There’s been a lot of buzz surrounding Airbnb’s upcoming change to its service fee structure. Starting October 27, 2025, all Airbnb hosts using property management tools to manage their properties (such as Host Tools) will transition to the host-only fee model. While it may sound like a big shift, it’s a change that will actually be favorable for hosts using a PMS. Let’s break things down to make sense of what this means and how it can benefit your short-term rental business.

Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today!

What’s Changing?

Currently, Airbnb operates on a split-fee structure where both hosts and guests pay separate service fees. Starting October 27, listings managed using property management software (including channel managers and dynamic pricing tools) will transition to a single host-only fee model. 

This means that Airbnb will deduct a single 15.5% service fee directly from the host’s price. Previously, Airbnb was taking in a total of 17.1% to 19.5% in service fees, split between host and guest fees. 

Why this Change is Great for Hosts

At first glance, a higher service fee for hosts might seem intimidating. But when you look at the overall math, this new model can actually work in your favor. Here’s why:

Lower overall fees

With the host-only fee, the total fees paid to Airbnb will decrease by 1.6% to 4%. This means less money is going to Airbnb, and a bit more money is going into your pocket.

Easier price adjustments for hosts

Since fees are now consolidated, you, as a host, have more control over how you price your property. You can slightly increase your base price to cover the higher host fee while maintaining the same total cost for guests. For example:

• If you previously charged $100 per night, with a 14.1% to 16.5% guest fee and a 3% host fee, the guest would pay approximately $115, and you’d typically receive about $97.
• Under the new model, you could set your price to $115 per night. Guests would still pay $115, but your actual payout, after the 15.5% host fee, would be roughly $97.18.

What Hosts Should Do 

On October 27, 2025, update your pricing to reflect the host-only service fee. As mentioned above, if you currently charge $100 per night, you want to consider increasing your rate to $115 per night. Host Tools users can easily adjust their prices by setting a channel-specific rule to raise prices by 15% on just Airbnb.

When updated as in the examples above, guests will continue to pay a similar price as they did before. In this way, your occupancy rates shouldn’t be affected by these pricing updates. If you do not update your nightly rates, your earnings per booking will decrease. 

Please note that, according to reports, starting December 1, 2025, Airbnb plans to extend the host-only fee to all hosts, regardless of whether they use a property management system. 

What do Airbnb Service Fees Cover?

You may be wondering what exactly Airbnb service fees cover. The host service fee covers the cost of running the Airbnb platform, including customer support, secure payments, and marketing efforts to attract bookings. 

How Host Tools Can Help

At Host Tools, we understand that changes like this might cause uncertainty. However, our platform is here to make the transition simple for you. With our property management software, you can easily monitor and adjust pricing to reflect these changes without hassle. Plus, by using Host Tools, you’re staying ahead of the competition with features like AI auto-replies, smart lock integrations, automated messaging, and a whole lot more.

Change can be a little nerve-racking, but with the right tools and our support, your business will adapt and thrive. Consider this an opportunity to evaluate your pricing strategy and ensure you’re maximizing your earnings in this new system. Host Tools has your back every step of the way!

You can learn more about these changes by visiting Airbnb’s Resource Center.

Host Tools provides an automated, unified calendar for short-term rental hosts, allowing you to seamlessly list on all major channels. Start your free trial today!