Algorithm pricing problem

James4835

I can't get an answer from Airbnb! When they switch over and begin to charge host For the fees algorithm must be updated. If they don't back date the algorithm that runs smart pricing accommodations will be underpriced And host will end up paying the fees without compensation

I have asked Airbnb if they are going to go back and update the algorithm and no one can give me an answer

James4835

@James4835

Good point! I wouldn’t really rely on anything a front line CS agent would say on this topic.

We don’t use Smart Pricing…it’s not very “smart” I suggest turning it off until the dust settles after Oct 27th and either manually price your listing or use the much better dynamic pricing software out there like PriceLabs.

James4835

Is this about the above @Joan2709 @James4835 ?

It only applies to hosts already on the single fee structure? ("Most hosts currently on the single-fee structure"). The single fee structure will be increased to 15.5%.

From the wording above, it seems to me that hosts on the split fee structure are not affected.

James4835

@Shelley159

Yes…it does apply. Some Hosts using PMS in some countries were allowed to keep split fee. No longer. Effective 10/26/25 - All hosts using a PMS will be mandatory Host only fee AND the fee is increased to 15.5%.

James4835

@Shelley159

Now that I have read it again....not sure.

Guess we'll have to see what happens to those on the split fee.

James4835

@Shelley159 @James4835

The more I read this...I think you might be right?

I was raising alarm bells for those on split fee, but the way it's worded, it looks like @Shelley159 might be correct in that it seems it is only applied to those using single fee whether they use a PMS or not?

Thanks for pointing that out Shelley!

James4835

Hello @Shelley159 @Joan2709 @James4835

This change is causing a lot of disagreement on the net so thought I would reread the help link on the subject which I think makes things a lot clearer on whether or not the split fee hosts is changing.

The screen shot that Shelley uses, is the one seen under the title "Single fees" but if we look at what is written under the "Split fee" heading we read this:

The split-fee pricing structure will no longer be available to hosts who use property management software to manage their listing, effective as follows:

August 25, 2025: New hosts who use property management software that sign up with Airbnb can only select the single fee structure.
October 27, 2025: Most hosts who use property management software will automatically transition to the single fee structure.
Hosts who don’t use property management software are not affected, and can continue to use the split-fee pricing structure.

Source: https://www.airbnb.co.uk/help/article/1857

So I think it's safe to say that for split fee hosts, there is no change. Do you agree?

James4835

@Joelle43

Aha! That is new wording that has been added since I first posted! 😊

Current Version

Previous Version

-this one mentions a Dec 1 start date (now removed) and wording different from the current version and states "...most Hosts not using property management software..."

https://www.airbnb.com/help/article/1857

In the past, some countries were exempt from the single-fee structure and could still use split fee when using a PMS. Not it appears that will no longer be the case and any Host using a PMS in any country will transition to the single fee structure automatically.

Previous Countries Exempt From Single Fee if Using PMS

(now must transition to single fee)

@Shelley159 @James4835

James4835

@Joan2709

I'm not sure it has been removed to be honest, it just depends where you look under the help link. The date of 1st December is still there when I look under the heading "Single Fee" structure?

Under the split fee heading, it seems clear from the explanation, that split fee hosts are not being moved to the new single fee (this year at least🤞)

James4835

@Joelle43

Maybe I missed that? You might be right!

Maybe I didn't scroll down far enough!

😱