Vacation rental platforms have transformed how people travel and earn money from their properties. While Airbnb dominates the conversation, many property owners quietly prefer Vrbo for hosting their rentals.
The choice between these platforms isn’t always obvious to guests. Both offer similar services – connecting travelers with homes, apartments, and vacation properties worldwide.
However, property owners face different experiences, fees, and policies depending on which platform they choose. These differences significantly impact their bottom line and hosting experience.
Some hosts use both platforms simultaneously, while others exclusively stick with Vrbo. Their reasons range from financial considerations to guest quality and platform policies.
Understanding why hosts choose Vrbo over Airbnb reveals important insights about the vacation rental industry. These factors affect not just property owners but also the guests who book through these platforms.
Whether you’re considering becoming a host yourself or simply curious about the rental market, knowing these platform differences helps explain why the vacation rental landscape looks the way it does today.
Which is more expensive for hosts, Vrbo or Airbnb?
Airbnb is generally more expensive for hosts due to their service fee structure. Airbnb charges hosts 3-5% per booking, but also takes an additional 14-16% service fee from guests, which can reduce booking rates.
Vrbo offers two pricing models – either an annual subscription fee of around $499 or a pay-per-booking fee of 8%. The subscription model becomes cost-effective for hosts with consistent bookings throughout the year.
For hosts with multiple properties or high booking volumes, Vrbo’s subscription option typically saves significant money compared to Airbnb’s per-booking fees. However, hosts with only occasional bookings might find Airbnb’s lower host-side percentage more economical.
The actual cost difference depends on your booking frequency, nightly rates, and chosen fee structure. Calculate both platforms’ fees based on your expected annual bookings to determine which works better financially.
How can a host get signed up with VRBO?
Getting started on Vrbo is straightforward and takes about 30-60 minutes to complete. Visit Vrbo.com and click the “List Your Property” button to begin the signup process.
You’ll create an account using your email address and basic contact information. Then you’ll provide details about your property including location, size, amenities, and house rules.
Upload at least 5-10 high-quality photos showing your property’s best features. Clear, well-lit images significantly impact booking rates, so take time with this step.
Set your nightly rate, cleaning fees, and availability calendar. You’ll also choose between Vrbo’s annual subscription model ($499/year) or their pay-per-booking option (8% commission).
Complete the payment setup by connecting your bank account for receiving guest payments. Vrbo will verify your identity and property details before activating your listing.
Once approved, your property goes live and appears in search results. The entire process typically takes 1-2 business days from submission to activation.
What are the advantages of Vrbo for hosts?
Lower Fees: Vrbo’s annual subscription model ($499/year) often costs less than Airbnb’s per-booking fees for active hosts. This predictable pricing helps with budgeting and maximizes profits.
Whole-Property Focus: Vrbo exclusively lists entire homes rather than shared spaces. This attracts families and groups looking for complete privacy, reducing issues common with room-sharing arrangements.
Longer Stays: Vrbo guests typically book week-long or extended vacations rather than quick weekend trips. Longer bookings mean less turnover, fewer cleanings, and more stable income.
Family-Oriented Guests: The platform attracts responsible family travelers who tend to respect properties better. These guests often cause less wear and tear compared to party-focused short-term renters.
Professional Host Tools: Vrbo provides better support for property managers handling multiple listings. Their interface and policies cater to professional hosts rather than casual room renters.
Established Trust: Being part of Expedia Group gives hosts access to a massive travel network and established credibility with travelers.
What are the disadvantages of Vrbo for hosts?
Smaller User Base: Vrbo has significantly fewer users than Airbnb, meaning potentially fewer bookings. Your property might sit empty longer, especially in competitive markets.
Less Visibility: Airbnb’s massive marketing budget and brand recognition mean more travelers search there first. Getting discovered on Vrbo requires more effort and patience.
Upfront Subscription Cost: The annual $499 subscription fee must be paid regardless of booking success. This creates financial risk if your property doesn’t rent consistently.
Fewer Instant Bookings: Vrbo guests often prefer to communicate before booking, slowing down the reservation process. This extra step can lose impatient travelers to competitors.
Limited Flexibility: Vrbo’s whole-property focus means you can’t rent individual rooms. This prevents hosts from maximizing income from larger homes with multiple bedrooms.
Stricter Cancellation Policies: Vrbo’s policies favor guests more heavily in cancellation disputes. Hosts sometimes lose income when guests cancel, even within restricted timeframes.
Should I promote my Vrbo listing outside of the platform?
Yes, promoting your Vrbo listing outside the platform can significantly increase bookings and reduce dependence on platform fees. Creating your own website or social media presence gives you direct access to guests without paying commission.
Share your listing on Facebook, Instagram, and local tourism groups where potential guests already spend time. Many hosts successfully book repeat guests directly after their first Vrbo stay by staying in touch.
However, be careful with Vrbo’s terms of service regarding off-platform bookings. While promoting your property externally is allowed, trying to move existing Vrbo conversations off-platform violates their rules.
Consider creating a simple booking website where you offer slightly lower rates than Vrbo since you’re not paying platform fees. This incentivizes guests to book directly while you keep more profit.
Local tourism boards, travel blogs, and vacation rental directories also provide free or low-cost promotion opportunities. The more places your property appears online, the better your booking chances.
Diversifying your marketing beyond Vrbo protects your business if platform policies change unexpectedly.
Is Vrbo owned by Expedia?
Yes, Expedia Group owns Vrbo after acquiring the platform in 2015 for $3.9 billion. This purchase made Vrbo part of one of the world’s largest online travel companies.
The ownership brings significant advantages for hosts. Vrbo properties get exposure across Expedia’s entire network of travel sites, including Hotels.com, Travelocity, and Orbitz. This dramatically increases potential bookings beyond what Vrbo alone could provide.
Hosts also benefit from Expedia’s decades of experience in online travel booking. The company’s payment processing, customer service systems, and fraud protection are proven and reliable through years of operation.
Being owned by a major corporation provides stability and resources that independent platforms simply can’t match. Hosts worry less about the platform suddenly shutting down or making drastic changes that hurt their business.
However, some hosts report that Expedia’s corporate structure makes customer service slower than smaller platforms. The large company bureaucracy can frustrate hosts who need quick resolution to urgent problems.
Overall, Expedia’s ownership gives Vrbo credibility and massive reach, though it sometimes sacrifices the personal touch and responsiveness that smaller, independent platforms might offer.
Final Thoughts
Choosing between Vrbo and Airbnb ultimately depends on your specific property and hosting goals. Neither platform is universally better – each offers distinct advantages that appeal to different types of hosts.
Vrbo attracts hosts who value whole-property rentals and longer stays from family travelers. The platform’s focus on complete homes rather than shared spaces creates a different guest experience and hosting environment.
Lower service fees and better support for property managers make Vrbo particularly appealing for professional hosts. These financial advantages add up significantly over time, especially for owners managing multiple properties.
However, Airbnb’s larger user base means potentially more bookings for some properties. The trade-off between reach and profitability requires careful consideration based on your market and property type.
Many successful hosts use both platforms to maximize exposure while comparing performance. This dual approach helps identify which platform works better for their specific situation.
Your decision should reflect your property characteristics, target guests, and business priorities. Take time to evaluate both platforms’ terms, fees, and audiences before committing to one or diversifying across both.
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