Your guide to Airbnb service fees

Running a successful Airbnb can mean earning extra money, but you’ll also have expenses to consider, including service fees. While they may seem like an unnecessary charge that bites into your profit, Airbnb service fees are actually an essential part of letting your property. To explain, we've put together this guide to Airbnb service fees, showing how they can help keep your guests happy and your business ticking over.

What are Airbnb service fees?

The Airbnb service fee is a mandatory charge added to all reservations to cover customer support, marketing, and administration. The money helps Airbnb promote your property and provide a smooth booking experience for hosts and guests.

How much are Airbnb host fees?

Generally, Airbnb hosts pay 3% of the booking subtotal¹, plus VAT, but this can vary depending on your location, cancellation policy, and the type of property you let. Airbnb uses two main fee structures for hosts: the split fee and the host-only fee. The one that applies to you may depend on how your account is set up, the type of property you let, or whether you use third-party software to manage bookings. Below, we’ve outlined how each model works so you can see which applies to you and what to expect in terms of charges.

Split fee

The split service fee is the most common option. As the name suggests, the fee is split between you and the guest. However, most guests pay the largest fee—up to 14.2% of the subtotal¹. This includes the cleaning fee, nightly rate, and any additional guest charges if applicable. For example, this could mean that if you’re charging a guest £100 for the property, Airbnb may charge the guest around £14.20 extra for the service charge. So, your guest would pay £114.20, of which £14.20 goes to Airbnb. Most hosts will pay a service fee of 3% of the subtotal. However, Airbnb may charge some hosts more. For instance, hosts with strict cancellation policies or listings in certain countries (such as Italy) can expect a higher service fee.

Host-only fee

With the host-only fee option, Airbnb deducts the entire service cost from you, the host. The amount generally ranges between 14% and 16%. Again, hosts with strict cancellation policies, who are classified as Airbnb Plus Hosts, or hosts with properties in specific locations, may pay higher service fees.

How to decide which Airbnb service fee structure to use

Most hosts can select a service fee structure, although some have no choice. Host-only fees are mandatory for certain properties like hotels, hostels, serviced apartments, or software-connected hosts (i.e., people who connect CMS systems to Airbnb). However, for those who have a choice, it’s worthwhile considering the pros and cons of both options. A split fee can allow hosts to charge a lower nightly rate. Your property may offer greater value for money than others, although some customers might not appreciate the additional, unexpected costs when booking. On the other hand, the host-only fee can make your listing appear more attractive to potential renters. The price listed is the price they pay, which means no additional service costs. It can also allow you to charge a higher nightly rate, which is better for your profit. Then again, higher nightly rates may encourage customers to opt for cheaper properties. If you already charge high additional fees, such as for cleaning, then the host-only option may be better. Otherwise, you may find that customers quickly change their minds when facing more expensive costs. But if you’re a host that pays higher service fees, then a split fee is probably more profitable for your business.

How does Airbnb collect service fee payments?

Service fees on Airbnb are already deducted from your profit after a successful booking, so there are no further costs to pay. To see your service fee, click on your transaction history. Then find the relevant booking code and select ‘Payout’.

How does Airbnb collect service fee payments?

Airbnb deducts service fees automatically from your earnings once a booking is confirmed—there are no separate invoices or payments required. You can see your service fee by clicking on your transaction history, finding the relevant booking code and selecting ‘Payout’.

Can you get an Airbnb service fee refund?

In most cases, Airbnb service fees are non-refundable. However, if a guest cancels and is eligible for a refund, you may receive a refund on the host service fee as well. To discuss your specific case, you can get in touch with Airbnb's support team.

Can you reduce Airbnb service fees?

In short, no. You can’t reduce the overall service fee. However, you can reduce your cost as the host by introducing the split-fee option. You could also consider reviewing your cancellation policy, as hosts with stricter policies typically have higher service fees.

Other costs to consider

Alongside service fees, there are many other costs for an Airbnb host. Perhaps one of the most important considerations is specialist holiday home insurance for protection against risks not covered by Airbnb's own Host Cover. At Intasure, we offer specialist insurance for Airbnb lets. This is just one of the holiday home insurance policies we can provide. It’s suitable for owners who let their property via Airbnb and similar platforms. To help you ensure you have adequate cover, whether your property is a one-bedroom flat or a large farmhouse, our policies can be tailored to suit your requirements. Policies can include £1 million building contents cover, up to £5 million liability protection, cover for damage resulting from personal theft, and even optional cover for loss of keys. Get in touch today to find out more.  

FAQs

How can you find out what your Airbnb service fee is?

You can see your exact service fee in your Airbnb transaction history. Simply locate the relevant booking and click on ‘Payout’ to see the breakdown.

Can guests see what their share of the Airbnb service fee is?

Yes. Before booking, guests can click the “Price breakdown” link on the checkout page to view a clear summary of their total price, including the Airbnb service fee.    

The sole purpose of this article is to provide guidance on the issues covered. This article is not intended to give legal advice, and, accordingly, it should not be relied upon. It should not be regarded as a comprehensive statement of the law and/or market practice in this area. We make no claims as to the completeness or accuracy of the information contained herein or in the links which were live at the date of publication. You should not act upon (or should refrain from acting upon) information in this publication without first seeking specific legal and/or specialist advice. Arthur J. Gallagher Insurance Brokers Limited trading as Intasure accepts no liability for any inaccuracy, omission or mistake in this publication, nor will we be responsible for any loss which may be suffered as a result of any person relying on the information contained herein.

Intasure® is a trading name of Arthur J. Gallagher Insurance Brokers Limited, which is authorised and regulated by the Financial Conduct Authority. Registered Office: Spectrum Building, 55 Blythswood Street, Glasgow, G2 7AT. FP825 -2024a. Exp. 23.05.2025