Airbnb changes its commission system: what it means for hosts

The short-term rental world is constantly evolving, and Airbnb—undisputed leader in the industry—continues to redefine the rules of the game. One of the most significant and widely discussed updates concerns changes to its commission model, a topic that directly affects the pockets of millions of hosts and, indirectly, those of guests.

Starting December 1, 2025, Airbnb will extend the host-only commission model to all hosts. This shift promises to simplify the fee structure but also introduces new challenges and opportunities.

In this article, we’ll break down the changes, examine their impact on hosts and guests, and share practical strategies to navigate this new reality.

What is the host-only commission model?

Traditionally, Airbnb offered two main commission models: the split-fee model and the host-only model.

The split-fee model looked like this:

Host → around 3% of the subtotal

Guest → around 12–16%, shown at checkout

In the host-only model, the entire service fee is paid by the host, and guests don’t see any additional fees at checkout—only the final price set by the host. This model has often been preferred by hosts who want to offer more transparent pricing and avoid surprises at checkout.

With the new model, the entire fee is charged to the host, at a flat rate of 15.5% (16% in Brazil), and guests pay no additional commission.

This change reflects a broader industry trend: price transparency has become a top priority for consumers. Platforms like Booking.com have long used a commission model where the host covers the full fee and the guest sees only the final price.

With this move, Airbnb is aligning with industry standards, aiming to make its pricing more competitive and easier for users to understand. The challenge for hosts will be communicating these pricing changes clearly and justifying them in an increasingly competitive market.

Impact on hosts: how to protect your margins

The jump in commission is significant: from 3% to 15.5%—an increase that can eat into your profits if you don’t take action.

How to recalculate your prices

To maintain the same profit margin, it’s essential to raise your prices. The recommended formula is to increase your base rate, cleaning fees, extras, and add-ons by about 14.8%.

Example:

Old price: €100 → New price: approx. €114.80 → After 15.5%, you still earn about €97

Alternative approach:

If you want to keep the price perceived by guests more or less the same, a slightly lower markup—around 14.1%—may be enough.

Impact on channels and competitiveness

In some markets (e.g., Europe, non-US), many hosts were already using the host-only model with ~15% commissions. In those cases, the new 15.5% is only a slight increase. In the US, the shift is more dramatic: from a split-fee system to a host-only 15.5% model.

The price guests now see includes everything—this could improve conversion rates, as it removes the surprise fee at checkout.

Impact on guests: pricing transparency and perceived value

While the new commission policy has a clear, direct impact on hosts, it also affects how guests experience and perceive bookings.

Airbnb says the goal of the host-only model is to improve pricing transparency, removing the service fee guests used to see at checkout. In theory, this should make the booking process smoother and make the total stay cost more clear from the start.

In the past, guests could be surprised by extra service fees that appeared only at the end of the booking process—often creating a feeling of hidden or unexpected costs. With the new model, the initial price guests see is the final price, including Airbnb’s fee (paid by the host).

This brings Airbnb closer to how traditional hotel booking platforms operate, and could help build trust and reduce booking abandonment.

Key strategies to adapt while protecting your profits

1. 1. Adjust your prices smartly

Use the markup formula above to update all rates while preserving your margin. Don’t forget to update extras like cleaning or guest fees too.

2. Automate with dynamic pricing

Tools like Smartness allow you to apply markup automatically, saving time and avoiding errors.

3. Diversify your channels

Explore alternative OTAs like Vrbo (lower host commissions ~8%, but often fees for guests), or Booking.com (commissions around 15–20%).

4. Promote direct bookings

Drive more traffic to your own website or direct booking channels to eliminate commissions entirely and build guest loyalty.

5. Focus on the guest experience

Better communication, simpler check-ins, and overall smoother stays increase guest loyalty and reduce the need to compete on price alone.

Conclusion: turn an obligation into an opportunity

Airbnb’s shift to a 15.5% host-only model is a major change, but it’s not unmanageable.

• Adjusting your prices using the recommended formula helps protect your margins
• Focusing on distribution, smart tools, and guest experience can turn a challenge into a competitive advantage

Don’t let Airbnb’s commission hike eat into your profits. With Ciaobooking, you can manage your prices and channels with ease and efficiency. Request your free demo today!