Airbnb Bookkeeping

Airbnb’s Move Towards Host-Only Fees and How This Affects Hosts

Why read this article?

For Airbnb hosts and property managers who use property management software and operate most of their listings outside the United States, Airbnb is shifting away from the split-fee pricing model and moving toward what it calls a “simplified fee structure.” For hosts within the United States, this may offer a preview of what could eventually be implemented.

Airbnb announced that it will deduct a flat 15.5% host service fee from each payout for hosts who use property management software. This change replaces the previous model in which the fee was shared between the host and the guest.

(If you haven’t already, be sure to check our comprehensive guide to Airbnb Accounting & Bookkeeping)

Who this affects

Phase-In Timeline:

  • PMS-connected hosts: Switched to the 15.5% model on October 27, 2025 (source)
  • Non-PMS hosts: Will be moved to the same structure on December 1, 2025, meaning all hosts will ultimately pay the same rate (source).​

Under the old split-fee model, hosts paid about 3 percent while guests paid 14 to 16 percent. With the Host-Only Fee model, guests now see a simpler, all-in listed price with no service fee added at checkout.

The Host-Only Fee model has become standard for most hosts worldwide, except for certain hotel-type listings under specific contracts and, previously, hosts in a few countries. As of late 2025, nearly all hosts will be using this structure.

Benefits of Host-Only Fees

According to Simona Zudyte from Airbnb, hosts who have already adopted this fee structure have seen an average 17 percent increase in bookings, noting that listings using this model are “more appealing to guests.”

In addition, if you manage the same listings across multiple channels, this fee structure makes it easier to maintain consistent pricing on different platforms. It also simplifies communication when price changes occur due to reservation adjustments or refunds.

With this model, you will also have a clear understanding of exactly what guests see when they pay for their reservation.

What does this mean for VAT

Hosts must ensure that their VAT registration number is entered in their Airbnb account. To do this, log in to Airbnb, go to your host account settings, and enter your VAT registration number under the Taxes section.

Adapting to the Host-Only Fee

  • Revenue and Pricing: Because the host now absorbs the entire fee (15.5% off the gross price) hosts must increase their pricing by approximately 18.34% to keep net earnings the same as under the split-fee model.
  • Transparency for Guests: Guests only see the total “all-in” price, enhancing transparency and potentially boosting bookings.
  • Preparation: Hosts are encouraged to review their pricing to offset this higher fee, or risk a significant drop in net nightly payouts.

When you adopt the Host-Only Fee model, your overall pricing will change, and you may need to adjust your rates to account for the added cost. It is important to review all of your listing prices to make sure you are not unintentionally underpricing your units.

If you are a property manager who lists properties on behalf of clients and you switch to this new fee structure, you will likely need to discuss the change with them. Make sure they understand how the fee is defined, how it will affect total income, and who will be responsible for bearing the increased host fees charged by Airbnb.

Fee ModelHost FeeGuest FeeGuest Sees
Split-Fee (Old)~3%14–16%Lower host price, fee at checkout.
Host-Only Fee15.5%0%One “all-in” price.

What this means for accounting?

When the Host-Only Fee model comes into play, it becomes even more important to track host service fees for deductions since these deductions will be five times greater. Plus, Airbnb may not subtract these fees from reported host earnings (see Airbnb’s 1099-K Filings for US Hosts for example).

Therefore, we highly recommend hosts to record their income with a well known accounting system like QuickBooks Online and use Tallybreeze to perfectly track their host fees for each reservation. This way the precise deductions can be made.

Tallybreeze

Software professional, data wrangler, family man. Jason is a Co-Founder and Head of Product @ Tallybreeze. He’s worked for major global tech companies including Amazon, Hewlett-Packard and Intel Corporation with several issued patents in the digital product space. Computer Science background and establisher of several profitable grassroots ventures in Silicon Valley. He’s into practical zen, the flow state, high-tech and the hustle.

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