Vrbo Hosting Fees
Vrbo offers two pricing models; pay-per-booking fees or an annual subscription. Generally, the size of your business determines which pricing model is the most cost-efficient.
Pay-per-Booking Fee
The pay-per-booking model charges a commission and payment-processing fee per booking. The number of annual bookings and your rate determines how much you will pay the company. The fees do not apply to Cancellation Protection or Property Damage Protection. But they do apply to all charges your guests must pay you, including:
- Cleaning fees
- Extra guests
- Pet fees
- Boat fees
- Refundable security deposits
- Taxes and VATS
A benefit of the pay-per-booking model is not having an upfront cost. You only pay Vrbo a percentage of what you earn.
Annual Fee
The annual subscription fee covers unlimited bookings for the whole year. You must pay this fee upfront, no matter how much you earn in the upcoming year. A couple of the benefits of the annual subscription fee include:
- Not calculating percentages for each listing, although Vrbo does this for you automatically.
- Can be more cost-effective if you have high-value properties.
Vrbo offers a 14-day window for canceling annual subscriptions should you switch to the pay-per-booking model. The annual subscription fee is $499. The yearly subscription could be a cost-efficient payment model if you have a high-value property and plan to earn more than $6,250 annually.
Vrbo Commission Structure
If you plan to make less than $6,250 or more annually, you could save money with the pay-per-booking model. The pay-per-booking model has a commission and payment processing fee.
- The commission fee is five percent of the rental amount and any additional charges. This percentage may be higher if bookings originate from Vrbo’s expanded distribution partners.
- The payment-processing fee, or credit card processing fee, is three percent of the amount you receive in payments. But Vrbo reimburses the processing fee for damage deposits when you refund guests.
If you use property management software integration, there is an additional fee and Vrbo also charges a five percent booking fee for reservations made through other Vrbo-owned websites. In December 2020, the company provided another option. Vrbo may enforce a 15% commission per booking if:
- You connect with Vrbo through a channel manager.
- You have a commercial contract.
- You are a property manager with multiple properties.
- You don’t reside in the United States.
However, the guests no longer have a service fee, which makes these rentals more desirable.
Vrbo Fees for Guests
Guests’ service fees vary from six to 15 percent of the reservations’ subtotal. Guests may also be subject to cancellation charges depending on your policies.
Vrbo has the following options:
- No Refund: Reservations are non-refundable under any circumstances.
- Strict: Reservations are fully refundable up to 60 days before the start of the stay.
- Firm: Reservations are fully refundable up to 60 days before the start of the stay. Guests can receive a 50 percent refund for cancellations made up to 30 days before the beginning of the stay.
- Moderate: Reservations are fully refundable up to 30 days before the start of the stay. Guests can receive a 50 percent refund for cancellations made up to 14 days before the beginning of the stay.
- Relaxed: Reservations are fully refundable up to 14 days before the start of the stay. Guests can receive a 50 percent refund for cancellations made up to seven days before the beginning of the stay.
