Airbnb’s New Single-Fee Model: What Denver Property Owners Need to Know

Big Changes Ahead: Airbnb’s Upcoming Pricing Overhaul for Property Managers

The world of short-term rentals never stands still, and if you manage properties in Denver or nearby foothills, Airbnb’s latest announcement is a signal that more adjustments are on the way. Starting October 27, 2025, Airbnb’s pricing model for most property managers is getting a significant update — and that means both hosts and guests will notice some real changes in how fees are presented and paid.

Here in Colorado, where there’s a thriving mix of professionally managed vacation rentals and independent host-run homes, these tweaks matter. The new rules not only change who pays what, but also could shape how owners price their units to stay competitive, and how guests shop for their getaway stays.

Understanding the Old Split-Fee vs. the New Single-Fee System

Up until now, most Airbnb listings followed a split-fee setup: homeowners paid one small fee, while guests were charged their own service fee on top of the nightly rate. For instance, if a Denver property was listed at $100 per night, guests might see a final bill of around $115 thanks to a guest service fee that usually landed between 14% and 16.5%. At the same time, Airbnb docked around 3% from the host’s payout for their own operational fee.

In concrete terms, the host would pocket about $97 per night, while the guest saw that $15 surcharge tacked on at checkout. Not the world’s most transparent or straightforward way to handle things — and something both hosts and travelers have pointed out as a pain point for years.

Come late October, Airbnb is pressing “reset” for most property managers by moving to a single-fee structure. This means guests will no longer see that separate service charge at checkout. Instead, the platform will require property managers to pay a standard fee of 15.5% on their side.

What Does This Look Like in Practice?

Let’s walk through the most likely scenario for a Denver property manager. If you want to keep collecting the same net amount as before, you’d need to raise your nightly rate so that, after Airbnb takes its 15.5%, you still take home your usual payout. So if your property used to be $100 per night (guest pays $115, you get $97), you’d now nudge your rate up to $115 per night instead. Airbnb then takes its fee — and you’re left with the same $97.

The big change: from the guest’s view, the nightly rate is now all-in, with no surprise fee breakdowns popping up at checkout. Pricing becomes simpler to compare and more predictable — a move that some local guests and owners have been requesting for ages.

Choosing Not to Raise Rates: What Happens?

Of course, not everyone may want to hike their nightly price. Some owners might try to undercut the market to attract price-sensitive travelers, especially with so much competition in destination cities like Denver and Boulder. However, here’s the catch: if a manager continues to advertise their night at $100 but pays the new 15.5% fee, they’ll walk away with just about $85 — a meaningful cut from previous earnings.

This trade-off could matter a lot for those balancing occupancy and revenue — a common challenge for many who manage rentals in the Front Range. Whether it makes sense comes down to property goals and market positioning. In some cases, dropping the price to gain more bookings might seem worth the smaller payout, but for others, it could eat into margins too far.

Can Individual Hosts Opt In?

Airbnb isn’t forcing individual (non-professional) hosts to adopt the new single-fee method. But, if they choose to use it, those listings will also show guests a single, up-front price with no added Airbnb fee at checkout. There’s a good chance that many owner-operators may opt in voluntarily, especially if it helps their listing stand out in search results — because some travelers actively seek out rentals with “no confusing service fees.”

Does This Impact Host Visibility in Search?

One question that’s bound to come up is whether switching to the new fee model helps or hurts you in Airbnb’s search rankings. According to third-party analysts like AirDNA, the platform’s search algorithm mostly considers total price — regardless of how the fee is split. Guests will only see the final payout figure, with the nitty-gritty details staying behind the scenes until payment.

In short, moving to the single-fee model doesn’t appear to hurt visibility, and it might even help some hosts connect with those who appreciate upfront, transparent pricing. After all, when it comes to booking a memorable weekend in downtown Denver or a foothills retreat, “no hidden fees” listings often get extra attention.

Why Is Airbnb Making This Shift?

Airbnb states that the main motivation behind this move is greater transparency for guests. The existing system, with its last-minute fee surprises, often frustrated people who felt the final bill was unclear. With this update, guests see exactly what they’ll pay before taxes, and property managers have a clearer picture of what to expect from each reservation.

“We’ve heard from both guests and hosts that Airbnb’s pricing can be complex so we’re simplifying our service fee structure to help make pricing clearer and more transparent for guests while giving hosts full control over the final price displayed and paid by guests, before taxes.” — Airbnb spokesperson

By streamlining service charges, owners regain some flexibility over listings — and guests get a more straightforward booking experience. In busy rental markets like central Denver, this could ease confusion at checkout and reduce abandoned carts from price shock.

The Local Reaction: Concerns and Opportunities for Property Owners

Not all hosts are thrilled, though. Advocacy groups and seasoned hosts — including local voices in Denver — argue that the new model might tilt power toward professional managers with access to dynamic pricing technology and away from smaller, independent operators.

Some property tech consultants point out that property management companies (especially those integrated with automation systems) can adjust prices quickly and keep up with changes, while solo owners may struggle to adapt as fast.

There’s also a sentiment among some long-time hosts that Airbnb’s focus is drifting more towards guest experience than host community. The centralized fee could make things easier for travelers but alter the balance of benefits on the host side.

Here’s a scenario playing out in real time: imagine two Denver properties — one run by a management company, and one by an individual owner. If the company updates to the single-fee model, guests browsing for a last-minute escape to downtown won’t see extra fees during booking. But if a homeowner sticks to the old setup, their property might look more expensive at checkout, even if the starting nightly rate was lower.

What This Means for the Broader Market

Industry veterans note that this update from Airbnb could trigger ripple effects across the vacation rental landscape. Some analysts believe competitors like Booking.com and Vrbo will revisit their own pricing and service fee policies in response. Historically, Booking and Expedia have included some transaction costs in their nightly price rather than breaking out a separate fee, so Airbnb’s updated structure could push everyone towards a unified, upfront cost approach.

Carl Shepherd, who helped launch HomeAway, suggests that Airbnb’s previous split-fee gave some hosts a false sense of “free” listings, while the real costs were simply disguised. Now, with the new policy, the payment breakdown becomes much clearer. Savvy property owners watching these changes unfold — especially those invested in Colorado’s robust short-term rental market — should watch how other platforms respond in the coming months.

“It exposes the limitations of pretending you can be both a tech platform and a community. Community will be tough to maintain.” — Carl Shepherd, HomeAway co-founder

Another local concern: as pricing models become more transparent, guests may begin questioning why some listings have no visible fees while others do — creating potential trust issues or confusion.

Looking Ahead: Strategic Choices for Denver Hosts and Property Managers

If you manage short-term rentals in the Denver metro or surrounding areas, the single-fee update means one thing above all: be proactive and review your pricing strategy. Evaluate what your competitors are doing, check how your occupancy rates are trending, and don’t hesitate to run test listings to see how the changes might affect booking volume and guest behavior.

It’s also a chance to revisit your property’s marketing message. Highlighting “no service fees” and “transparent, all-inclusive pricing” might help draw attention from savvy travelers comparing options for their next Colorado staycation or out-of-state visitors looking to keep costs simple.

Finally, as these changes roll out, communication with guests becomes even more important. Setting clear expectations and providing upfront breakdowns helps build trust and encourage repeat visits — priorities that make a difference in a crowded rental landscape.

Staying up-to-date and adapting to shifts like these is the key to keeping rental properties successful, especially with Denver’s ever-evolving market. For property managers and hosts alike, the new single-fee model isn’t just a challenge; it opens the door for smarter pricing, clear guest communication, and a better experience on both sides of the booking.