What Hosts Actually Pay
Let us break it down, for the big 3 platforms.
1. Airbnb
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Split‑fee model (most individual hosts): Host pays around 3 percent of booking subtotal, while guest pays roughly 14–14.2 percent service fee.
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Host‑only model (common for software‑connected or professional listings): Host absorbs everything, usually 14–16 percent. The recent increase to 15.5 percent aligns with this model.
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Fees may go higher for strict cancellation policies or luxury listings.
2. Booking.com
STR hosts pay a flat commission, typically around 15 percent of the booking value. In some cases it ranges between 10 and 25 percent depending on location or additional services or type of accommodation. Guests face no fee, which can make listings appear cleaner at checkout.
3. Vrbo
Hosts can choose:
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Pay‑per‑booking model: 5 percent commission on booking total plus 3 percent payment processing, sometimes with extra VAT — total roughly 8 percent before any taxes. The cheapest of the big three booking platforms.
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Annual subscription model: Pay US$499 per year, avoid per‑booking commission, but still pay the 3 percent processing fee.
Quick Comparison Table
| Platform | Host Fee Structure | Approximate Host Cost |
|---|---|---|
| Airbnb (split fee) | 3 percent from host, guest pays rest | ≈ 3 percent |
| Airbnb (host only – applicable if you use a channel manager) | Host pays entire fee | 14–16 percent (now 15.5 percent) |
| Booking.com | Flat commission | ≈ 15 percent |
| Vrbo (pay-per-booking) | Commission + processing | ≈ 8 percent |
| Vrbo (subscription) | Annual fee + processing | (Subscription / booking) + 3 percent |
Why This Matters
Every percent off your payout shrinks your margin. Airbnb’s increase necessarily affects host earnings, making your direct booking strategy more urgent than ever. Meanwhile Booking.com stays steady but not cheap, and Vrbo remains the most cost-effective option if you are ok with adding complexity or have volume.
What You Should Do
Here is what to focus on:
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Crunch the numbers. Know exactly what each OTA deducts, and how that influences your nightly pricing per platform! Hello Hosty allows you to tailor your rates per platform so you can push those with lower commissions.
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Adjust pricing accordingly so your net stays healthy, especially on Airbnb if you are on host-only model, which is likely if you’re a professional host!
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Use Vrbo’s subscription if volume supports it, it can be cheaper. Optimise for VRBO as they are the cheapest of the big 3!
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Invest in direct bookings using tools like Hello Hosty to bypass OTAs, retain guest info, and build loyalty!
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Encourage direct rebooking, maybe with a small bonus or personalised message post-stay, but certainly obtain guest’s direct contact whenever possible. We’ve written a blog on how to do this best!