Navigating Airbnb's Service Fee Change
Airbnb is rolling out a significant change to its fee structure, and if you're managing vacation rentals in Aspen through property management software, this update affects you directly. Starting October 27, 2025, the platform will transition all PMS (Property Management Software) connected hosts to a host-only fee model of 15.5% (16% in Brazil). While the percentage might look higher at first glance, the actual math tells a different story, one that could work in your favor.
Here's everything you need to know about this transition and how to adjust your pricing strategy to maintain (or even improve) your revenue. Or if you’re letting a property manager take care of the asset – ask them about their strategy.
What's Actually Changing?
Airbnb currently operates on a split-fee structure where hosts typically pay around 3% and guests pay between 14-16% in service fees. Under the new model rolling out this fall, hosts will pay a single 15.5% fee, while guests will pay no separate service fee.
This change applies to all hosts using property management software, including those managing traditional hospitality listings like hotels and serviced apartments. If you're connected to a PMS system, you'll automatically transition on October 27, 2025. Hosts not using PMS will follow on December 1, 2025.
New host accounts created after August 25, 2025, will default to the 15.5% fee structure immediately upon connecting to a software for distribution.
The Impact on Your Aspen Rental Revenue
The crucial detail many hosts miss is this: the total fees paid to Airbnb will actually decrease by 1.6% to 4% under the new structure. Previously, Airbnb collected between 17.1% and 19.5% in combined fees. Now, they're collecting just 15.5%.
Let's break down what this means with a concrete example:
Previous model:
- You list your property at $200/night
- Guest pays approximately $230 total (with ~14-16% guest fee)
- You receive roughly $194 after Airbnb's 3% host fee
- Total Airbnb take: ~$36 (approximately 15.6% to 18.4% of the guest's payment)
New model:
- You list your property at $229.58/night
- Guest pays $229.58 total (no separate guest fee)
- You receive $194 after Airbnb's 15.5% fee
- Total Airbnb take: $35.58 (15.5% of the guest's payment)
The guest pays essentially the same amount, you receive the same payout, but Airbnb collects less overall. The key is adjusting your listing price appropriately.
How to Adjust Your Pricing
The adjustment you need depends on whether you're currently using markups in your pricing strategy.
If You Use Markups
Set your Aspen Airbnb markup to 18.34% through your property management or distribution system. This percentage ensures that after Airbnb takes their 15.5% fee, you'll maintain your target payout.
Why 18.34%? If your target payout is $100 and you apply only a 15.5% markup, your net earnings would drop to $97.60. With an 18.34% markup, the guest pays $118.34, Airbnb takes $18.34, and you receive your full $100 target.
Important note: This markup applies to nightly rates only. You'll need to manually adjust other host-charged fees like cleaning fees, linen fees, and extra guest charges separately.
If You Don't Use Markups
Manually increase your base price and all host fees using this formula:
New price = old price × 1.1479
For example:
- Old nightly rate: $200 (with a $194 payout)
- New nightly rate: $200 × 1.1479 = $229.58
- After 15.5% Airbnb fee: $229.58 × 0.845 = $194 payout
However, if you're managing multiple properties in the competitive Aspen market, manually updating each listing can become time-consuming. This is where adopting a markup strategy through your software makes more sense.
Important Timeline to Remember
August 25, 2025: New host accounts created on or after this date default to the 15.5% fee once connected to a PMS.
October 27, 2025: All existing hosts connected to a PMS automatically transition to the 15.5% fee. This is your deadline for updating pricing to maintain current revenue levels.
December 1, 2025: Self-Hosts not connected to a PMS will transition to the 15.5% fee structure.
Why This Change Benefits Aspen Hosts
Beyond the lower overall fees paid to Airbnb, this new structure offers several advantages:
More transparent pricing for guests: When travelers search for Aspen properties, they'll see the full price upfront without needing to calculate additional service fees. This transparency can reduce booking friction and improve conversion rates.
Greater pricing control: You now have complete control over what guests pay. This flexibility allows you to adjust your strategy based on seasonal demand in Aspen's dynamic vacation rental market.
Competitive positioning: With clearer pricing, your listings can compete more effectively against hotels and other short-term rentals in the Aspen area.
Take Action Now
Waiting until the October 27 deadline could mean lost revenue. If you don't update your pricing before the automatic transition, your payouts will drop until you adjust. If you’re self-managing Host, please act or consult your property management company if you’re letting someone manage the asset.
Here's your action plan:
- Calculate your new rates using the formulas above
- Update your pricing or markups in your property management system
- If you want to switch early (before October 27), you can do so in your Airbnb account under Account → Payments & payouts → Service Fee
Early adopters who switch before October 27 may be eligible for a 15% fee instead of 15.5%, potentially saving an additional 0.5% on every booking.
Navigating Changes in Aspen's Vacation Rental Market
Fee structure changes are just one piece of the puzzle when it comes to maximizing your vacation rental's performance in Aspen. Between seasonal pricing fluctuations, local regulations, and evolving guest expectations, managing a successful short-term rental requires expertise and attention to detail.
At Aspen Real Estate, Ryan Schwartz specializes in helping property owners navigate the complexities of the Aspen vacation rental market. Whether you need guidance on pricing strategies, property management providers, or choosing the right asset with rental income potential - Ryan's deep knowledge of the local market ensures your investment performs at its peak.