Most people don’t realize there’s a compelling alternative to Airbnb for renting out your home. What’s even more surprising? This platform has actually been operating 10 years longer than Airbnb.
We’re talking about Vrbo, which—along with its UK counterpart HomeAway—has been connecting travelers with vacation rentals since 1995.
If you haven’t heard of Vrbo or used it as either a host or guest, that’s largely due to Airbnb’s masterful industry disruption rather than any shortcomings on Vrbo’s part.
The platform is far more established than most people realize, boasting over 2 million properties worldwide.
Should you consider listing your property on Vrbo instead of Airbnb? Let’s dive into this comprehensive Vrbo review to help you decide.
What Is Vrbo?
Vrbo stands for “vacation rental by owner.” What started as one man’s simple idea to list his ski resort condo in 1995 has evolved into a substantial platform. HomeAway acquired the original Vrbo in 2006.
In 2015, Expedia Group—which owns Hotels.com, Travelocity, and other recognizable travel brands—purchased HomeAway and rebranded the entire operation as Vrbo.
Initially, Vrbo operated on a subscription model where property owners paid a fixed fee to list their homes. Today, the platform offers both this subscription option and a commission-based arrangement.
Getting Started with Vrbo
Anyone familiar with Airbnb will find Vrbo’s interface intuitive. You can begin by using their earnings calculator to estimate potential rental income.
Vrbo bases these projections on the top 10% of rental earnings in your area. While potentially optimistic, these figures provide a useful benchmark for your earning potential.
Here’s an earnings example from a London neighborhood:
After confirming your email address, you can start creating your listing. Vrbo provides a clear step-by-step process that covers all essential elements—location details, property descriptions, local regulations, and everything needed to optimize your listing’s performance.
Vrbo Pricing Structure
Vrbo offers two pricing options: an annual subscription fee of $499 or a per-booking commission structure.
With the commission model, Vrbo collects 5% of each booking plus a 3% transaction fee. For instance, if a guest books your property for $100 over two nights, Vrbo automatically deducts $8, leaving you with $92.
Most Vrbo hosts choose the annual subscription, but you’ll need to crunch the numbers for your specific situation. If you can generate more than $6,238 annually from your rental, the subscription makes financial sense. Below that threshold, the per-booking fee structure might serve you better.
Understanding Vrbo’s Guest Demographics
It’s tempting to dismiss Vrbo in favor of Airbnb, but there’s good reason why the platform maintains 14 million users across properties in 190 countries.
Vrbo attracts travelers who prefer extensive property selections in popular vacation destinations. The platform primarily targets families, older demographics, and guests willing to pay premium prices for spacious, comfortable accommodations.
This makes Vrbo particularly valuable for owners of larger properties in tourist destinations. You’re also less likely to encounter price-sensitive guests looking to negotiate rates.
Vrbo’s Review System
Anyone who’s used Airbnb or similar platforms understands how crucial reviews are for profitability. While Airbnb gives guests 14 days to leave reviews, Vrbo allows up to one year after checkout for either party to initiate the review process.
Once initiated, the other party has 14 days to respond. Like Airbnb, guests rate using a five-star system, and these reviews significantly influence future bookings.
One key difference: host responses appear prominently in the review section, giving you clear opportunity to address any negative feedback with your perspective.
Maximizing Profits as a Vrbo Host
Regardless of whether you choose Vrbo, Airbnb, or another platform, profitability ultimately depends on your efforts. These platforms simply provide exposure to larger audiences, along with messaging systems, payment protection, and insurance—but generating income is entirely up to you.
Start with professional-quality photos. Poor lighting and grainy images are unacceptable, especially if you’re marketing a luxury property at premium rates.
Include numerous photos—even modest listings typically feature 20+ images so potential guests can thoroughly evaluate your space. If you lack professional camera equipment or a current iPhone, hire someone through TaskRabbit. The photos don’t need to be artistic masterpieces, just clear and well-lit.
Detailed descriptions are equally important. Guests value amenities, from major features like pool access to basic necessities like ironing facilities. Be thorough and specific.
Competitive pricing is essential in most markets. While you don’t need to offer the lowest rates, your pricing should remain accessible, especially when building initial reviews on the platform.
Finally, treat hosting as a serious commitment. Respond promptly to inquiries, experiment with pricing strategies to maintain high occupancy, and consistently deliver excellent guest experiences.
Master these fundamentals, and you’ll be well-positioned to build a successful Vrbo (or Airbnb) property portfolio.
Who Should Consider Vrbo?
Vrbo works best for properties in genuine vacation rental markets—which aligns perfectly with the platform’s “Vacation Rental by Owner” positioning. This represents the core demographic of users browsing the site.
While there’s nothing wrong with listing a city apartment on Vrbo, you’ll likely see better results marketing it through Airbnb.
Experienced hosts who understand effective property marketing across different locations can find Vrbo highly profitable regardless of property type.
Is Vrbo Hosting Worthwhile?
The answer depends on your specific situation. The per-booking fees are substantial compared to Airbnb’s 3% commission. Success hinges on whether you can surpass that crucial $6,298 annual threshold we mentioned earlier.
If you can generate $10,000+ annually, Vrbo becomes an excellent choice. Below that level, Airbnb may prove more profitable.
Ultimately, success depends on your local market conditions and listing management skills. Remember to maintain backup plans for unforeseen circumstances that could disrupt travel demand.
Pros
- Access to 14+ million users worldwide
- Straightforward listing creation process
- Comprehensive insurance coverage
- Annual subscription offers excellent value for high-earning rentals
- Perfect fit for vacation properties
- Reliable customer support and dispute resolution
- Active host community
- Flexible cancellation policies
- Multiple pricing models available
- Listings appear on both HomeAway and Vrbo platforms
- Attracts families and older guests with higher spending power
Cons
- Higher per-booking fees than competitors
- Smaller user base compared to Airbnb
- Limited variety in property types
Airbnb vs. Vrbo: Making the Choice
These platforms aren’t mutually exclusive. Just as drivers can work for both Uber and Lyft, nothing prevents you from marketing your property on both platforms simultaneously.
Successful Vrbo hosts typically leverage every available resource, including Craigslist, Facebook groups, and multiple travel platforms alongside Vrbo or Airbnb.
This strategy makes the per-booking fee structure attractive for Vrbo. List on both platforms, and if a Vrbo booking comes through, you’ll pay higher fees—but isn’t that better than vacancy?
Since creating photos and descriptions requires similar effort for both platforms, testing both makes sense. After gathering performance data, you can focus on whichever platform generates higher profits.
Final Thoughts on Vrbo
While Vrbo may lack Airbnb’s brand recognition, it’s a robust platform particularly well-suited for vacation rental properties. The flexible pricing structure makes it easy to test the waters before making long-term commitments.
Whether you choose Vrbo, Airbnb, or another platform, your earning potential directly correlates with the effort you invest in optimizing and managing your listing.
