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Weekly STR News Round Up #6

By Alkebulan Homes & Villas Ltd
2025-10-27
This week’s Alkebulan Homes & Villas Short-Term Rental Industry Update covers key platform policy changes reshaping the market. Notably, Airbnb’s October 25 service fee overhaul moves most hosts—especially those using property management software—to a host-only fee of 15.5%, replacing the previous split fee model. Alongside updates from VRBO, Booking.com, and evolving East African regulations inspired by EU rental rules, this issue highlights critical trends and actionable strategies for homeowners and property managers navigating a more regulated, automated, and guest-centered rental landscape.
Weekly STR News Round Up #6

Industry Headlines & Global Platform Trends

Airbnb

Airbnb rolled out major policy changes in October 2025, including new cancellation policies—introducing “Firm” and “Limited” options and a 24-hour free cancellation window to boost guest confidence (Rentalscaleup ShortTermRentalz Rentalscaleup).

Airbnb Service Fee Update (October 25, 2025)

The latest service fee structure now requires most hosts—especially those using property management software—to pay a single host fee of 15.5% (16% for Brazil), replacing the traditional split model (Airbnb Help Center).

Guests pay a service fee of 14.1% to 16.5% of the booking subtotal, adjusted for currency and stay length.

Service and Experience bookings carry separate 15% and 20% fees. VAT may apply (Airbnb Help Center).

These changes emphasize transparent, streamlined host and guest costs, aligned with platform updates and compliance requirements.

VRBO

VRBO introduced strict host cancellation penalties (October 2025), including full penalties and listing suspension for hosts not providing guest access. VRBO also automates refunds for guests denied entry (VRBO News Facebook Policy Update Facebook VRBO Update).
Guesty’s improved VRBO API syncing supports multi-channel managers (Guesty New Releases).

Booking.com

Booking.com expanded pre-booking messaging, multi-calendar tools, and AI-powered listing optimization via Guesty updates, giving managers easier guest engagement and improved channel automation (Guesty New Releases).

Guesty

Guesty introduced automation, AI-generated content, enhanced payment logic, and the Guesty Shield liability cover in its latest platform refresh (Guesty New Releases).

East Africa & Regulatory Watch

Kenya & Regional Developments


It's speculated that Kenyan regulators are watching the EU’s new short-term rental rules as possible templates for host registration, listing limits, and data sharing (Streamlinefeed).

Rapid investment continues across Kenya and Tanzania’s coast lines, with Diani, Malindi, Watamu and Zanzibar highlighted as hot spots (Diaspora Messenger Kenyan Wallstreet Erets Group).

Kenya’s Finance Act 2025 has enabled KRA to begin taxing foreign platforms such as Airbnb and Booking.com, signaling stricter oversight for STR income (Streamlinefeed KRA).

Recommendations: Navigating Airbnb’s New Management Fees

Review Pricing Models: Adjust nightly rates and fees to ensure the new 15.5% host fee is covered, maintaining profitability (Airbnb Help Center).

Communicate Clearly: Update guest messaging and owner statements to explain any price changes due to fee adjustments.

Diversify Platforms: Compare VRBO and Booking.com for alternative fee structures and explore new distribution strategies.

Promote Longer Stays: Consider targeting bookings over 28 nights, which may have lower guest fees for better margins.

Ensure Compliance: Register properties and comply with Kenyan regulatory requirements to avoid penalties (Kenya Times).

Market & Platform Insights

Africa’s STR market grew 25% year-on-year through 2024 (Hotel News Resource).

Regulatory and fee changes are shifting the landscape—property managers who adapt quickly will remain competitive in an increasingly professional sector.

Sources & Further Reading

Airbnb Service Fee Notification (Oct 25, 2025)

Rentalscaleup—Airbnb Cancellation Update

ShortTermRentalz—Airbnb Cancels Strict Policy

Rentalscaleup—New Airbnb Rules

Guesty—Platform Release Notes

VRBO Host Policy Update

Diaspora Messenger—East Africa Coast Investment

Kenya Times—STR Regulation News

Kenya News—TRA Streamlining Airbnbs

Hotel News Resource—Market Analytics

Streamlinefeed—EU STR Rules

Streamlinefeed—KRA STR Tax

Kenyan Wallstreet—Real Estate Trends

Erets Group—STR ROI Guide

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