AirBnB: Split Fee Model ends from October for Irish Hosts

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AirBnB: Split Fee Model ends from October for Irish Hosts

Changes to Airbnb Fees model from 13/10/2026, Why changing, what hosts shoudl pay attetion to to retain income.

How the new 15.5% host fee affects pricing, taxes and Greek property owners.

One of the most significant changes in recent years regarding Airbnb’s service fee will come into effect on October 13, affecting thousands of private hosts in Ireland and worldwide.

The platform is permanently discontinuing the split fee model, under which part of the commission was charged to the host and part to the guest, and is moving all hosts to the single fee model, where the entire service fee of 15.5% will be charged exclusively to the host.

The change is part of Airbnb’s strategy to introduce simpler and more transparent pricing. However, for the Irish market, it creates new challenges not only in terms of pricing strategies at a time when the Register for STR Bill is being introduced for short-term rentals.

 

What applied until now

Until now, most private hosts who managed their properties independently could still use the split fee model.  Under this system:

  • the host paid a commission of approximately 3% plus VAT,
  • the guest paid a separate service fee of approximately 14.2% plus VAT.

Overall, Airbnb collected fees exceeding 17% of the booking value, but the cost was shared between the two sides.

This model remained available to many private hosts, even though Airbnb had already started transitioning to the new system for professional property managers and hosts using channel managers.

 

Airbnb Service Fee: How the Charging Model is Changing

Under the new model, the separate service fee charged to guests will be eliminated for most bookings.

Instead, Airbnb will deduct a 15.5% service fee exclusively from the host.

In practice, this means that hosts who want to maintain the same net income will need to adjust the prices displayed on their calendars. To support this transition, Airbnb provides an automatic price adjustment tool, allowing hosts to move to the new system without a significant change in the net amount they receive.

 

Why Airbnb is Changing the Model

According to Airbnb, the elimination of the split fee model is mainly aimed at improving price transparency.

Under the previous system, many guests saw one price during the search process, which increased significantly at checkout due to the platform’s service fee. At the same time, many hosts struggled to properly align their Airbnb prices with those on other platforms, such as Booking.com. As a result, the same property often appeared more expensive on Airbnb, even though this was not a deliberate pricing decision by the host.

With the new system, the price set by the host is much closer to the final price displayed to the guest. According to Airbnb, this makes price comparison easier and simplifies management across multiple distribution channels.

 

What Hosts Should Pay Attention To

Airbnb recommends that hosts carefully review the new arrangements before completing the transition to the new fee structure.

Particular attention is required when adjusting prices, as incorrect calculations could either lead to revenue losses or to a significant increase in the final price of the accommodation.

For Irish private hosts, the change is even more significant, as the new fee structure affects the competitiveness of their listings.   The end of the split fee model marks the conclusion of a system that had been in place on Airbnb for many years. Although the company argues that the new policy will provide greater transparency and simpler pricing, for thousands of Irish hosts the transition will not simply involve changing prices, but also carefully redesigning the overall financial management of their properties.

 

From an article by Vicky Trifona Editor-in-Chief BnBNews.gr

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