Direct booking service fees affect both what guests pay at checkout and what you receive as a payout. Hospitable gives you control over how these fees are applied so you can align your pricing with your business model.
You can manage your service fee setup at any time in:
Direct Bookings→ Booking Policies → Service Fees
The Booking Policies page in Hospitable with the Service Fees assigned to each policy
How Service Fees Work
Service fees are applied differently depending on your Direct plan and selected fee model.
Direct Premium
You can choose between two fee structures:
Split fee (default):
Guests pay a 4% service fee
Hosts pay a 3% host fee (deducted from payouts)
Host-only fee:
Guests do not see a service fee
A 7% fee is deducted from your payout instead
You can switch between fee models at any time through Direct Bookings→ Booking Policies → Service Fees. Changes apply to new bookings only. Existing reservations keep the original fee structure.
Direct Basic
Does not include configurable service fee models
A small host fee applies, plus standard payment processing fees
Guests do not see a separate service fee
To keep your payout consistent on Direct Basic, consider adjusting your Direct markup rate to account for fees. Use markup rates to increase prices pushed to booking platforms, ensuring your net payout remains consistent after fees. Include markups on nightly rates, cleaning fees, and other host-charged fees to maintain accurate payouts.
How Fees Affect Guest Price and Payout
Service fees are calculated on different parts of the booking:
Guest service fee (4%)
Applied to nightly rate + fees (like cleaning)
Not applied to taxes
Host fee (3%) or host-only fee (7%)
Applied to the total guest payment, including:
Nightly rate
Fees
Taxes
Guest service fee (if applicable)
This means:
Higher cleaning fees increase the guest service fee
Taxes do not increase the guest fee, but do affect your host fee
Example: How Fees Are Calculated
Example booking:
3 nights at $200/night = $600
Cleaning fee = $150
Tax = 10%
Split Fee Model (4% guest + 3% host)
Guest service fee: 4% of $750 = $30
Guest pays: $855 total
Host fee: 3% of $855 = $25.65
Host payout: $799.35
Host-Only Model (7%)
Guest pays: $825 (no visible service fee)
Host fee: 7% of $825 = $57.75
Host payout: $767.25
The split model typically results in a higher payout, while the host-only model creates a simpler guest price.
Choosing the Right Fee Model
Each model has trade-offs:
Split fee model
Higher payout
Guests see a service fee line item
Closer to OTA-style pricing breakdown
Host-only model
Cleaner guest pricing (no extra fee shown)
Lower payout unless adjusted
Better for conversion-focused pricing
To offset the 7% host-only fee, many hosts increase their Direct markup rate by the same percentage.
To set markup rates for Direct, go to Settings > Preferences > Properties, scroll to Platform Markup Rates, add your desired markup rate (e.g., 7%), and save changes.
Why Guest Prices May Look Different
Guests may see a higher total than your base nightly rate because the final price includes:
Cleaning fees
Taxes
Service fees (depending on your setup)
For example, a $600 stay may appear as a higher total once all components are included.
Frequently Asked Questions
Can I remove the guest service fee?
Yes. Switch to the host-only (7%) model to remove the guest-facing fee and include it in your payout deduction.
Are service fees applied to cleaning fees?
Yes. The guest service fee (4%) includes cleaning fees in its calculation.
Do taxes affect service fees?
Taxes are not included in the guest service fee
Taxes are included when calculating host fees
Why is my payout lower than expected?
Your payout is affected by:
Your selected service fee model
Taxes and fees included in the booking
Any markup or pricing adjustments
Why do guests still see a service fee?
If guests still see a service fee at checkout, the property is likely assigned to a booking policy using the split fee model.
To remove the guest-facing service fee:
Go to Direct Bookings → Booking Policies
Open the booking policy assigned to the property
Change the service fee model to:
Host-only fee (7%)
Save your changes
You can also assign the property to another booking policy already configured with host-only fees.
Changes apply only to new bookings. Existing reservations keep the original fee structure.
Why didn’t my cleaning fee markup apply?
Direct markup rates only affect nightly rates pushed through pricing synchronization.
Cleaning fees and other additional fees are managed separately in Hospitable and are not affected by channel markup rates.
To change your cleaning fee:
Go to Properties → Pricing → Fees
Update the cleaning fee directly
Save your changes
Platform markup rates do not apply to cleaning fees or additional guest fees.
How do service fees compare to OTAs like Airbnb?
Unlike Airbnb’s host-only fee model, Hospitable allows:
A split fee model (guest + host)
A host-only model
This gives you more control over how pricing is presented.
Where Service Fees Fit in Booking Policies
Service fees are part of your overall booking setup, along with:
Cancellation policies
Payment terms and schedule
Taxes
All of these are applied at the time of booking and determine the final price and payout.
Booking policies are locked in at the time of booking and cannot be changed afterward.
What’s Next
After setting up your service fees, if you haven't yet, you may want to:
Configure your cancellation policies
Adjust your payment schedule
Review your Direct pricing strategy
Also see: Direct Cancellation Policies