Change is never easy—especially when it affects your bottom line. With Airbnb shifting from a split host/guest fee model to a single service fee for hosts using property- or channel-management software (effective October 27) , many hosts are left wondering: How will this affect my earnings? How should I adjust my pricing?
That’s where Frontier Property Management steps in. Below is how we proactively address the challenges Airbnb’s new fee model presents and help our hosts stay competitive and protected.
What’s Changing: The Move to a Single Fee (Airbnb’s Update)
First, a quick recap of the shift:
- Under the old model, hosts paid a 3% fee (deducted from the listing price), and guests paid a 14.1%–16.5% service fee on top of what hosts set.
- Under the new model (for hosts using property-management software), Airbnb will apply a single service fee of 15.5% to the price hosts set. That means guests pay exactly the listing price.
- To maintain your previous net payout, hosts must adjust list prices upward. For example: If you used to list at $100 and earned $97 (after fees), you now need to list at about $115 so that after 15.5% you again net roughly $97.
- If you leave your price unchanged, your net payout will drop (and guests would pay less).
In short: pricing strategy must shift — and fast.
The Risks for Hosts Who Go It Alone
Without support, hosts may face:
- Underpricing or miscalculating payouts. If you forget to adjust your rates, you could end up earning significantly less.
- Poor competitive positioning. If your pricing doesn’t align with market or guest expectations under the new model, you may lose bookings.
- Manual labor stress. Adjusting per-listing fees, cleaning fees, discounts, and promotions across platforms is tedious and error-prone.
- Transparency confusion. Guests now see what hosts set. That changes how pricing appears compared to before — and poorly formatted prices might deter bookings.
That’s exactly why property management companies like ours are more needed than ever.
How Frontier Property Management Handles the Transition (Step by Step)
Here’s how Frontier ensures our host partners aren’t blindsided by Airbnb’s fee changes:
1. Proactive Pricing Audit & Adjustment
- Before October 27, we audit all active listings and compare historical net payouts to what they’ll be under the new 15.5% fee.
- We calculate recommended new list prices to maintain the same net income for each property.
- If market conditions require, we also run sensitivity checks (e.g. will a slightly lower net yield lead to better occupancy that compensates?).
2. Bulk & Automated Updates via Software
- Because our host clients use our property management platform (or channel manager), we can push bulk price changes across Airbnb, VRBO, Booking.com, etc.
- We coordinate timing so that on the transition date, listings flip to the new pricing model seamlessly, with minimal downtime or confusion.
- We double-check discount codes, weekly/monthly rates, seasonal promotions — everything that could be impacted is swept.
3. Transparent Reporting & Communication
- Frontier sends every host a “before vs. after” projection showing net revenues under both models, so you see exactly how your earnings are affected.
- We provide guest-facing price visibility checklists so you can confirm what guests see matches your expectations.
- If any listing ends up projecting a revenue hit (e.g. due to local market constraints), we highlight it, and present options: raise the nightly rate further, reduce fees (like cleaning), adjust minimum stays, etc.
4. Market-Aware Pricing Adjustments
- We monitor competitive pricing in each market so you don’t price yourself out of the market in your quest to maintain net income.
- If similar properties lower their rates because guests perceive more value under the new model, we can adjust yours dynamically to stay competitive.
- We balance net yield (your take) and occupancy — sometimes a slight reduction in net per night, offset by more nights booked, can yield better overall returns.
5. Ongoing Monitoring & Corrections
- The first few weeks after the change are critical; we keep a close eye on booking flow, cancellations, and guest behavior.
- If we detect anomalies (sudden drop in bookings, pricing that’s not matching performance), we intervene quickly.
- We send you regular dashboards comparing your “pre-change baseline” to actuals — so you’re never guessing.
6. Host Education & Support
- We hold Q&A webinars and training sessions so hosts understand the new fee model, pricing logic, and our adjustment process.
- We maintain a help desk specifically for fee-structure–related issues during the transition period.
- We publish guides, FAQs, and checklists — e.g. “What to expect on October 27,” “How to confirm your payout matches your expectation,” etc.
Why Using a Proactive Management Partner Matters More Now
Airbnb’s move to a single-fee model reduces friction for guests, but it shifts pricing complexity squarely onto hosts. Mistakes or missteps are costly: you might lose revenue or bookings.
By contrast, with Frontier Property Management:
- You get data-driven, hands-free pricing alignment
- You don’t have to worry about manually reconfiguring dozens of listings
- You maintain greater certainty over what your net revenue will be
- You stay competitive in your market
- You have support during what’s a potentially disruptive transition

