Airbnb has rolled out a major update to its pricing policy, now requiring all users to see the total cost of a stay—including fees and taxes—upfront by default. The change, implemented globally in April 2025, marks a significant shift from the platform’s previous practice of displaying nightly rates before revealing additional mandatory fees at checkout.
For years, Airbnb’s pricing structure drew criticism as guests discovered that the initially displayed price was far lower than the final amount due. Cleaning fees, in some cases, even rivaled the cost of a night’s stay. This led to negative reviews and press coverage, including reports highlighting how opaque pricing eroded trust in the platform. The issue wasn’t unique to Airbnb—similar ‘junk fees’ in hotels, ticketing, and other industries prompted regulators to step in. The U.S. Federal Trade Commission (FTC) announced new rules in late 2024, banning hidden fees and requiring total price transparency across short-term rental platforms.
How the New Policy Works
Under the updated policy, all mandatory fees—such as cleaning, resort, pet, or utility charges—must be integrated into the upfront price display. Guests will no longer encounter surprise costs during checkout. Airbnb has also clamped down on off-platform transactions, prohibiting hosts from requesting payments or personal data outside the platform unless legally required. Violations could result in listing suspensions or bans.
Airbnb credits its transparency push for driving nearly 300,000 hosts to remove or lower cleaning fees in 2023, with 40% of active listings dropping them entirely. The global enforcement of this policy removes the previously optional ‘total price view,’ making it the default—and only—display method for all users.
But how are hosts adjusting? Research from UNLV’s Lee Business School suggests that clearer pricing reshapes market behavior. Some hosts have cut fees to stay competitive, while others have raised nightly rates to compensate. ‘Price transparency is a game-changer for consumer choice,’ says Mark Tremblay at UNLV. ‘Guests can now compare total costs upfront, forcing hosts to rethink their strategies.’
Regulatory Pressure and Host Adaptation
The FTC’s upcoming regulations, effective May 12, 2025, leave little room for platforms to delay compliance. Airbnb’s proactive shift aligns with these rules, but the transition hasn’t been seamless. Some hosts report fewer bookings after increasing nightly rates, while others attract reservations by eliminating ancillary fees entirely.
| Change | Impact |
|---|---|
| Mandatory total price display | Reduces guest sticker shock; increases booking transparency |
| Ban on off-platform payment requests | Strengthens consumer protections |
| Restrictions on personal data collection | Enhances privacy compliance |
Airbnb’s new policies extend beyond pricing. Hosts can no longer require guests to use third-party apps for reviews, check-ins, or services unless alternatives exist. These adjustments aim to centralize transactions and safeguard user data—a response to past complaints about overly intrusive host demands.
The Road Ahead for Airbnb
While the policy shift resolves a long-standing pain point for guests, it also challenges hosts to adapt. The platform’s emphasis on transparency may level the playing field, but it also intensifies competition. As one host noted, ‘Guests are more likely to book when they trust the pricing—but we can’t hide costs anymore, so we have to be strategic.’
Airbnb’s move reflects broader industry trends. With regulators cracking down on hidden fees and consumers demanding clarity, the short-term rental market is entering an era of enforced transparency. Whether this leads to sustained trust—or new friction between hosts and guests—remains to be seen. For now, the company is betting that ending hidden fees will silence the backlash for good.
