What Is Vrbo and Its Role in Short-Term Rentals?

Summary

What is Vrbo? 

A major online travel agency (OTA) and short-term rental (STR) marketplace specializing in whole-home vacation rentals. Originally "Vacation Rentals by Owner," Vrbo connects property owners with travelers seeking complete homes rather than shared spaces.

Why it matters

Vrbo's focus on entire homes makes it particularly valuable for hosts targeting families, groups, and longer-stay travelers looking for full properties rather than shared spaces.

Who's using it 

Hosts and property owners, professional property managers, and real estate investors focused on whole-home rentals.

When you'll see it

You'll encounter Vrbo in discussions about listing strategy, platform diversification, and reaching the family travel market. It's often compared with other major STR platforms when evaluating where to list properties.

Vrbo Overview

Vrbo (Vacation Rentals by Owner) is one of the oldest online travel agencies (OTA), founded in 1995 and specializing in vacation rentals. After merging with HomeAway in 2020, it has become one of the largest online travel agencies in the short-term rental space, focusing on whole-home rentals. The platform connects property owners and managers with travelers seeking entire homes or apartments for their stays, particularly appealing to families and larger groups looking for complete properties rather than shared spaces.

How Vrbo Works

Vrbo connects property owners and travelers for short-term rentals. Here's a quick breakdown:

For property owners:

• Create detailed listings with dynamic pricing, high-quality photos and custom house rules.
• Manage your calendar, set booking requirements, and handle guest communications through the host dashboard.
• Choose Vrbo Instant Book for automatic approval or 24-hour review of booking requests.
• Access performance analytics and market insights to optimize your listing.

For travelers:

• Search using filters for location, price range, dates, number of guests, and specific amenities.
• View detailed property information, including reviews, house rules, and cancellation policies.
• Book and pay securely through Vrbo's protected payment system.
• Communicate directly with hosts through the platform's messaging system.

Learn more about how Vrbo works.

Vrbo vs. Airbnb

Here’s how Vrbo compares to Airbnb:

• Focus: Vrbo exclusively offers entire homes, while Airbnb features a wider variety of rental types, including shared spaces and private rooms.
• Target audience: Vrbo appeals to families and larger groups seeking spacious accommodations. Airbnb attracts a broader range of travelers, including solo guests and those looking for unique stays.
• User experience: Airbnb offers a more intuitive and user-friendly interface. Vrbo emphasizes robust property protection for owners but has a steeper learning curve.

For a more in-depth comparison between these platforms, check out our article on Airbnb vs Vrbo for owners.

How to List on Vrbo

Getting started as a Vrbo host involves a few key steps:

1. Create a host account at vrbo.com/host and choose between annual subscription or pay-per-booking 

2. Set up your listing:

• Add high-quality photos and detailed property descriptions
• Set house rules, check-in procedures, and guest requirements
• Configure your calendar and customize pricing
• Choose between Instant Book or 24-hour review period

3. After listing approval, you can start accepting bookings and managing your property through Vrbo's host dashboard, which includes tools for guest communication, booking management, and performance tracking.

Note: Properties must meet Vrbo's basic requirements, including safety standards and accurate representation of the space. Most importantly, you must own or have permission to rent out the property you're listing.

If you’re planning to list your property, check out our article on how to list your vacation rental on Vrbo.

Vrbo Fees

Vrbo charges fees to both travelers and property owners:

For travelers:

• Service fee: Typically ranges from 6% to 15% of the booking total. This fee covers the cost of secure transactions, customer support, and platform maintenance.

For property owners:

Pay-per-booking model:

• Commission fee: 5% of the rental amount and any additional fees (like cleaning or pet fees).
• Payment processing fee: 3% of the total payment amount, including taxes and refundable damage deposits.

Annual subscription model:

• Flat fee: $699 per year for unlimited bookings, which can be more cost-effective for properties with high occupancy rates.

Learn more about Vrbo’s fee model.

Vrbo Cancellation Policies

Cancellation terms are set by the property owner and vary by listing. Common policies include:

• Flexible: Full refunds for cancellations within a specified time.
• Moderate: Partial refunds based on cancellation timing.
• Strict: Limited or no refunds for late cancellations.

Always check the cancellation policy before booking to avoid unexpected charges.

For hosts, Vrbo offers opportunities to grow their business and stand out, especially by achieving Premier Host status, which rewards exceptional hosting. Learn more about the benefits and requirements of becoming a Premier Host in our Vrbo Premier Host Program Guide.

Now that you understand Vrbo's role in the short-term rental market, you're probably getting closer to choosing if this is the right platform to list your vacation rental. Just remember: successful hosts often list on multiple platforms to maximize their reach.