Changes to Airbnb Service Fees: What Does This Mean for Individual Hosts?
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Changes to Airbnb service fees: what does this mean for individual hosts?
Airbnb is restructuring its service fee system. In the future, the model in which the host pays the full service fee will become the default for individual hosts as well.
As a result, guests will see clearer prices when searching, but it is worth reviewing your nightly rates to ensure your income does not decrease.
In brief: what should you do?
If you have been using the split service fee model up until now, raise the prices set in your calendar. This way, your previous net income can be maintained even after the higher Airbnb fee is deducted.
What exactly is changing?
Until now, most individual hosts paid a split service fee. This meant that:
- as a host, you paid approximately 3% in transaction fees;
- the guest paid a separate service fee when finalising the booking.
Under the new system, the separate service fee charged to guests is being removed. Instead, Airbnb will deduct a single, fixed 15.5% service fee from you.
Why might this be beneficial for guests?
Guests will see a clearer price when searching. No separate service fee appears at the end of the payment process, meaning fewer unexpected costs.
This may also have an effect on booking appetite: it is easier to make a decision when the exact cost of the accommodation is visible from the very first moment.
How should you reprice your listing?
The 15.5% fee will now be deducted by Airbnb from your earnings. If you leave the old prices in your calendar, you will end up with less money.
The goal is for you to retain the same net income as before.
Example calculation for repricing:
Let us say that up until now100 EURwas your base price set in the calendar.
- Old model:From this 100 EUR, after deducting the 3% host fee, you received a net amount of 97 EUR.
- New model:In order for your net 97 EUR to be maintained after the higher (15.5%) Airbnb fee is deducted, you need to raise your calendar price to115.5 EUR. (This ensures your income will not decrease.)
Practical rule:Simplyraise your previous prices by 15.5%!
This guarantees that the amount you keep in your pocket does not decrease, whilst guests will see a far clearer and more transparent price in the search results.