By eliminating most guest service fees, Airbnb aims to streamline the total booking cost for guests and create a pricing approach similar to traditional hospitality listings. This pricing shift ensures that guests see an all-inclusive nightly price, excluding additional costs like cleaning fees, pet fees, or security deposits.

For hosts who must transition to this model, understanding its impact on host payouts, nightly rates, and overall pricing structure is critical.

Hosts connected to third-party software

If your Airbnb account is linked to vacation rental software like Hostaway, you're required to use simplified pricing.

Certain types of listings

If you're managing properties—such as aparthotels, hostels or serviced apartments — Airbnb mandates the use of simplified pricing. This rule applies because these types of listings often operate similarly to hotels and are expected to adopt a more transparent fee structure to compete effectively on the Airbnb platform.

Hosts in specific countries

If the majority of your listings are outside regions like the United States, Canada, Taiwan, Argentina, or Mexico, Airbnb requires you to adopt the host-only fee structure. This decision is part of Airbnb’s effort to create uniformity in pricing globally, especially in regions where cross-currency bookings and applicable taxes may already complicate the total booking cost.

How to Decide Which Model to Use

If you have the option to choose between the split fees and simplified pricing, your decision will largely depend on your business model, target audience and hosting goals. Each approach has its advantages, but understanding how they align with guest expectations, profitability, and market trends is key. Here’s a deeper dive into factors to consider:

Guest perception and booking rates

If your guests are particularly price-sensitive or tend to abandon bookings during checkout due to unexpected Airbnb fees, opting for the simplified pricing model can make your listing more appealing. By excluding Airbnb guest service fees, guests see an all-inclusive nightly price upfront, which can reduce friction during the booking process.

For example, a listing with a $100 nightly rate under the split-fee model may appear to cost $115–$120 after adding the guest service fee and applicable taxes, potentially deterring bookings. With simplified pricing, the entire fee is incorporated into the host's pricing structure, making the total price more transparent.

For Airbnb hosts in highly competitive markets or hosting properties with super strict cancellation policies, this approach can significantly boost booking rates.

Earnings per booking

For hosts who want to retain a higher percentage of their booking subtotal, the split-fee model might be more profitable. With this structure, hosts pay a smaller fee — typically 3% — and guests cover a separate Airbnb service fee, often around 14.2%.

When it works best: If your target audience is accustomed to seeing guest fees at checkout or you’re in a market where guests are less likely to be deterred by additional costs, the split-fee structure may maximize your host payout.

For long-term stays, having split fees can be especially advantageous because Airbnb fees for guests with extended bookings are often capped or reduced, keeping the total cost competitive.

Software integration

If your account is connected to vacation rental software like Hostaway, you won’t have the option to choose — simplified pricing is mandatory. Airbnb implemented this policy to simplify fee structures and align with other booking websites that require similar pricing structures.

Why it matters: Hosts using software integrations often manage listings across multiple channels, where the entire fee is typically absorbed by the host. Consistency across platforms ensures your pricing strategy works seamlessly, reducing guest confusion and simplifying Airbnb hosting.

Direct bookings and avoiding Airbnb fees

If you want to rely heavily on direct bookings to avoid Airbnb fees altogether, consider how the host-only fee model could align with your broader strategy. While Simplified Pricing increases the Airbnb host fee, it offers transparency that can complement your efforts by building trust and showcasing your property as guest-friendly.

Other considerations

• Additional fees: Regardless of the model you choose, clearly outline any additional fees like cleaning fees, security deposits, or pet fees in your listing to avoid misunderstandings.

• Cancellation policies: Hosts with strict cancellation policies may benefit from a pricing model that aligns with guest preferences, minimizing abandoned bookings.

• Understanding Airbnb fees: Familiarize yourself with the common fee structure for your market and property type to ensure your pricing remains competitive and profitable.

Analyzing the Impact on Hosts

Switching to simplified pricing can feel like a big change, especially if you're used to the traditional split-fee model.

Here's how it might impact your operations:

Control over guest pricing

One major advantage of simplified pricing is that you control the final price guests see. This can make your listing more appealing, as there's no surprise service fee added at checkout, which might encourage more bookings.

Price perception and competitive positioning

While you have more control over the final guest price, keep in mind that your nightly rate might appear higher compared to competitors using the split-fee model. It's important to adjust your pricing strategy to remain competitive.

Impact on long-term stays

If you often host long-term guests, simplified pricing could be less advantageous. The host pays a fixed 15% fee, regardless of the stay length, which could cut into your profits for extended bookings.

Pros and Cons of Simplified Pricing

Pros

Increased bookings

By eliminating the guest service fee, the total price presented to guests is more transparent, potentially leading to increased bookings. Airbnb reported that properties using Simplified Pricing during its test phase saw up to a 17% increase in bookings.

Pricing parity

Simplified pricing brings Airbnb in line with other booking platforms like Booking.com, which don't add a separate service fee for guests. This can make your property more competitive across platforms.

Improved search ranking and visibility

Listings with no additional guest fees may appear more attractive, potentially improving their ranking in Airbnb's search results. This increased visibility can lead to higher booking rates.

Cons

Higher visible rates

With the service fee included in the listing price, your nightly rate might look higher, which could deter price-sensitive guests or raise their expectations for the accommodation quality.

Less flexibility for long-term stays

As mentioned earlier, the fixed 15% fee may not be as favorable for longer stays, whereas the traditional model offers lower service fees.

Adjustment required

Moving to simplified pricing might require you to adjust your rates to keep your earnings consistent. This could mean raising your base price or adding extra fees, like cleaning fees.

Comparing the Pricing Models: Split-Fee vs. Simplified Pricing

To get a clear picture, let's break down an example of a 4-night stay at $100 per night, assuming a 16% service fee.

As the table shows, if you want to keep your earnings steady with Simplified Pricing, you'll probably need to raise your rates by about 14%. If you bump them up by 15%, you might even earn a bit more, while the guest's total cost stays the same.

Which Fee Structure is Better at the End of the Day?

Deciding which fee structure is better for your vacation rental business really comes down to your specific needs and market conditions.

Here's a quick comparison:

Solutions to potential issues

While the 15% host fee structure presents some challenges, particularly regarding earnings and profit margins, there are effective strategies to mitigate these concerns:

• Earnings per booking: Use Hostaway's dynamic pricing tools to adjust your rates in real time. This ensures your pricing remains competitive while covering the 15% fee, helping you maintain profitability without deterring guests.

• Booking rate: Highlight the all-inclusive pricing in your listing description so guests know there won't be any hidden fees. This transparency can make your property more appealing, especially in competitive markets.

• Guest perception: Use Hostaway's guest communication tools to emphasize your pricing transparency. This can lead to better reviews and repeat business, as guests appreciate knowing they are getting good value with no surprise fees.

• Competitiveness: Stay ahead of the competition by using Hostaway's competitive analysis tools to monitor local pricing trends. This will help you adjust your pricing in real time, ensuring your listing remains attractive in your market.

• Price sensitivity: Hostaway's dynamic pricing feature lets you fine-tune your rates based on market demand, helping you stay competitive while ensuring profitability. This is especially important in price-sensitive markets.

• Tax implications: Simplify your tax reporting by using financial reporting tools, which provide detailed breakdowns of earnings and fees, making it easier to manage your finances.

• Long-term viability: Regularly assess your market with Hostaway's analytics to ensure that the simplified pricing model continues to meet your financial goals. Staying informed about market trends allows you to adapt your strategy as needed.

• Search ranking & visibility: Use ranking management tools to boost your visibility in Airbnb's search results. This can help you capitalize on the benefits of simplified pricing, ensuring your listing remains prominent and attractive to potential guests.

• Impact on profit margins: Protect your margins by using Hostaway's revenue management tools to strategically adjust your pricing and occupancy rates. These tools help you maximize your earnings, even with the 15% fee.

Hostaway Advantage in Navigating Airbnb's Fee Changes

For hosts, the 15% host fee is a solid option in competitive, price-sensitive markets where lower costs drive higher bookings. Hostaway's suite of tools makes managing this structure easier, helping you maintain profitability and guest satisfaction. Alternatively, the traditional split-fee model offers higher earnings per booking and greater pricing flexibility, which Hostaway's advanced features can optimize for established hosts in less price-sensitive markets.

With Hostaway, the simplified pricing model integrates seamlessly, automating rate adjustments and keeping your listings competitive with minimal effort—ideal for managing multiple properties. New users will also find it easy to adapt to Airbnb's fee structure, thanks to Hostaway's intuitive platform and robust analytics that maximize earnings.

Ultimately, choosing between the two models should depend on your market conditions, guest demographics and financial goals. Hostaway equips you with the tools to navigate these changes effectively, ensuring your vacation rental business remains competitive and profitable.