Airbnb’s New 18.43 Percent Host Fee Explained: What Florida Property Owners Need to Know in 2025

The short term rental industry is shifting again, and one update is raising questions for property owners across Florida. Airbnb has officially moved PMS-connected hosts to a standardized 18.43 percent host-only fee. At first glance, this looks like a major cost increase. Many owners worry they will take home less money or become less competitive. Yet the reality is more nuanced. With the correct pricing strategy, your payout does not need to drop at all.

At Stay Coastal Hospitality, we manage properties along Florida’s coast and work with owners who ask the same questions every week. Why is Airbnb changing fees? Will this reduce my earnings? How do I adjust my prices? Will guests notice the difference? This guide breaks down the new fee structure, explains how it affects your revenue and shows how a professional management team protects your profit margin.

This is the kind of industry change that creates confusion for many owners. Our goal is to keep you informed so your property stays profitable, competitive and well positioned for 2025 and beyond.

What Changed: A Shift From Split Fee to Host-Only Fee

For years, Airbnb used a split-fee system. Hosts paid a small 3 percent fee and guests paid a separate service fee. This model often confused guests at checkout, but it protected host payouts. That system is now being phased out for all PMS-connected hosts.

Here is what the update means in practice:

• Airbnb now takes 18.43 percent from the host side

• Guests no longer pay a separate service fee

• The fee applies to the entire booking subtotal including nightly rate, cleaning fee and extra guest fees

• PMS-connected hosts cannot opt out

• Rates must be adjusted to keep payouts level

This shift has been happening gradually in Europe and non US markets for years. Now it is being standardized in the United States, and property owners need to understand how to adapt.

If you manage your listing manually without a PMS, you may still be on the split-fee system. However, most professional or semi-professional hosts will be affected by the 18.43 percent host-only model.

This change can feel overwhelming at first glance. Yet the solution is simple once you understand the math behind Airbnb’s new fee.

How to Update Your Rates the Right Way

If you want to maintain your profit margin, you’ll need to update your prices to account for Airbnb’s higher distribution cost. The goal: keep your payout the same even though Airbnb’s host fee has increased.

Formula:
New Price = Old Price × (0.97 / 0.845)

• 0.97 = host payout under the old 3% split-fee model

• 0.845 = host payout under the new 15.5% host-only fee

Or, more simply:
New Price = Old Price × 1.1479

To keep your payout whole, increase all host-charged amounts (nightly rate, cleaning fee, extra guest fees, and any other add-ons like linen or management fees) by about 14.8%.

If your PMS uses fixed markups, you’ll need to adjust those as well. Markups that used to sit around ~3% under split-fee pricing now need to be closer to 18.34%. That’s what ensures Airbnb takes its 15.5% cut from the gross price without reducing your actual payout.

Prefer to keep the guest’s total price the same as before?
In that case, the necessary adjustment is slightly lower, roughly 14.1%.

Example

• Old nightly rate: $100

• New nightly rate: $114.79

• Airbnb fee (15.5%): $17.79

• Your payout: $97 (exactly what you earned before)

This adjustment protects your margin, even with Airbnb’s higher distribution cost.

If instead you optimize for the same guest-facing price, your updated nightly rate would be around $114.10 (≈14.1% increase), but your payout would end up a bit lower than before.

What This Means for Hosts & Property Managers

Markups vs. Fees — Don’t Mix Them Up

• Airbnb host fee: 15.5% (deducted from the gross price)

• Your PMS markup: must be around 18.34% (applied to the base rate)

The markup needs to be higher than the fee because Airbnb takes its percentage from the final, increased price, not the original base rate.

Will Higher Prices Make Your Listing Less Competitive?

Many owners hesitate to raise prices because they fear losing bookings. This was a valid concern years ago when Airbnb displayed service fees separately. Guests would see a low nightly rate, then get hit with extra charges at checkout.

In 2025, Airbnb displays a single total price in search results. Guests do not see how fees are divided between host and platform. They only see the final number.

This means your competitiveness no longer depends on whether you are on split-fee or host-only. It depends on:

• Your total displayed price

• Your listing’s visual appeal

• Guest experience quality

• Your response time

• Your reviews

• How well your listing is optimized

A high-performing listing can maintain or even increase earnings after pricing adjustments. The biggest risk comes from inaccurate pricing, not higher pricing.

Because Stay Coastal manages dynamic pricing daily using Wheelhouse, we prevent underpricing and overpricing. This ensures you do not lose bookings due to incorrect rates and do not lose revenue due to Airbnb’s increased fee.

Why This Fee Change Matters for Florida Property Owners

Florida is one of the most competitive and seasonal short term rental markets in the United States. Areas like Daytona Beach, Ormond Beach, New Smyrna and Palm Coast experience:

• Seasonal fluctuations

• Event-driven pricing spikes

• High demand for direct bookings

• Strong competition across Airbnb, Vrbo and Booking

• Short booking windows during peak periods

When Airbnb changes its fee model, it affects your rate strategy across all platforms, not just Airbnb. An 18.96 percent increase may seem simple. Yet dynamic pricing, occupancy trends and market swings require a more nuanced approach.

This is where professional management becomes essential. Without it, owners risk:

• Lower profitability due to outdated pricing

• Incorrect cleaning fee adjustments

• Loss of competitiveness on OTA platforms

• Unpredictable monthly revenue

• Missed seasonal opportunities

Stay Coastal Hospitality monitors market data, event calendars and competitor pricing to ensure your rate is always optimized for the current landscape.

How Stay Coastal Hospitality Protects Your Earnings

Professional management is no longer optional for owners who want to stay profitable in a changing industry. Airbnb’s new fee model is one example of a broader pattern. Platforms are adjusting their business models. Owners who try to handle everything alone are often caught off guard.

Here is how we ensure your property stays competitive and profitable.

1. We update every OTA pricing structure for you

Airbnb charges 18.43 percent
Vrbo charges about 8 percent
Booking commonly ranges from 15 to 20 percent

These differences require channel-specific pricing. We manage and monitor this daily.

2. We use dynamic pricing tools and market data

Our pricing adjusts with:

• Local demand

• Events and holidays

• Competitor occupancy

• Weather and tourism trends

• Day-of-week patterns

• Lead time behavior

Using Wheelhouse, we stay ahead of the market rather than react to it.

3. We protect your guest experience

Fast communication, clear instructions and smooth operations directly influence your ranking. A higher ranking leads to more bookings. Guests do not see your management structure, but they feel the difference.

4. We optimize cleaning fees and extras

Most owners forget that Airbnb takes 18.43 percent from cleaning fees too. We adjust these accurately so you can cover real operational costs without reducing your payout.

5. We keep you competitive in search results

Since Airbnb now shows total price only, we optimize your final number, not just your nightly rate.

What Owners Should Do Right Now

If you want to maintain or improve your earnings under Airbnb’s new fee structure, take these steps:

• Review your current nightly and cleaning rates

• Increase rates by approximately 18.96 percent if you have not already

• Check whether your PMS is calculating OTA markups correctly

• Review your listing’s competitiveness in your local market

• Consider a full audit of your pricing strategy

For owners using platforms like Hostfully, verifying that OTA pricing rules are configured correctly is essential for accuracy.

Stay Coastal Hospitality completes all of this on your behalf. You do not need to manage formulas, updates or channel adjustments. Your time is freed, your listing is optimized and your revenue remains protected.

Final Takeaway

Airbnb’s move to an 18.43 percent host-only fee may seem like a major change, but your profit margin does not need to decline. With the correct pricing adjustments, professional revenue management and a strong understanding of OTA fee structures, your payout can remain exactly the same.

Property owners who are prepared will stay competitive. Owners who try to navigate all of this alone will face challenges with profitability, pricing accuracy and operational consistency.

Stay Coastal Hospitality is here to guide you through every change in the industry and protect your earnings with a data-driven, proactive approach. Your investment deserves expert care, consistent revenue and a management team that works with precision.