If you’re a property owner in Merced offering mid-term rentals, 30-day or longer stays, are popular with traveling nurses and doctors, university grad students, construction crews, folks displaced by insurance claims and relocating professionals. There’s a significant change coming your way. Airbnb’s latest update to its fee structure went into effect on October 27, 2025, and it could significantly affect how much you actually earn from your listings.
This isn’t just a minor pricing tweak. It’s a shift in how Airbnb divides costs between hosts and guests, a change that will require most Merced rental owners to rethink their pricing strategy and booking platforms.
Key Takeaways
- Airbnb is phasing out its split-fee model, moving to a 15.5% host-only fee for users of property management or channel software.
- Hosts will earn less per booking unless they raise nightly rates by about 15%.
- Guests will see “all-in” pricing, which improves transparency and may increase conversion rates.
- Merced’s mid-term rental owners, especially those serving UC Merced visitors, hospital staff, and contractors should review their pricing, diversify channels, and emphasize “no hidden fees.”
- Adapting early will help maintain profits and guest trust as Airbnb rolls out its new model globally.
What’s Changing and Why It Matters
Until now, Airbnb has used a split-fee system. Hosts were charged roughly 3%, while guests paid a 14–16% service fee at checkout. This model made listings look cheaper upfront, but many guests felt frustrated seeing higher final totals due to added fees.
Airbnb’s new model simplifies that process. Effective in late October 2025, hosts using property management systems (PMS) or channel managers will transition to a host-only fee of 15.5%. Guests will no longer pay a separate Airbnb service charge. The price they see is the price they pay (before taxes).
While this transparency can improve guest satisfaction, it comes at a cost to hosts. The 15.5% cut applies not just to your nightly rate, but also to cleaning fees and any additional charges. For property owners managing multiple listings in Merced, that’s a substantial hit to net income if rates remain unchanged.
In short, Airbnb’s change may make the platform more attractive to travelers, but it means you’ll need to rework your pricing strategy to protect your margins.
A Quick Example: Why You’ll Need to Adjust Your Pricing
A Quick Example: How Your Earnings Change
Let’s put this in practical terms. Suppose your listing is priced at $100 per night.
- Under the old system:
Airbnb took about 3%, so you earned $97 per night.
Guests saw a total of around $114 (after Airbnb’s 14–16% guest fee).
- Under the new system:
Airbnb takes 15.5% directly from your side, so you’d receive $84.50.
The guest sees $100 at checkout, no extra fees.
That’s a $12.50 difference per night, or a nearly 15% reduction in your payout. To maintain your same earnings, you’ll need to raise your nightly rate by roughly 14.8%, listing at around $114.79 instead of $100.
For Merced’s mid-term rental hosts, many of whom already price competitively for 30-day-plus stays, these adjustments are essential to maintaining profitability.
Why This Matters for Merced’s Mid-Term Market
Merced’s mid-term rental market has grown steadily in recent years. Thanks to the University of California, Merced, Dignity Health Medical Group, and ongoing regional development, the city consistently welcomes traveling nurses, professors, researchers, and contract professionals.
These renters value flexibility, comfort, and transparent pricing, the very reasons Airbnb has become a top platform for stays of one to six months. But the new fee structure changes the math for hosts:
- Margins will shrink unless pricing adjustments are made.
- Competition may increase, as other hosts underprice to maintain visibility.
- Guest experience may improve, since “no extra fees” listings are simpler and more appealing.
Interestingly, this shift may benefit hosts who adapt early. Listings with all-in pricing tend to perform better in Airbnb’s search algorithm because travelers prefer clear totals. Transparency builds trust and in the mid-term rental niche, trust is everything.
Smart Strategies to Stay Ahead
With these changes coming soon, now’s the time to take action. Here are five key strategies to help you stay competitive while protecting your earnings:
- Reevaluate Your Pricing Model
Run new revenue projections based on the 15.5% host fee. Decide whether to increase rates fully or gradually to test market response. Consider adding a modest rate bump now to smooth the transition before October. - Update Your PMS or Channel Manager Settings
If you use software to sync listings across platforms (like Airbnb, Vrbo, or Booking.com), make sure it supports Airbnb-specific markups. Most systems allow you to automatically set platform-based pricing adjustments. - Communicate with Property Owners and Investors
If you manage units for others, explain how the new fee affects revenue. Provide before-and-after payout examples and show how adjusted rates maintain profitability. - Use Transparency as a Marketing Advantage
Promote your listings with phrases like “No Hidden Fees” or “All-In Pricing”. This framing can increase guest trust and click-through rates, especially for more extended stays. - Diversify Your Channels
Don’t rely solely on Airbnb. Consider listing on Vrbo, Furnished Finder, or even your own direct booking website. This spreads out platform risk and helps stabilize occupancy.
FAQs About the New Airbnb Fee
Q1: Does this apply to all hosts?
No. Only hosts using PMS or channel-management tools will automatically move to the 15.5 percent model.
Q2: When does it take effect?
Airbnb rolled it out starting October 27, 2025, with all eligible hosts transitioned by early December.
Q3: How much should I raise prices?
Multiply your total nightly rate by 1.1479 to offset the 15.5 percent cut.
Q4: Will higher rates hurt my bookings?
Possibly in the short term, but “no-guest-fee” transparency often attracts travelers looking for simplicity.
Q5: Should I keep relying on Airbnb?
It’s still a strong platform; smart owners diversify across multiple channels to reduce risk.
Your Next Move: Partner with Experts Who Understand Merced
This change reflects a broader industry trend toward simplified, transparent pricing and increased costs for hosts using automated tools. For Merced owners managing multiple furnished units or working with local property management companies, the impact could be substantial.
However, the change also aligns with guest expectations. Many travelers, especially professionals booking for work or relocation, prefer straightforward pricing with no surprises. In the long term, hosts who emphasize quality, clear communication, and fair rates are likely to attract repeat bookings and positive reviews.
Merced’s market, with its steady demand from UC Merced affiliates and healthcare professionals, provides a strong foundation for mid-term rental success as long as hosts stay proactive rather than reactive.
