Airbnb hosting can be a rewarding and lucrative experience, especially considering that over 150 million people use the platform to book short-term stays worldwide.
Yet, to truly succeed as an Airbnb host and maximize your revenue, it’s essential to understand Airbnb’s host fees—a percentage of the total reservation cost hosts must pay for listing on the OTA platform.
The percentage typically falls between 5% and 15% of the total reservation cost, but it will vary depending on the location of your listings, the fee structure you choose, and a few other factors. Simply put, understanding Airbnb fees for hosts can directly impact your profitability.
But exactly what percentage does Airbnb take? Here’s what kind of Airbnb fee you can expect to pay and how to calculate the total as part of effectively pricing your listings.
Don’t see the form to download the Airbnb Host Guide? Click here.
Disclaimer: Lodgify is an Airbnb Preferred Software Partner. This post, including any claims or statements within, is solely from Lodgify and is not endorsed by, directly affiliated with, authorized, or sponsored by Airbnb in any way.
What are Airbnb host fees?
Airbnb fees for hosts are the charges hosts incur for using Airbnb’s platform to list and rent out their properties. With every booking, these fees are subtracted from the host’s earnings.
While that might sound straightforward, it’s usually anything but. Airbnb host fees vary greatly depending on the booking and your fee structure.
And if you’re thinking of becoming an Airbnb Luxe or Airbnb Plus host, be prepared to pay a little differently (i.e., more).
What percentage does Airbnb take?
Like anything in the vacation rental world, the answer isn’t so simple.
Most hosts are subject to a standard 3% service fee based on the total booking amount. However, Airbnb offers several fee structures, meaning you can choose the one that best suits your needs as a host.
Geography plays a substantial role in the Airbnb host fee equation, too. And if, like many savvy hosts, your property is connected to an Airbnb channel manager such as Lodgify, you might have to choose different fee structures—the split-fee model doesn’t always apply to these listings (but more on that below).
As if that’s not enough, Airbnb also factors in your cancellation policy when crunching the numbers for your host service fee. If you maintain a strict cancellation policy, expect your fee to run approximately 2% higher than for those with more flexible policies.
How much does it cost to list on Airbnb?
Listing your property on Airbnb is entirely free. There are no upfront charges to create and publish your listing on the platform.
You can craft a compelling listing, add photos, describe your property, and set your rates without incurring any initial expenses.
You will only incur fees once you start to accept bookings.
Service fees: How much does Airbnb take in 2024?
Airbnb service fees are calculated as a percentage of the total reservation cost, incorporating the nightly rate and potential additional fees like cleaning fees. The percentage typically falls between 5% and 15% of the total reservation cost.
While service fees differ for each OTA, Airbnb host fees can be broadly categorized into the Split fee and the Host-Only fee.
Split fee
The Split fee structure is the most common, as it shares the cost between hosts and guests. Here’s how it works.
How much does Airbnb charge hosts?
- This fee amounts to 3% of the booking subtotal for most hosts. However, it’s essential to note that there are exceptions to this rule. Some hosts may incur a slightly higher fee, especially if they fall into specific categories. For instance, hosts with listings in Italy and those who have opted for Super Strict cancellation policies may pay more.
- This fee is calculated based on the booking subtotal, which includes the nightly rate, cleaning fees, and any additional guest fees (if applicable). It does not include any taxes.
- The host fee is automatically deducted from the host payout.
How much does Airbnb charge guests?
- The guest service fee usually amounts to 14.2% of the booking subtotal. This fee is calculated based on the same criteria as the host fee: the booking subtotal, which includes the nightly rate, cleaning fees, and additional guest fees (if applicable).
- The actual percentage may vary based on various factors, but as a guest, you’ll see it itemized during the checkout process before you confirm your booking.
- Airbnb applies a reduced guest service fee for stays extending beyond three months, offering even more savings for extended guests.
- Airbnb has also announced recent updates to its guest fee for cross-currency bookings, but more on that in a bit.
💡 What percent does Airbnb take? An example…
Let’s say you’re an Airbnb host with a nightly rate of $150 plus a $50 cleaning fee.
Assuming you’ve chosen the Split fee structure and a guest books your listing for just one night, Airbnb would take 3% of the booking subtotal for your host fee—that’s $6. So, you would make $194 for that one night.
They would also charge your guest 14.2% of the booking subtotal as a service fee—that’s $28.40. The guest would pay $228.40 plus applicable taxes.
Host-Only fee
The Host-Only fee is a more straightforward fee structure where the host pays it in full instead of having guests cover a portion of the commission.
- It’s typically in the range of 14-16%, but there are exceptions based on factors like your cancellation policy and the duration of stay.
- Hosts with Super Strict cancellation policies may incur slightly higher fees, while those offering monthly stays may enjoy reduced rates.
- Choosing the Host-Only fee structure is mandatory for traditional hospitality listings, including hotels and serviced apartments.
Airbnb fees for hosts using a channel manager or iCal
The Host-Only fee structure is also mandatory for software-connected hosts. It’s called Simplified Pricing and was introduced in December 2020.
Hosts who use a property management system (such as, you guessed it—Lodgify) to help them manage and grow their businesses have no choice but to choose Simplified Pricing, a set 15% fee of the booking subtotal.
However, if you’re a host using vacation rental software and the majority of your listings are located in either the U.S., Canada, the Bahamas, Mexico, Argentina, Taiwan, or Uruguay, you can head to your account settings and choose between Host-Only or Split-fee.
2024 updates to Airbnb fees for guests
Starting April 1, 2024, Airbnb is implementing a key change for hosts using the split-fee model: an extra guest fee of up to 2% for bookings made in a different currency than the host’s chosen one.
Just in case it isn’t clear—this fee is passed onto guests, not hosts. However, this could mean international guests will have to pay an Airbnb guest service fee of up to 16.2% for international bookings.
It’s important for vacation rental managers and hosts to understand this change, as it could affect international booking trends and thereby force you to reconsider your pricing strategy. The changes do not impact those operating under Airbnb’s Host-Only Fee model.
Additional costs on Airbnb
Beyond the standard Airbnb host fees, property owners and managers might find themselves juggling a host (excuse the pun!) of other Airbnb fees, including the following.
VAT fees
Airbnb is legally obligated to apply VAT to its service fees for your reservations in countries where electronically supplied services are taxable. This will depend on your country of residence or the location of your listing.
The VAT is applied to the host service fee for a booking. Depending on where you reside or where your listing is located, you might have to apply VAT (or other taxes like occupancy taxes) on the accommodation or experience services you offer to guests.
Ultimately, it’s best to consult a tax advisor for personalized assistance.
Airbnb Plus host fees
Previously, for a one-time fee of $149 (and an additional 16% service fee), extraordinary hosts and truly unique properties could qualify for Airbnb Plus. However, as of November 2023, the Airbnb Plus program has ended.
Cleaning costs
Hosts don’t cover cleaning costs; guests pay cleaning fees. However, as a host, it’s your responsibility to add a cleaning fee to your listing and ensure it covers the actual costs of cleaning.
If you’re unsure how to set your prices strategically, you can use Airbnb’s dynamic pricing tool. Or, if you’re using Lodgify’s channel manager, connect Lodgify Dynamic Pricing, a tool that strategically adjusts your vacation rental rates based on hundreds of factors, including demand, seasonality, and days of the week.
Co-host payments
Hosts can share reservations with co-hosts and decide on the split as a percentage or a fixed amount per reservation.
Cancellation fees
Airbnb’s host cancellation policy aims to minimize disruption to guests in the event of hosts’ cancellations.
If a host cancels a confirmed reservation, a cancellation fee is applied. The actual fee charged to hosts for cancellation varies based on the timing of the cancellation concerning the arrival date.
As of October 2023, these are the current Airbnb host cancellation fees:
- Less than 48 hours before or after arrival time: 50% of the total amount of the remaining nights.
- Between 30 days and 48 hours before arrival: 25% of the total amount of the reservation.
- More than 30 days before arrival: 10% of the total amount of the reservation.
The fee includes the base rate, cleaning fee, and any pet fees but does not include taxes or guest fees. Fees are generally withheld from future payments to the host.
Note that in exceptional situations, cancellation fees may be waived.
Other costs
Outside of any Airbnb costs, there are some additional charges you may have to pay as either a host or guest. These costs will depend on factors such as your bank, where you’re located, and which currency you are converting, but it’s good to be aware of them—just in case. Contact your bank directly if you have any questions about those fees.
Why is it important to understand how much Airbnb charges owners?
As an owner or property manager, understanding the various costs associated with listing your property on Airbnb provides a clear financial perspective for your vacation rental business.
By accounting for expenses like Airbnb commissions and cleaning costs, you can create a more accurate budget and better understand your financial bottom line.
With that financial insight, you can learn how to set competitive rates that cover your costs effectively, helping you optimize your vacation rental business to be more efficient and profitable.
How do I avoid paying Airbnb commission fees?
While bypassing Airbnb host fees altogether is impossible, you can explore alternatives to diversify your booking channels using platforms with different fee structures.
Using a vacation rental website builder to create your own website allows you to accept direct bookings, avoiding service fees imposed by online booking platforms like Airbnb.
With Lodgify, for example, you can create a stylish, direct booking website in a few simple steps with no technical experience necessary. Or, if you have your own website already built, you can simply connect the booking widget to accept direct bookings with ease.
Connect your website to Airbnb with Lodgify
Lodgify’s Airbnb channel manager is an invaluable tool for hosts seeking to streamline their property management across multiple booking platforms, including Airbnb, Vrbo, Booking.com, and their own direct website.
With its intuitive interface and powerful automation features, hosts can effortlessly synchronize their property listings, calendars, and rates across all platforms, reducing the risk of double bookings and saving precious time.
Moreover, the real-time updates ensure that your property is consistently displayed with accurate information, enhancing your online reputation and guest satisfaction. Try it for free now to see just how much time, effort, and stress you could save!
Avoid Airbnb fees for owners
To grow your vacation rental business on Airbnb, it’s essential to understand the costs associated with accepting bookings on the popular platform. Doing so allows you to establish competitive rates while covering your expenses.
Ensure you understand which payment model applies to your listings on the platform, whether it’s the Split fee, Host-Only fee, or Simplified Pricing. Once you understand the total cost of Airbnb host fees, including what percentage Airbnb will take out of your final payment, explore different booking options to maximize your business.
Diversifying your channels with your own website and using Airbnb management software for other vacation rental platforms can help you showcase your properties to an even wider audience. This way, you can make the most of your vacation rental business and thrive as a host, whether on Airbnb or elsewhere, like Lodgify.
Don’t see the form to download the Airbnb Host Guide? Click here.
