Airbnb’s New Fee Structure | The Pros and Cons

Before renting your home to Airbnb or think of becoming a host, think about how much the platform is actually charging you or how is it calculated ? There is no doubt, vacation rentals are a effective reference of income but it is important for you to understand how Airbnb ’ randomness fees are structured in order to minimize expenses while managing your net income .
Without further bustle, let ’ s have to the kernel on :

  • What are Airbnb Service Fees ?
  • What is Airbnb ’ s new fee structure and why is it changing ?

  • Who is eligible and is it mandatary ?
  • What are the benefits and downfalls of the fresh tip structure ?
  • How do I get ready for this ?

What Are Airbnb Service Fees?

Airbnb new fee structure
When a book is confirmed, Airbnb charged a service fee covering the price of services such as 24/7 customer subscribe and for Airbnb operations to sail smoothly. With that said, there are 2 fee structures for stays mentioned below :


The most common and for the longest meter, Airbnb had been operating with the split-fee model. however, it has been lento deteriorating among hosts and guests. The split-fee model deducts a service fee of 3% from the host’s overhead while same time charging it to the guests. Keep in mind, there are some exceptions like if say using Super Strict cancellation policies may raise the share a bit .
Take bill, guests have to pay a service fee of an overall 14.2% of the booking subtotal which could besides vary according to the number of factors and is shown during the check before booking so guests know what to expect .
How it is calculated?
It is calculated by the overall booking including the nightly pace, the scavenge tip, and the extra node fee though excluding Airbnb fees and taxes .

Host-only fee

The host-only tip model eliminates guest fees, making it guileless and simple for guests. rather, hosts need to pay the whole service tip typically ranging from 14 % -16 % of the total book cost .
again, this depends on factors like if the host uses Super Strict cancellation policies or which countries listings are more common the host has, like for case in Mainland China, it is calculated as 10 % while in some european countries, it is actually 14 % .

What Is Airbnb’s New Fee Structure and Why Is it Changing?

Based on the feedback given by many professional hosts, Airbnb launched a new fee structure of 15% host-only service fee deducted from each payout which is also known as “Airbnb Simplified Pricing”. This model social organization is for hosts who are connected through third-party software made available from December 7, 2020, allowing them to have more control over their rates while removing the choice between the host-only and divide fee .
But take note, countries that have a majority of their listings in the US, Canada, Mexico, Uruguay, The Bahamas, Argentina, and Taiwan are excluded from this choice and will placid have the choice between the two Airbnb model tip structures : host-only and split-fee.

furthermore, existing bookings will not be affected by this deepen and will only affect after December 7th, 2020. With that said, Airbnb Simplified Pricing offers hosts an opportunity to set a more accurate price strategy which allows listings to be more attractive to guests hence more bookings. Airbnb states that hosts that have switched to Airbnb ’ s newly fee structure have seen an overall increase in bookings of an average of 17 %. The reason for this is the visibility in pricing to guests, with the impression of saving money due to no add fees when booking .
In fact, if you are worry that with this newfangled fee structure that you might be losing gross. Think again ! By adjusting the prices of your nightly rate by 14 % to counterbalance the addition in Airbnb host fee, the guest will just be paying the equal come as earlier and still have the same tax income or possibly a bit more .

Who Is Eligible and Is It Mandatory?

The fee structure is presently open only to professional hosts excluding the US, Canada, Mexico, Uruguay, The Bahamas, Argentina, and Taiwan, who are connected to third-party software providers such as Hostaway, Guesty, immunoglobulin m, etc. making it compulsory as of December 7, 2020. Take note from September 1, 2020, the host-only fee became mandatary to countries like Croatia and Greece. With that said, you can besides be eligible if your account is connected with third-party apps such as Pricelabs, WheelHouse, or website/app connected via API consolidation .
To simplify, this means that listings that are qualified for this new fee structure a.k.a ‘ Airbnb Simplified Pricing ’ introduced are forced to do the changes by required to pay the entire service fee of 15 % to Airbnb from December 7 onwards from the host ’ s rental income .

What Are The Benefits and Downfalls To The New Fee Structure?


  1. Guest transparency

To all hosts using the new service tip structure, take note, there will be a 0 % service fee added to your rates, creating more transparency to guests which will attract potential guests to eagerly book as there are no unexpected fees when confirming with their payments .

  1. Increase your bookings

With the lower guest fees and no extra fees displayed on listings, more guests will be enthusiastic to book which means that your bookings are more probably to increase arsenic well as precaution your net income with the increased rates .

  1. Airbnb SEO ranking

Do you know ? aside from more potential guests booking your property, you besides endorse a simpleton and better guest experience, making you unique from other listings .
consequently, improve your Airbnb SEO rank by barely adopting the new structure fee by offering more respect to guests .


  1. Location

In some countries, hosts are not required to switch to Airbnb ’ s new structure fee which consequently prices of their list will appear cheaper at the beginning glance which is considered a major precipitation to other hosts .

  1. Price

master of ceremonies fees will go up in monetary value and may see switching to Airbnb ’ s new fee structure as a room to force hosts to list entirely with Airbnb .

How Do I Get Ready For This?

  1. Add your VAT Number

Take note, Airbnb will not withhold any VAT on host fees if you ensure to add your VAT data to Airbnb .

  1. Switch now

By switching now, the master of ceremonies will adopt an early host service fee of 14 % cashbox December 6th, 2021. however, after the 7th December 2021, the host servicing fee will switch to 15 %. More of, early on switch over will give you access to benefits such as improved guest visibility and competitive price .

  1. Adjust your rates

It is crucial to adjust your fees through your Software Provider as a large summarize of the service tip will be deducted from your payouts. Doing then will ensure your profits are not affected but do keep in mind that before adjusting your monetary value to stay competitive.

What is the easy way to update your rates?
Adjusting price to each and every available date to any number of listings may seem daunting specially when increasing the rates by 15.53 %. however, if you are already using a channel coach, get in equal with them with regards to adding a price increase for your Airbnb by plainly updating the prices and if not, do recommend getting one like Hostaway !
just having a channel director will save you the measure of time spent on business operations and help you focus more on other aspects of the occupation such as ensuring an especial guest have .

source :
Category : Finance

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