Airbnb pricing isn’t guesswork anymore. Whether you manage hundreds of listings or just one, what you charge—and how you charge—directly shapes your visibility in search, your booking volume, and your bottom line.
But Airbnb keeps changing the game: from displaying total prices by default to phasing out guest service fees for PMS-connected accounts, the landscape has shifted. Hosts and professional managers alike need updated strategies and better tools to stay competitive without slashing profits.
This guide breaks down how Airbnb pricing works, recent changes, and practical tips and terms to help you take full control.
How Airbnb Pricing Works (and Why It’s Evolving)
Airbnb’s pricing system is a mix of what you set, what guests see, and what Airbnb charges behind the scenes.
What You Control
- Base Price: The nightly rate you charge.
- Cleaning Fee: A one-time fee per booking.
- Custom Prices: Special rates for holidays, events, or slow seasons.
- Discounts: Weekly/monthly discounts, early-bird, or last-minute offers.
These elements still matter—but now that Airbnb shows total prices up front and charges many hosts a 15.5% commission, how you structure and display these charges makes a big difference.
What’s New in Airbnb Pricing (2024–2025)
1. Global Rollout of Total Price Display
Since April 2025, Airbnb guests worldwide now see the total price—including nightly rate, cleaning fee, and service fee—before clicking on a listing.
This change, meant to increase transparency and align with regulations, affects how your pricing looks compared to others.
Why it matters:
- Low nightly rate + high cleaning fee tricks don’t work anymore.
- Guests compare total cost, not base price.
- Listings with streamlined fees may convert better—even at the same total.
2. Host-Only Fee Model Now Standard at 15.5%
As of August 2025, Airbnb phased out the split-fee model (3% host / ~14% guest) for most PMS-connected listings.
Instead, a 15.5% host-only fee (16% in Brazil) now applies to nearly all professional accounts. While many European managers were already using host-only, this is new for many in the U.S.
Implications:
- If you don’t raise prices or adjust margins, you may lose profitability.
- You need to account for this fee in your base pricing and owner agreements.
Airbnb’s Strategy: Lower Prices, Higher Conversions
Airbnb is pushing for more competitive pricing by making tools easier to use and encouraging small price drops.
Tool Updates That Drive This:
- Simplified discount settings
- “Similar Listings” comparison tool
- Clearer UI for weekly/monthly rate setup
These changes aim to help everyday hosts—but they also signal Airbnb’s intention to nudge prices downward to stay competitive with hotels and other platforms.
Airbnb vs. PriceLabs: Built-In vs. Professional Pricing Tools
When it comes to pricing, Airbnb offers simplicity, while tools like PriceLabs give you data-rich control.
Airbnb’s Native Tools
| Feature | Description |
|---|---|
| Smart Pricing | Auto-adjusts prices based on demand in your area |
| Similar Listings | Compares your price to others nearby |
| Custom Discounts | Lets you set weekly, monthly, or promo discounts |
| Total Price Calculator | Helps you estimate what guests see based on your setup |
✅ Good for: New hosts or those managing <5 properties who want simplicity without extra tools.
PriceLabs (Recommended by RSU)
| Feature | Description |
|---|---|
| Dynamic Pricing | Auto-adjusts rates daily based on demand, events, seasonality, booking pace |
| Portfolio-Wide Adjustments | Apply pricing rules across all your listings in one go, with filters by location or property type |
| Market Dashboards | Real-time local data: ADR trends, occupancy, pacing, and competitor rates |
| Custom Rules & Minimum Stays | Tailor pricing and stay lengths based on lead time, booking gaps, events, or day of week |
| Forecasting & Alerts | Predict future demand spikes |
🧠 Best for: Both professional short-term rental managers and smaller hosts managing multiple listings who want to save time, avoid underpricing, and respond quickly to market shifts.
Glossary of Airbnb Pricing Terms
Total Price Display
The full cost shown to guests upfront in Airbnb search results, including nightly rate, cleaning fee, and service fee.
Host-Only Fee
A commission model where Airbnb takes 15.5% from the host’s payout (instead of splitting between host and guest). Now standard for PMS-connected hosts.
Smart Pricing
Airbnb’s built-in dynamic pricing tool that automatically adjusts rates based on local demand signals. Basic but useful for smaller portfolios.
Dynamic Pricing
The practice of changing nightly rates in real time based on market conditions—such as events, holidays, occupancy trends, and competitor pricing. Best implemented via external tools like PriceLabs.
Minimum Stay Rules
Settings that control how short or long a guest’s stay can be (e.g., 2-night minimum on weekends, 5-night minimum during holidays).
Gap Filler Pricing
Discounts applied to fill short gaps between two longer bookings, often used to maintain occupancy without hurting profitability.
Portfolio-Wide Adjustments
The ability to apply changes—such as a 10% holiday uplift or a new minimum stay—across many listings at once, saving time and ensuring consistency.
Market Dashboard
A tool (offered by PriceLabs) that gives real-time data on ADRs, booking trends, and competitor pricing in a specific geographic area.
Length of Stay Discounts (LoS)
Discounts automatically applied when a guest books longer (e.g., 10% off weekly stays, 20% off monthly).
Lead Time
The number of days between booking and check-in. Useful for setting last-minute discounts or requiring longer notice during peak seasons.
Final Word: Price Smarter, Not Cheaper
Pricing is no longer static. What works today might underperform tomorrow—especially with Airbnb reshaping visibility and fees.
Whether you’re just getting started or scaling up, use the tools available to stay ahead. For some, Airbnb’s built-in tools may be enough. But if you want data-driven control, faster response times, and profitability at scale, dynamic pricing tools like PriceLabs are essential.
💡 Further Reading & Videos: