Learn how Airbnb fee structure changes affect Hostaway-connected listings, which property types may move to host-only fees, and what pricing adjustments to review after connection.
📋 What's Happening?
Airbnb is implementing a major change to its fee structure for all hosts using property management software (PMS) like Hostaway. Starting October 27, 2025, all PMS-connected properties will automatically switch to a 15.5% host service fee structure.
🔍 Key Details
Timeline
- Now - October 26: Early adopters can switch manually and pay 15% instead of 15.5%
- October 27, 2025: Automatic transition to 15.5% for all PMS-connected hosts
- New hosts (created after August 25, 2025): Automatically get a 15.5% fee regardless of PMS connection
Who's Affected
✅ ALL Hostaway clients with Airbnb connections (unless already on host-only fees)
✅ Properties labeled as hotels that were already paying 15% (now increases to 15.5%)
✅ Traditional hospitality listings (hotels, serviced apartments, etc.)
What Changes
The markup percentage needed varies based on your previous pricing strategy. Ensure you calculate the appropriate markup for your specific situation to maintain your desired revenue levels.
- Before: Host pays ~3%, guest pays ~14-16% service fee
- After: Host pays 15.5%, guest pays no separate service fee
Understanding the Markup Calculation
To fully offset the new 15.5% service fee, the required channel-specific markup percentage depends on your previous fee structure:
- If you were previously offsetting the 3% commission, apply an 18.34% markup to maintain your current revenue
- If you were NOT previously offsetting the 3% commission, a 14.3% markup is sufficient
Markup Calculation Formula
You can calculate the required markup percentage using this formula:
(100 / (1 - OTA service fee)) - 100
Critical Considerations
- Markup applies to nightly rates only - All other fees (cleaning fees, management fees, etc.) will still be subject to the 15.5% commission
- Consider restructuring your fee strategy by converting certain fees (such as cleaning fees) into adjustable management fees that can be customized per channel to better offset the service fee
⚠️ Critical Actions Required
1. 📈 Adjust Your Pricing (Markup)
Add an 18.34% markup to your Airbnb properties to maintain current revenue.
How to set markup in Hostaway:
- Go to Listings → Edit
- Click on Price & Fees
- Enter 18.34% markup for Airbnb
- Save
How to bulk update for multiple listings:
- Select Copy to other listings
- Check the Airbnb listing markup and click Next
- Click Select all listings, then Next
- Click Save & Export
2. 🔄 Switch to Single Service Fee NOW
Immediately switch in your Airbnb host account to prevent pricing issues:
- Log in to your Airbnb account
- Go to Account → Payments & payouts → Service Fee
- Switch to a single service fee structure
Why switch early? If you don't switch now but add the markup, your properties will show inflated pricing (accounting for both guest + host fees) until October 27, potentially filtering you out of search results.
💡 Understanding the Impact
Revenue Example
- Today: You set $100, earn $97, guest pays ~$115
- With the new structure, you set $115, earn $97.18, and the guest pays $115
Benefits of the Change
- Simplified pricing for guests (no separate service fee)
- Better search ranking potential
- Competitive pricing across channels
- More control over what guests actually pay
🛠️ Technical Implementation
Markup Setup Options
Option 1: Individual Listing
- Go to Channel Manager → Settings → Enter markup → Save
Option 2: Bulk Update
- Listings → Price & Fees → Enter markup → Use clipboard icon → Select target listings
Option 3: From Calendar
- Calendar → Select date → Pricing → Show prices per channel → Adjust markup
Important Notes
- Markup applies only to the base/nightly rate
- Consider adjusting cleaning fees accordingly
- Markup can be negative if needed
- Settings need to be configured per listing
🚫 What This Is NOT
❌ Not an additional cost - this fee structure has always existed, just moving from guest-side to host-side
❌ Not a Hostaway fee - this is purely an Airbnb policy change
❌ Not optional - mandatory for all PMS-connected hosts
Remember: Guests will pay approximately the same total amount; the fee is simply being collected differently for transparency and simplicity.