Effective October 27, 2025, Airbnb is changing how service fees are handled for property managers using a Property Management Software like GuestWisely. This update simplifies their fee structure, but it also has serious implications for your pricing, payout, and overall channel strategy.
In this article, we’ll walk you through the details of this change, what it means for your short-term rental business, and how to adjust your strategy to stay profitable.
Why Airbnb Is Making This Change
Until now, Airbnb used a “split-fee” model. Hosts paid a 3% fee, and guests paid a separate Airbnb service fee of around 10% to 16%, depending on the booking.
Starting in October 2025, Airbnb is replacing this model with a single 15.5% host-only fee. According to Airbnb, this change creates a more transparent experience for guests by showing them a single price without additional service fees added at checkout.
The timeline for the transition is as follow:
- August 25, 2025: New hosts using a PMS will be required to use the single-fee model
- October 27, 2025: Existing PMS-connected hosts will be automatically transitioned
- December 1, 2025: The single-fee model becomes standard for nearly all hosts, including those not using a PMS
If you’re using GuestWisely to manage your Airbnb listings, this change will apply to you starting this October.
Before and After: How the Service Fee Works
Let’s compare how the service fee structure affects pricing and payouts.
Before the change:
• You list your property at $100
• Airbnb deducts a 3% host fee
• The guest sees $115 (including Airbnb’s 12–15% guest service fee)
• You receive $97 as your payout
After the change:
• You list your property at $100
• Airbnb deducts 15.5% as a host-only fee
• The guest still sees $100
• You receive $84.50 as your payout
If you don’t adjust your prices, you could lose over 12% in earnings per booking. That’s why it’s crucial to review your pricing strategy now.
What This Means for GuestWisely Hosts
1. Your Margins Will Shrink If You Don’t Adjust
If you continue using your current prices, you’ll see lower payouts starting in October. To maintain your revenue, you’ll need to increase your Airbnb listing prices by approximately 14.8%.
2. Pricing Must Be Adjusted Strategically
To preserve your current earnings, use this formula:
New Airbnb Price = Old Price × 1.1479
For example, if your listing was previously $100, you’ll need to update it to around $115 to receive the same payout.
3. Channel Strategy Needs a Refresh
With Airbnb now charging the same effective fee as Booking.com (roughly 15%), it’s a good moment to re-evaluate which OTAs deliver the best return on investment. Vrbo’s host-only fee is still around 8%, and direct bookings remain the most profitable option overall.
Why Connect Through GuestWisely?
GuestWisely users can take full advantage of Airbnb’s reach while simplifying operations with our integration. Here’s why it pays to connect through GuestWisely:
- No extra costs or third-party subscriptions required
- Ideal for professional hosts primarily using Airbnb, Vrbo, and Booking.com
- Consolidate guest messages, reviews, and pricing in one place
- One dedicated line of support through your GuestWisely account
- Full control over pricing, cancellation policies, and more from a central dashboard
How to Prepare for the Change
Here is a small checklist to help you prepare for the upcoming pricing strategy change:
1. Audit Your Airbnb Pricing
Run a pricing analysis across your Airbnb listings. Use the formula above to recalculate your base prices and maintain your desired payout.
2. Update Pricing Through Your GuestWisely Dashboard
With GuestWisely, you can update Airbnb rates directly and apply batch changes if needed. This helps you stay consistent and efficient.
3. Monitor Performance
Watch for any changes in conversion rate, booking volume, or guest behavior. Slight adjustments may be needed after your initial updates.
4. Diversify Channel Strategy
Continue investing in other channels like Vrbo and Booking.com, and explore boosting your direct bookings through your GuestWisely-powered website.
Final Thoughts
Airbnb’s move to a 15.5% host-only service fee simplifies the booking experience for guests but requires proactive planning on the host side. Without adjusting your prices, you could see a noticeable drop in revenue.
As a GuestWisely customer, you’re in a strong position to respond quickly. You can adjust rates across listings, streamline operations, and re-evaluate your distribution strategy from one centralized platform.
Have questions about your Airbnb strategy or pricing updates? Our team is here to help. Reach out anytime or start reviewing your Airbnb rate setup through your GuestWisely dashboard today.
