Understanding the service fees that booking platforms charge hosts and guests is imperative to successfully manage your short-term vacation rental. Because fees vary from platform to platform, hosts can maximize earning potential by understanding what fees they pay and can provide better value to guests by ensuring these fees are competitive. We'll look at fees charged by Airbnb, Booking.com and Vrbo.
Service fees charged by booking platforms are typically based on the nightly rate, cleaning fee and any additional fees a host may charge (pet, linens, management, etc.), excluding applicable taxes. We refer to this total as the booking subtotal and is the amount used by the booking platform to calculate what the host and guest will pay as a service fee. A guest's total payment will include the booking subtotal, any guest service fees and applicable taxes. Here are the fees for hosts and guests by booking platform:
| Booking Platform | Host Fee Per Booking | Guest Fee Per Booking | |
|---|---|---|---|
| Airbnb | 3% OR optional host-only fee of 14-16% | 14-20% or none if host is using host-only fee | |
| Booking.com | Between 10-52% but the average is 15% | None | |
| Vrbo | 8% OR optional annual subscription of $699 plus 3% | 6-15% but we found as high as 19% |
Airbnb
Airbnb has two fee options. The first is a split fee where both the host and guest pay a percentage of the booking fee. The second is a host-only fee where the host pays a percentage of the booking fee, and the guest is not required to pay a booking fee. In the split fee model, the guest pays between 5-20% (the average is 15%) of the booking subtotal and the host pays 3% of the booking subtotal. In the host-only model, the host pays 15% of the booking subtotal. Let's take a look at the options:
Split Fee
In our example below, the guest and host service fees are calculated on the booking subtotal of $170.00. We assume a 3% Host Service Fee, a 15% Guest Service Fee, State Tax of 6% and Local Tax of 9%.
| Nightly Rate + | Cleaning Fee + | Pet Fee + | Any Other Fees = | Booking Subtotal | Host Service Fee (3%) | Guest Service Fee (15%) | State Tax (6%) | Local Tax (9%) | Booking Total | Total Guest Pays | Total Host Pays |
|---|---|---|---|---|---|---|---|---|---|---|---|
| $100.00 | $40.00 | $30.00 | $ | $170.00 | $5.10 | $25.50 | $10.20 | $15.30 | 226.10 | 221.00 | 5.10 |
Host-Only Fee
In our example below, the guest does not pay a service fee, and the host service fee of 15% is calculated on the booking subtotal of $170.00. We assume State Tax of 6% and Local Tax of 9%.
| Nightly Rate + | Cleaning Fee + | Pet Fee + | Any Other Fees = | Booking Subtotal | Host Service Fee (15%) | Guest Service Fee (0%) | State Tax (6%) | Local Tax (9%) | Booking Total | Total Guest Pays | Total Host Pays |
|---|---|---|---|---|---|---|---|---|---|---|---|
| $100.00 | $40.00 | $30.00 | $ | $170.00 | $25.50 | $0 | $10.20 | $15.30 | 221.00 | 195.50 | 25.50 |
Booking.com
Booking.com does not charge guests a booking fee. Instead, the host incurs all booking fees. This can range from 10-52% but the average is 15% of the booking subtotal. In our example below, the guest does not pay a service fee, and the host service fee of 15% is calculated on the booking subtotal of $170.00. We assume State Tax of 6% and Local Tax of 9%.
| Nightly Rate + | Cleaning Fee + | Pet Fee + | Any Other Fees = | Booking Subtotal | Host Service Fee (15%) | Guest Service Fee (0%) | State Tax (6%) | Local Tax (9%) | Booking Total | Total Guest Pays | Total Host Pays |
|---|---|---|---|---|---|---|---|---|---|---|---|
| $100.00 | $40.00 | $30.00 | $ | $170.00 | $25.50 | $0 | $10.20 | $15.30 | 221.00 | 195.50 | 25.50 |
Vrbo
Vrbo has two fee options. The first is an annual subscription plan for hosts which costs $699.00 per year. By paying for the subscription, hosts avoid the pay-per-booking commission fee but pay a 3% payment processing fee. The second is a pay-per-booking option where the guest pays 6-15% (but we found bookings with a 19% fee) of the booking subtotal and the host pays a 5% commission of the booking subtotal and a 3% payment processing fee of the total payout.
Annual Subscription
In our example below, the guest pays a service fee of 15% that is calculated on the booking subtotal of $170.00. We assume State Tax of 6% and Local Tax of 9%. The host would not pay a host service fee but would pay a payment processing fee of 3%. In this example, we assume the host receive the local tax as a passthrough payment.
| Nightly Rate + | Cleaning Fee + | Pet Fee + | Any Other Fees = | Booking Subtotal | Payment Processing Fee (3%) | Guest Service Fee (15%) | State Tax (6%) | Local Tax (9%) | Booking Total | Total Guest Pays | Total Host Pays |
|---|---|---|---|---|---|---|---|---|---|---|---|
| $100.00 | $40.00 | $30.00 | $ | $170.00 | $5.10 | $25.50 | $10.20 | $15.30 | $226.10 | $221.00 | $5.10 |
Pay-Per-Booking
In our example below, the guest and host pay a service fee that is calculated on the booking subtotal of $170.00. We assume a 5% Host Service Fee, a 3% payment processing fee, a 15% Guest Service Fee, State Tax of 6% and Local Tax of 9%.
| Nightly Rate + | Cleaning Fee + | Pet Fee + | Any Other Fees = | Booking Subtotal | Host Service Fee (5%) | Payment Processing Fee (3%) | Guest Service Fee (15%) | State Tax (6%) | Local Tax (9%) | Booking Total | Total Guest Pays | Total Host Pays |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| $100.00 | $40.00 | $30.00 | $ | $170.00 | $8.50 | $5.10 | $25.50 | $10.20 | $15.30 | $226.10 | $221.00 | $13.60 |