Host base service fee and Split service fee

[Alexander185]

I am in the process of getting all rental channels I use for my STR business to channel manager(CM) b/c I want instant booking on all channels and have to come up with a sure way to avoid double bookings and insane airbnb, Vrbo host fees if I have to cancel b/c of double booking. Anyway, when switching Airbnb to CM they switched me from split base service fee model to host base service fee model. So when Airbnb switched me from the split base fee model (14.2% guest fee + 3% host fee = 17.2%) to their "new and improved, better for host and guest as they claim" Host Base Fee model—a flat 15% charged to the host—it seemed like an improvement.

But after crunching the numbers, I discovered it’s anything but. 

Here’s the truth: While 15% sounds better than 17.2%, Airbnb’s Host Base Fee isn’t as simple as it looks. They calculate their 15% fee on everything—including any extra fees I add to cover that host fee. That means I’m stuck paying a fee on top of a fee!

The Reality: I want to keep my payout at $2,100 for a 2-night stay (including the cleaning fee), no matter the platform I use. But here’s what happens when I compare Airbnb’s Host Base Fee model to the old split base fee model:

Example Breakdown:

* Target payout: $2,100

* To maintain that payout under the Host Base Fee model (15%), I need to charge my guest 17.92% more, meaning the guest pays 18.5% more than they would under the split fee model.

* Split Base Fee Model (17.2%): The guest pays less overall, and I get the full $2,100 payout without hidden extra costs.

Breakdown: Airbnb’s 15% fee is applied not just to the booking total, but also to any fees I add—like a management fee or an increased nightly rate to offset the higher host fee. This significantly drives up the guest’s total cost.

Example Guest Costs:

* Host Base Fee Model: Guest pays $2,842.19

* Split Base Fee Model: Guest pays $2,398.20

* That’s a $442.99 difference purely from Airbnb’s fee structure!

The Real Question: Do hosts simply pass this extra expense on to guests (and risk losing to competitors still on the split base fee model), or do we eat the cost ourselves, or split the difference —paying even more to Airbnb just for the privilege of using their platform?

Either way, it’s a lose-lose for hosts and/or guests. Airbnb’s Host Base Fee might look like it’s better for everyone, but in reality, it’s just another way for them to pad their own bottom line—leaving both hosts and guests paying more.

[Bhumika]

Hi @Alexander185 , thanks for sharing your observations with the host community!  I am curious to read if our experienced hosts @Joelle43 @Joan2709 @Mike-And-Jane0 @Zheng49 have similar findings!

@Alexander185 if you'd like to share any further feedback, please feel free to also share them directly with Airbnb through the 👉 Feedback Form 👈

[Alexander185]

Hi Bhumika, thank you. I've got the same advice from an airbnb support people I was working with which I have already done. The only additional info I've found since this post that I should NOT have been forcefully switched over from Split service fee to Host base service fee b/c my listing is in US. Directly from Airbnb:

"2. Host-only fee

With this structure, the entire fee is deducted from the Host payout. It’s typically 14–16%, though Hosts with Super Strict cancellation policies may pay more, and fees for stays of 28 nights or more may be less.

This fee is mandatory for traditional hospitality listings–such as hotels, serviced apartments, etc., as well as software-connected hosts (unless most of their listings are in the USA, Canada, the Bahamas, Mexico, Argentina, Taiwan, or Uruguay)."

Now, I've disconnected my API connection to get back to split fee but nothing is that simple LOL. Service fee option is completely gone from my account. I've been told that there is an open case number A30366838 that effect hundredths of hosts in similar situation as I and it will be fixed ASAP ... it has been ten days and counting. Meantime every day my listing is less competitive b/c of much higher fees I am loosing business. 

[Bhumika]

Hi @Alexander185 , thanks for more context! Please allow me to reach you via direct message, as we look forward from advices from other hosts.

[Joan2709]

@Alexander185 

@Bhumika tagged me here....

Can you tell me what property type you have your listing under? 

[Alexander185]

Sure. It is a house. 

[Joan2709]

@ @Alexander185 

So you have it listed as "House" and the second choice you have chosen "Home"?

[Alexander185]

Yes. You are right. The listing is House and Home. Should I change it to something else just to see if it will trigger something in a system and perhaps fix this issue?

[Joan2709]

@Alexander185 

Hmmm....I could be grasping at straws here.. The reason I asked is because you have a unique subtitle that Airbnb generates for every listing. Yours says "Entire Vacation Home..." Most other listings that choose "House/Home the subtitle says Entire Home only. 

I usually only see this unique subtitle on very large homes. I'm wondering if based on the bedrooms/beds Airbnb is classifying your listing as a "Hotel." If so, you would automatically be switched to Simplified Pricing if the system thinks you are a Hotel, even if you are US based.

It could be the coding is supposed to check 3 data points:

1. If you have added a channel manager (you did)

2.Type of property

3. Where you are located (US)

It then does a "if, then" to determine if they automatically switch you to Simplified Pricing.

That said, I have seen two other posts on the CC where the Host attached a channel manager, then disconnected and were not able to return to the Split Fee Option as it was not automatically re-generated as an option when disconnecting. This tells me there is a possible bug.

Have you checked the Service Fee Option under your account on both a desktop and your phone?

You could try changing your Property type to "chalet" since you are in a ski resort and have a large property? I'm curious if your subtitle would change and if it has any effect?

[Alexander185]

Thank you. I do check the status at least twice per day. "Service fee" is not there. I changed the property to "Chalet" but still the same. I am going to leave it as "Chalet" for a few days at least hoping some batch job, croller or whatever Airbnb is using might catch on and trigger a change. 🤞 Yes, there is a bug and a case number A30366838 for this issue. It is just not getting fixed ... 10 days and counting. Thank you for your help! 

PS Is there a way for me to fix this subtitle?

[Alexander185]

Hi, can I ask you how long ago did you learn about other hosts having the same issue as I and if you know if they've had it fixed? 

[Joan2709]

@Alexander185 

I typed "Split Fee" in the search box and several other threads came up. The most recent I remember was 9/30/24. I did not see anyone post that this had been fixed.

[Alexander185]

Thank you for your reply. My case is open since 9/9/24 ... and I keep hearing it will be fixed ASAP. First it was "about a week", then "should not be more than a couple days more" ... Meantime my listing is not competitive b/c of so much higher fees and I am loosing business every day it is not fixed. So, I am very open for any and all suggestions. Thanks again.

PS I was contacted by Airbnb support while speaking with you. Fingers cross she can actually find some way to help me. I'll let you know of the outcome. 

[Mike-And-Jane0]

@Alexander185 Your maths is wrong I am afraid. Also you need to account for tax on the Airbnb fees. 
With no VAT (typical Europe tax) if you do the sums properly the amount paid by the guest and received by the host is pretty much identical. With a 20% tax applied to the Airbnb fees then the simplified pricing is about 0.5% more expensive so not a big deal.