What a 15.5% Airbnb host-only fee means for you

New Airbnb fees for hosts

Airbnb recently confirmed that the split fee model is ending for property management system (PMS)-connected hosts. From October 27th, 2025, any property manager using a connected system will pay a 15.5% Airbnb host-only fee. 

This is a significant update for hosts worldwide. So what does this mean for your earnings? Let’s take a closer look. 

Understanding Airbnb’s fees for hosts 

Airbnb has always charged fees to cover platform services. These are known as Airbnb host fees or Airbnb hosting fees. Until now, two main models were in play:

• Airbnb split fee model

In this setup, hosts paid about 3% of the booking, while guests paid 14% to 16% on top. The benefit for hosts was a small cost, but the downside was that guests saw a much higher total at checkout.

• Airbnb host-only fee (simplified pricing)

Here, the host covers the entire cost. Guests don’t see an extra service fee, just one total price. This approach has been rolling out since 2020 in some markets and is now being standardised at 15.5%.

The move to Airbnb simplified pricing is part of a broader strategy: Airbnb wants to make prices clearer for guests. With split fees, guests often abandoned bookings when service charges appeared late in the process. Now, the platform shows one upfront price, which should improve booking conversions.

This change in fee structure doesn’t have to reduce earnings, as long as nightly rates are adjusted accordingly.

What this change means for Australian hosts

If you confirmed a booking before 27th October 2025, don’t worry, it will still follow the split fee model. Even if you or your guest makes changes to the booking after that date, the original fees will apply.

So, for any reservation confirmed before 27th October 2025 (even if the stay happens afterwards), you’ll continue to be charged under the fee structure that was in place when the booking was first made.

For Australian hosts working with Hometime, the impact is small. PMS-connected accounts have already been on the host-only fee for years.

The recent change is simply a shift from 15% to a 15.5% Airbnb host-fee percentage. That’s an increase of just 0.5%. In practical terms, it’s not enough to affect your overall returns when pricing is managed correctly.

But for self-managing hosts who were still on split fees, the jump is far larger. Going from paying 3% as a host to 15.5% is a noticeable shift. If these hosts don’t adjust their nightly rates, they will see a lower payout per booking.

This is why many property owners are concerned right now. And it’s also why professional management, such as Hometime, makes a difference.

Why self-managing hosts will feel the difference

Many homeowners assume that if Airbnb charges more, they simply earn less.

Here’s why that’s not the case.

Let’s say you used to set your nightly rate at $100.

• Split fee model: Airbnb deducted 3%, so you earned $97. The guest, however, paid closer to $114 after their fee.
• Host-only fee model: If you keep your rate at $100, Airbnb deducts 15.5%, leaving you with $84.50. The guest pays $100.

At first glance, it looks like you’ve lost money. But if you simply raise your nightly rate so that the guest pays about the same as they did before, your payout balances out. In this case, you’d increase the rate from $100 to about $114.50. After Airbnb takes 15.5%, you still earn $97.

The problem is that many self-managing hosts don’t make this adjustment. Or if they do, they apply the wrong markup. As a result, they risk either underpricing and losing income or overpricing and losing bookings.

That’s where Hometime’s specialised revenue management team makes a real difference.

How Hometime is handling Airbnb’s new fee

For Hometime homeowners, this isn’t new territory. Our PMS connections have used the host-only fee for years. This means the recent change, a 0.5% increase, is minor.

And Hometime doesn’t just set and forget rates. We constantly review local demand, competitor pricing, and seasonal patterns. The 15.5% host-only fee is simply one factor in a much broader pricing strategy.

As Dale from our revenue team puts it, “We’ll continue to manage pricing according to market demand to deliver the best returns to homeowners despite this minor fee change. The increase is small, and Hometime is experienced in managing differing fee structures across multiple platforms.”

The takeaway: Hometime homeowners don’t need to do anything. The change is already managed in the background.

Dynamic pricing in practice

So how does this work in practice?

Our revenue team uses a combination of data-driven tools and years of valuable internal data that track market conditions in real time. This includes:

• seasonal demand (school holidays, festivals, local events),
• competitor listings in your area,
• occupancy trends and booking windows, 
• unique property features, and
• changes in platform policies, such as the Airbnb fee for hosts.

Based on this data, we adjust nightly rates to provide you with the best returns. Cleaning fees, extra guest charges, and other line items are also considered, because Airbnb applies its 15.5% to the entire booking subtotal.

The result is simple: Hometime homeowners earn strong returns without needing to calculate markups or worry about platform changes.

What hosts should focus on instead

It’s natural to focus on fees, but in practice, they’re only one part of the equation. What really drives your income is occupancy and guest demand.

Since April 2025, Airbnb has been showing guests the total price (before taxes) upfront. That means competitiveness is about the final figure, not how the fee is split. Guests no longer compare “service fee” vs “no service fee.” They simply see a price they can say yes or no to.

For hosts, this means:

• keeping nightly rates competitive,
• offering excellent value through optimised listings,
• maintaining strong reviews from happy guests, and
• adjusting quickly to demand shifts.

Hometime’s role is to manage all of these factors. We look at the full picture, not just the Airbnb host fee percentage, to make sure homeowners earn the best possible return.

Partner with Hometime to protect your earnings

Instead of worrying about fee calculations, you can focus on the benefits of hosting, while we handle the numbers and the rest. By choosing Hometime, you can collaborate with a local host to style your property, optimise your listing and drive positive guest reviews.

At Hometime, we provide:

• expert revenue management,
• hotel-quality cleaning,
• professional photography and property styling,
• transparent fee handling across multiple booking platforms,
• guest communication and support, and
• listing optimisation to maximise visibility and bookings.

If you’re a self-managing host worried about how Airbnb’s fees affect your earnings, now is the time to consider professional property management.

Book a free earnings estimate with Hometime and see how much your property could generate with the right strategy. If you’re still on the fence about outsourcing to a property manager, read our blog on the 10 signs you need an Airbnb manager and how Hometime compares to local Airbnb agents.