Airbnb has introduced a new flat 15.5% host fee, and for many homeowners, this shift creates a significant change in how much you take home from each booking. If you’re asking yourself, “How do I still make money?” — you’re not alone. Hosting is still profitable, but the strategy behind it must evolve.
This guide breaks down how the new fee works, how it impacts owners, and the practical steps you can take right now to stay profitable moving forward.
Understanding Airbnb’s New Host Fee
Under the old fee model, hosts paid around 3% while guests carried most of the service fees. Today, Airbnb has shifted toward a host-only fee that can be as high as 15.5%.
Why Airbnb made this change:
- Lower guest fees help Airbnb appear more competitive with hotels.
- Cheaper guest-facing prices can increase bookings.
- Airbnb gains more control over the fee structure.
Why hosts are frustrated:
- What used to be a 3% cost is now over five times higher.
- Profit margins shrink if nightly rates stay the same.
- Rising utilities, cleaning costs, and taxes were already affecting earnings.
Even though the change hurts, your listing can still be highly profitable — if you adjust your strategy.
How Hosts Can Still Make Money With the New Fee
1. Adjust Nightly Rates Strategically
Raising prices blindly can hurt bookings, but small, strategic increases can fully offset the new fee. Consider:
- Small increases during weekdays (3% to 7%)
- Higher increases during peak weekends or events (8% to 15%)
- Adjusting weekly and monthly prices to capture longer stays
Most travelers won’t notice or care about slight increases, especially during holidays or high-demand weekends.
2. Improve Your Listing’s Conversion Rate
A strong listing earns more, regardless of Airbnb’s fee.
To increase conversions:
- Use professional photos
- Write a compelling headline
- Highlight unique features of your space
- Publish an accurate and detailed listing description
- Enable instant book and maintain fast response times
Improved conversions lead to more bookings, higher ranking, and stronger overall performance.
3. Target Longer Stays
Longer stays increase net profits because you save on turnover and cleaning costs.
Strategies that attract longer stays:
- Offer weekly or monthly discounts
- Provide a dedicated workspace
- Promote amenities useful for extended trips
- Allow early check-in for week-long stays when possible
Longer stays mean fewer turnovers and more consistent revenue.
4. Reduce Operating Costs Without Cutting Quality
Look for efficiency improvements such as:
- Automating guest messaging
- Using a professional turnover team with checklist systems
- Restocking supplies in bulk
- Using smart home devices for heating, cooling, and lock access
These steps reduce your workload and long-term operating costs.
5. Use Dynamic Pricing
Static pricing is the fastest way to lose money.
Dynamic pricing tools adjust your rate based on:
- Local demand
- Competitor pricing
- Seasonality
- Events
- Historical booking patterns
Using these tools can increase revenue by 10% to 25%, easily making up for Airbnb’s new fee.
6. Increase Perceived Value
Guests will pay more if they feel the property offers more value.
Simple upgrades can make a big difference:
- Higher-quality linens and pillows
- Better lighting
- Updated decor or accent pieces
- Smart TV or fast Wi-Fi
- Small welcome gifts
These create a memorable stay and justify a higher nightly rate.
7. Encourage Repeat Guests
Direct bookings eliminate Airbnb fees altogether.
Ways to encourage repeat bookings:
- Include a business card or QR code linking to your direct site
- Leave a note welcoming guests to return
- Create a small discount for returning travelers
Returning guests are the highest-margin bookings you will ever get.
Why Co-Hosting Helps Hosts Recover the New Fee
The hosts most affected by the new fee are the ones who lack optimized pricing, fast messaging, or consistent operations. The hosts least affected are those who treat their listing like a business.
This is where co-hosting becomes valuable.
A good co-host can:
- Help you price correctly
- Boost visibility and ranking
- Improve guest satisfaction
- Reduce operational costs
- Prevent damages and negative reviews
- Automate repetitive tasks
- Manage turnovers and supplies
A professional co-hosting service helps owners earn more, even with Airbnb’s updated fee structure.
How Placerr Helps Hosts Stay Profitable Under the New Fee Model
Placerr’s co-hosting system is built for the 2025 STR landscape. Our approach focuses on maximizing revenue and minimizing stress.
Placerr provides:
- AI-powered dynamic pricing
- High-speed guest communication
- Professional listing optimization
- Reliable cleaning and turnover processes
- Property care and maintenance coordination
- Guest screening
- Documentation and compliance support
- Transparent performance reporting
Even with the new 15.5% fee, Placerr helps hosts earn more and maintain strong cash flow throughout the year.
Final Thoughts
Airbnb’s new fee structure is a major shift, but it doesn’t mean hosting is no longer profitable. It simply means hosts must operate more strategically.
You can still make excellent returns if you:
- Adjust your pricing
- Improve your listing quality
- Reduce operational waste
- Focus on longer stays
- Encourage repeat guests
- Partner with a professional co-hosting service
With the right approach, 2025 can still be your most profitable year yet.
Start With a Free Property Evaluation
See exactly how much your home can earn, even with Airbnb’s new fee model.
Email: hello@placerr.com
Website: www.placerr.com
Placerr
Your Place, Managed Better.
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