What Homeowners Need to Know: A Comparison Between Airbnb and VRBO
According to the latest figures, Airbnb and VRBO are two of the biggest
competitors in the vacation rental industry. Many homeowners consider
both these listing platforms when deciding who to list their vacation
rental with. To save you the time, I’ve done the research for you.
This article will go into details about listing with Airbnb and VRBO,
and discuss how they differ.
Airbnb vs. VRBO: What fees are charged?
VRBO offers you two options. You can pay an annual fee of $499, giving you unlimited inquiries and bookings. Or you can select the pay-per-booking option. This structure charges you a commission starting at 8 percent per booking. This percentage is made up of a 5 percent commission and a 3 percent credit card processing fee. If the credit card is not from the U.S., another 2% may be charged.
To determine which fee structure works better for your rental, think about how often you plan to list it. VRBO suggests opting for the annual subscription if you plan to list your property for more than six weeks during the year.
Airbnb, on the other hand, is a bit more simple when it comes to fees. Rather than an annual subscription, you'll pay a 3 percent fee on every booking. Additionally, Airbnb does not charge a fee to process credit card payments.
How to rank and receive positive feedback from guests
Ranking high on the search list is not an exact science. Yet, there are some best practices that can improve your chances. A good starting point is to get positive reviews from your guests. This is the case for both VRBO and Airbnb. When a guest checks out, feel free to ask them about their stay and encourage them to leave a review.
Also, make sure you respond to any bad reviews. This gives future guests reassurance that you care about your rental and are taking steps to improve the stay for the next guest. Unfortunately, a bad review is part of the game. You may not get many, but when you do, being tactful in your response can be very valuable.
Next, focus on the quality of your photos. Hiring a professional photographer can make all the difference. In this case, quality is just as important as quantity. To rank high on VRBO, you'll need to post at least 24 photos of your property. Airbnb doesn’t have a quantity suggestion for photos. But, on this site you will need at least five photos to appear in mobile search results.
Airbnb vs. VRBO: Instant booking feature
Both platforms offer an “Instant Booking” feature. When you list your property, you can enable or disable this feature and change it any time. Both Airbnb and VRBO say that having this feature on can improve your ranking. This means you won’t have a chance to approve the guest(s) before they book. However, you are able to cancel the reservation without penalty, if you aren’t comfortable with a particular guest. But, cancelling for any other reason, means you will receive a penalty.
Lastly, always remember to keep your calendar up to date, regardless of the platform you have selected.
Airbnb vs. VRBO: Guest experiences
Guests equally enjoy both of these sites. And the service fees are around the same. A 6 to 12 percent fee of the total booking amount, exclusive of taxes, gets charged to the guest.
One major difference between Airbnb and VRBO is the type of rentals offered. More specifically, Airbnb has many short-term and shared rentals. Whereas, VRBO offers longer term stays and has more listings featuring "entire homes."
As a property owner, it’s worth knowing that both these platforms have a closed communication system. This means guests cannot contact you before booking to ask any specific questions about your rental.
Even more, HomeAway, who acquired VRBO back in 2006, says they will start tracking online users and take a cut for any direct bookings. So, if your next guest finds your listing on HomeAway, but books with you directly, HomeAway wants to charge you 10% of that booking.
Managing your vacation rental can be tough. There is much to know and lots of daily requirements, such as keeping your calendar updated. Be sure to know the differences, advantages, and disadvantages of the rental platform before listing your rental. And as always, I’m here to help if you need further advice or have questions.
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Ryan Gravel
Ryan Gravel is an American real estate broker and developer. He began his career at a young
age working for his family owned construction company.
After graduating college at the University of Central Florida with a degree in business,
Ryan set out to find untapped prolific markets around the world. His search landed him in
Playa del Carmen, Mexico where he founded Virgin Realty Mexico and co-founded the Saatal
Development Group one of the fastest growing development companies in the Riviera Maya.
With extensive market knowledge, professionalism, etiquette, innovation and integrity Ryan
is known as one of the most highly respected real estate advisors in the region.
