Industry experts weigh in on Airbnb's commission hike

Airbnb has begun standardising a 15.5% host-only commission for most listings, replacing the long-standing split-fee model where hosts paid about 3% and guests covered a separate service fee. The shift starts with PMS-connected accounts and is rolling out more broadly, with Brazil set at 16%. For many professional managers – especially in the US – this represents a material change to unit economics and pricing workflows.

Reactions across the industry are mixed: some argue it will simplify pricing for guests and improve conversion; others say it effectively pushes more cost onto managers, forcing price increases just to maintain margins. Trade press and vendor briefings are already advising hosts to model the impact and adjust nightly rates and cleaning fees accordingly to keep payouts flat under the new fee. We invited two industry experts, Host Planet Columnists Richard Vaughton and Cristiana Carpini, to unpack what the change signals – and what hosts and property managers should do next.

What do you make of Airbnb's decision to raise host commission to 15.5% across the board?

Richard Vaughton: I was expecting many of these changes in 2024, but it's clear they are cautious about major commission step fee changes. In April last year, Airbnb began charging an additional 1% traveller service fee (on average) for cross-currency bookings. We have also seen changes to the cancellation terms this year and the introduction of "Reserve Now, Pay Later" policies. Brazil also received a 1% hike.

With a static share price and a revamp of the PR narrative on experiences and the "we keep it all" services to keep shareholders buoyant, something had to happen. Hotels? Let's see how hosts react to that. Yes, Airbnb is profitable, but the S-curve needs to show momentum, and it's hard to know where that momentum is coming from without acquisitions. These recent changes may be funding some of the future direction.

There are many questions surrounding whether a single fee is better, and why software-connected systems were pushed down this pipeline in Europe years ago, while the US is only seeing pressure later. Presumably, this is due to the desire for host exclusivity and the US being its single biggest market. Give hosts some software, and they can immediately access VRBO, Booking.com, and a raft of other channels. The single-fee approach is well-known for better conversions, and this is a stepping stone to further improvements. Airbnb is aware that software is entering the market at all levels. If a single fee adds 10% more booking volume on individual software-connected hosts in the US, as expected, then guest fees will be a thing of the past very quickly.

As an overall strategy, I anticipate several additional actions and a standard pricing playbook approach, including tiered pricing opportunities, increased commissions, further adjustments to cancellation policies in 2026, and a greater focus on Airbnb Co-Hosts, with additional internal software benefits. Increasing the size of a co-host leads to channel dilution; however, they need to keep them small and loyal, but voluminous in number, and avoid competing with each other and becoming managers with extensive inventories.

Airbnb also recognises that AI is changing search, and many managers may see a loss of organic traction and seek increased distribution. However, Booking.com also appears to be doubling down on alternative inventory and is experiencing fast booking growth in many places.

The net outcome is price commission parity across the industry, which means software, pricing, and ranking tools for managers. Then there is Google Vacation Rentals.

Cristiana Carpini: Airbnb is shifting more of the commission burden onto property managers, squeezing margins in an industry already strained by rising costs and tighter regulations. We are used to high commissions with Booking.com, but at least they remain open to dialogue with property managers and hosts. Airbnb’s move, on the other hand, sets a precedent where OTAs can push further, knowing hosts and property managers are often too dependent to push back.

Two messages are clear:

• Airbnb is not your business partner; it’s a business in its own right.

• Its focus is on growing bookings by appealing to guests, not on protecting your margins.

How can hosts and property managers deal with this change?

RV: Hosts will simply have to swallow it and raise their prices to cover the fees if they are so inclined – and this is a smart move by Airbnb, knowing it could be a can't be bothered approach by a host, so no damage to guest prices and more margin to them.

Managers are a totally different equation, and I'll leave the practical dynamics to the revenue managers (including VAT implications). However, managers have owners, who also need to be informed, and this is another cost burden. With a manager of 100 properties, with a gross booking value of £3 million – if all bookings were with Airbnb, that's £15,000 and a part-time staff member or some software fees for a year. Even 30% of that will hurt businesses on increasingly thin margins, and this is likely just the beginning. Airbnb may have been better off simply raising the commission on PMS-connected inventory a lot higher than just firing another warning shot.

Adding cancellation changes, their jobs are becoming increasingly complex. These companies may be small in terms of account numbers compared to Airbnb’s individual hosts, but large in volume, and they book 24/7/365. They are thinking very hard about their 2026 strategies, which include de-risking, innovative price management, and a multi-pronged approach.

CC: Don’t rush into a frenzy of price increases! This summer we’ve seen in many countries ADRs slip back to 2018–2019 levels. Raising rates without improving quality (both in accommodation and services) is essentially planning assisted suicide.

What to do instead?

• Remember: individual hosts with low overheads won’t leave Airbnb, but professional managers must start diversifying. Direct bookings and multi-channel strategies are no longer optional.

• Take this as the push you needed to review your portfolio: cut out the £40 per night units that drain resources, and focus on higher-quality homes and services that can justify your pricing in the face of rising commissions.

What next for Airbnb and other OTAs?

RV: These are profitable companies, and doubling down on cost savings with AI and increasing investment in guest acquisition. They aren't going away, and history shows that the strong survive, so we are looking at an Airbnb vs. Booking.com battle for alternative accommodations. 

It only takes Booking to improve its hotel software approach and, to a degree, its guest vetting, and Airbnb will lose market share and exclusive inventory. Airbnb may try to double down to a degree on exclusive host love, but that ship has sailed. Their brand success has also been their key destination's Achilles heel, while Booking watches on.

We can expect a raft of AI tools offering to do that guest work on research and eventually booking, and one of the OTAs will buy the product or skilled teams to develop and roll it out into your phone (a Booking playbook). 

Or Airbnb ($79 billion cap and $11 billion cash) bites the bullet and bids for Expedia ($27 billion cap). There's a thought.

Meanwhile, all hosts and managers are advised to take heed of these warning shots. De-risk, educate on software use, AI, and develop your hyperlocal brands!

CC: If Airbnb doubles down, professional managers will likely reduce their inventory or shift their best units to platforms with fairer economics. That creates an opportunity for Booking.com and Vrbo to reposition themselves as more property manager-friendly partners.

For Airbnb, the long-term risk is clear: alienating the very professional supply that allowed them to scale, and being left with a base of individual hosts who will accept whatever terms are imposed.