Want to outperform the market?
Freewyld Foundry’s Revenue & Pricing Management service is driving a 24.6% performance lift for $1M+ STR operators, even in down markets.
If you’re managing 15+ listings and want a free pricing audit, apply here
In this episode of Get Paid for Your Pad, we break down Airbnb’s new 15.5% host fee and what it really means for your bottom line.
You’ll learn the exact markup you need to stay whole, how to adjust cleaning fees, and the hidden ripple effects most operators will overlook.
You’ll hear:
- The simple math behind Airbnb’s new 15.5% fee (and why it’s confusing hosts worldwide)
- How to calculate your markup step-by-step to maintain the same payout
- Why a 12.5% gap can quietly drain six figures from your portfolio
- How PMS settings and rounding errors distort your rates
- Why cleaning fees, resort fees, and even taxes must be updated too
We also talk about:
- What this change means for property managers splitting revenue with owners
- How to avoid miscalculations that overprice your listings overnight
- How this shift impacts guest transparency and OTA pricing parity
- Why simplicity and accuracy will define the next stage of professional hosting
🎯Mentioned in the Episode:
Freewyld Foundry: Airbnb Markup Calculator → freewyldfoundry.com/markup
Freewyld Foundry: Revenue & Pricing Management → freewyldfoundry.com
VRMA Las Vegas 2024
🔥Favorite Takeaway:
“Don’t just raise prices. Calculate with precision, every percent matters when protecting your profit.”
Want to know the exact markup your Airbnb listings need?
Use our free calculator at freewyldfoundry.com/markup.
Listen to the episode:
Watch the episode:
PREFER TO READ THE EPISODE?
Jasper Ribbers (Freewyld):
Welcome back to Get Paid for Your Pad. Today’s a big one. If you’re a host on Airbnb, this is the day the platform changes how much you pay in host fees. Airbnb just increased their fee from 3% to 15.5%, and that’s a major shift for anyone managing listings through a PMS.
To help us break it down, I’ve got my colleague Miles Chew, one of our Revenue Managers at Freewyld Foundry.
Miles Chew (Freewyld):
Thanks, Jasper. Glad to be here. It’s definitely one of the biggest changes Airbnb has made in years, and a lot of operators are still figuring out what it means for their payouts.
Jasper:
Exactly. Before we get into the math, let’s set the stage. Airbnb has been slowly moving hosts into this “host-only” fee model for a while. Starting today, the standard fee jumps to 15.5%. If you were already paying 15%, it’s a small bump. But for hosts who were still on the old 3% model, it’s a huge change.
And to be clear, this applies to PMS-connected hosts, which means the larger, more professional operators. If you’re managing a few listings without a PMS, you’re still on the 3% model for now.
Miles:
Right, but by December 1st, almost everyone will be on the new 15.5% system. There are a few exceptions, like Brazil, where it’s 16%, but for most hosts, this update is universal.
Jasper:
So, let’s talk about what that means in practice. Say you push a $100 nightly rate from your pricing tool or PMS. Under the old 3% system, Airbnb would take $3, leaving you with $97.
Now, with a 15.5% fee, Airbnb takes $15.50, leaving you with $84.50 instead of $97. To keep your payouts consistent, you need to increase your rate on Airbnb by 14.79%. That’s the number that keeps your revenue whole.
Miles:
And if you were already marking up your rates to cover the 3% fee, you’ll need to increase that markup to 18.34% to stay even. We built a calculator that does all of this for you at freewyldfoundry.com/markup.
Jasper:
Exactly. There’s been a lot of confusion out there, but if you want to make the same money you did before this change, those two numbers are what you need: 14.79% if you had no markup before, and 18.34% if you did.
Miles:
Just remember, different PMS systems handle decimals differently. Some allow two decimal places, others round automatically. Don’t stress too much about the tiny differences. Rounding up to 15% or 18% works fine.
Jasper:
Here’s where it gets trickier. If you’re a property manager charging owners a commission, this change can affect how you split revenue. Some managers calculate their fee on the gross rent, others after deducting Airbnb’s commission.
Now that the commission is higher, you might need to adjust your owner splits to make sure no one loses money unintentionally.
Miles:
Exactly. And it’s not just nightly rates. You also need to adjust cleaning fees, resort fees, and pet fees. For example, if you charge a $100 cleaning fee, Airbnb now keeps $15.50 instead of $3. That’s a big difference if you’re paying your cleaners a fixed rate.
Jasper:
Good point. To stay whole, you should mark up all those fees by the same percentage, either 14.79% or 18.34%, depending on your setup.
Miles:
Another detail a lot of hosts miss is how this affects taxes. In some regions, occupancy taxes are calculated on the total booking amount. When your prices go up, so do the taxes your guests pay. It’s not a problem for hosts, but it does make stays slightly more expensive for guests overall.
Jasper:
Yeah, and that could impact demand in price-sensitive markets. It’s a small effect, but worth monitoring.
Miles:
Exactly. My biggest recommendation is simple:
- Check your current markup.
- Update it to match the new structure.
- Adjust all fees tied to bookings.
- Review your owner splits and PMS setup to make sure your math still works.
Jasper:
Perfect summary. And if you’re not sure how to calculate your exact markup, go to freewyldfoundry.com/markup. The tool does all the work for you.
Miles, thanks for joining me. This was a big one, and I think we just saved a lot of hosts some serious headaches.
Miles:
Happy to help. And yes, the link’s in the show notes.
Jasper:
That’s right. Thanks for tuning in to Get Paid for Your Pad. See you next time.
