The vacation rental landscape is experiencing a seismic shift, driven by Airbnb vs. Vrbo as they go head-to-head to fight for the most market share and popularity among hosts. These platforms have revolutionised how hosts rent their properties and how travellers find accommodations beyond traditional hotel rooms.
But as a host or property owner, which platform should you choose? This article will delve into the differences between Airbnb and Vrbo, covering everything from property types, service fees, visibility, financial incentives for new hosts, and more.
Airbnb Overview
Airbnb, founded in 2008, is a vacation rental platform enabling travellers to find unique and cost-effective lodging worldwide. Property owners can list various spaces, from shared rooms to entire houses or unconventional spaces like treehouses or boats.
Airbnb’s community-driven approach fosters a sense of authenticity, making it an attractive option for travellers seeking unique experiences or hosts looking to earn extra income.
Airbnb for Hosts: Pros and Cons
Airbnb’s popularity is a significant advantage for hosts. With over 500 million guest arrivals since the platform’s launch, hosts have unparalleled access to potential tenants, leading to steady bookings and cash flow.
Airbnb also allows hosts to create separate property listings for each room or even partial rooms in a property, offering more flexibility for hosts. However, given the platform’s vast user base, hosts may face stiff competition, especially in popular locations.
Hosts may find it challenging to secure bookings initially as they work towards building positive Airbnb reviews. Offering a discounted price for the first few guests can attract new tenants and secure those all-important initial bookings.
Airbnb’s Unique Features
Airbnb’s unique selling point lies in its variety of vacation rental properties. From castles to caves, igloos to treehouses, the “Unique Stays” filter lets Airbnb users find something extra special.
Plus, Airbnb’s comprehensive review system allows guests and hosts to provide feedback, helping hosts refine their listings where necessary and providing prospective guests with up-to-date feedback on the property.
Vrbo Overview
Vrbo (Vacation Rental By Owner) is a vacation rental platform that allows guests to book entire homes or apartments directly from the owners. Part of the Expedia Group, Vrbo lists over 2 million rental properties in 190 countries, specialising in vacation rentals, making it an excellent option for families or groups travelling together.
Vrbo for Hosts: Pros and Cons
Vrbo’s affiliation with Expedia Group is a significant advantage for hosts. This connection allows Vrbo to leverage Expedia’s marketing muscle and reach, potentially boosting the visibility of Vrbo listings.
While Vrbo also features a review option, the system is not as intricate as Airbnb’s, and reviews are not vetted as thoroughly. This difference means Vrbo reviews are generally less crucial to the booking experience than on Airbnb.
Vrbo’s Unique Features
One of Vrbo’s standout features is its focus on whole properties only. This focus makes it particularly appealing to hosts with larger vacation rentals who wish to attract families or larger groups to traditional vacation destinations. Vrbo’s extensive search functionality allows users to filter properties by user reviews, whether bringing pets is okay, and even cleanliness ratings.
Airbnb vs. Vrbo: Key Differences
One of the main differences between Airbnb and Vrbo is the type of properties available for rent. Airbnb offers a mix of shared and private spaces, allowing hosts to list individual private rooms within a property. On the other hand, Vrbo focuses on entire properties only, making it an attractive platform for those offering larger vacation homes.
Property Types
Airbnb’s flexibility in property types is one of its significant advantages. Hosts can list various vacation rental options, from shared rooms to entire properties. This breadth of choice makes Airbnb attractive for hosts with diverse property types.
Vrbo offers fewer rentals, but its focus on entire properties makes it an appealing platform for hosts with larger properties or those targeting family groups or larger parties.
Service Fee
Both Airbnb and Vrbo charge service fees to hosts and vacation renters. However, these fees can vary based on the platform and the booking’s cost.
Airbnb charges hosts a 3% service fee for each booking, while guests can expect to pay a service fee between 0 and 20% of the booking subtotal.
Vrbo charges hosts a 5% commission on each booking, with guests expected to pay a service fee of up to 15% of the booking subtotal. These fees are essential to remember when deciding which platform to choose and when setting your vacation rental rates.
Here’s a summary table comparing what hosts and guests have to pay on each platform.
Service Fees | Airbnb | Vrbo |
Host Service Fees | 3% per booking | 5% commission |
Guest Service Fees | 0-20% of subtotal | Up to 15% of subtotal |
Cancellation Policies
Both Vrbo and Airbnb offer several cancellation policy options. Airbnb allows hosts to choose from flexible, moderate, firm, or strict policies, dictating the refund amount guests receive based on when they cancel.
Vrbo, on the other hand, offers a range of policies from flexible to strict, including a no-refund option. While hosts can set their cancellation policy, the stricter the policy, the less attractive the listing may be to potential guests.
Airbnb vs. Vrbo: Comparing Visibility and Search Rankings
Both Airbnb and Vrbo consider several factors when ranking properties in search results. These factors include the quality of the listing description and photos, the host’s response rate, the number of positive reviews, and the booking conversion rate.
Airbnb also rewards high-performing hosts with a “Superhost” status, which can increase a listing’s visibility. Vrbo doesn’t have a comparable host recognition program. However, being part of the Expedia Group, Vrbo properties may gain additional visibility across other Expedia-owned platforms.
Financial Incentives for Hosts
While both Vrbo and Airbnb offer various incentives and support for hosts, Airbnb’s “Superhost” program stands out. Once hosts meet specific criteria (including high reviews, low cancellations, and high response rates), they receive a badge that sets them apart from other hosts, indicating that their property is worth staying at and that guests should expect a stress-free booking and stay.
In contrast, Vrbo does not offer a comparable recognition program for its hosts. However, hosts with a high volume of bookings may benefit from Vrbo’s subscription model, which allows unlimited bookings for a flat annual service fee.
Booking and Payment Policies
When it comes to booking and payments, both Airbnb and Vrbo offer different options. Upon booking acceptance, Airbnb generally charges guests the total price, but hosts won’t receive the payment immediately. They release the funds a few business days after the guest checks in.
On the other hand, Vrbo provides more flexibility to hosts. They can set their own payment structures, including deposits or split payments, and choose whether they want to receive the payment during booking, over time, or upon the guest’s arrival.
Airbnb vs. Vrbo: Insurance and Protection for Hosts
Both Airbnb and Vrbo offer protection for hosts. Airbnb provides Host Protection Insurance and Airbnb’s Host Guarantee to their hosts, both of which are free.
On the other hand, Vrbo offers hosts a $1M liability insurance plan with all bookings at no additional cost. This plan covers the host if a guest makes an injury or property damage claim against them.
Airbnb vs. Vrbo: Which Vacation Rental Platform is Safer?
Both Airbnb and Vrbo have policies in place to keep guests and hosts safe. User reviews between the two sites are similar regarding safety measures. Airbnb performs background checks on hosts, uses a secure payment system, and offers customer support 24/7. Vrbo customer service provides identity verification for travellers and hosts and an online messaging system.
Frequently Asked Questions
Now, let’s delve into some frequently asked questions about Airbnb vs. Vrbo:
What is the difference between Vrbo and Airbnb for the host?
The main difference between Vrbo and Airbnb for hosts lies in the types of properties they can list and the fees they will incur. Airbnb allows hosts to list various property types, including shared rooms or entire homes, and charges a 3% service fee for each booking. On the other hand, Vrbo requires hosts to list entire properties and charges a 5% commission on each booking, plus a 3% credit card processing fee.
Does Airbnb vs. Vrbo offer financial incentives for new hosts?
Both platforms offer incentives for new hosts. Airbnb’s “Superhost” program rewards high-performing hosts with increased visibility and a badge that sets them apart from other hosts. Vrbo, on the other hand, offers an annual subscription model for hosts with a high volume of bookings, which allows unlimited bookings for a flat annual fee.
Can I link Airbnb and Vrbo?
Yes, it is possible to link Airbnb and Vrbo using a channel manager or property management software. This can help you manage your listings across multiple vacation rental platforms and avoid double bookings.
How do Airbnb and Vrbo differ in terms of visibility and search rankings?
Airbnb and Vrbo use different algorithms to rank listings in search results. Airbnb favours listings with high reviews, low cancellations, high response rates, and “Superhost” status. Vrbo’s ranking factors are not as well known, but as part of the Expedia Group, Vrbo properties may gain additional visibility across other Expedia-owned platforms.
What is the disadvantage of using Airbnb to list vacation rentals?
One potential disadvantage of Airbnb is the high level of competition due to the platform’s vast user base. Hosts may find it challenging to secure bookings for their Airbnb properties, especially in popular locations. Additionally, Airbnb’s service fees can be higher than Vrbo’s, depending on the booking’s cost.
How do Airbnb and Vrbo handle VAT or other sales taxes?
Both Vrbo and Airbnb handle VAT or other sales taxes differently depending on the location. On Airbnb, hosts are responsible for determining their VAT obligations and collecting and remitting the correct amount. On Vrbo, the platform collects and remits taxes on behalf of hosts in certain locations.
Does it cost money to host on Vrbo?
Yes, it does cost money to host on Vrbo. Hosts can either pay a pay-per-booking fee, a 5% commission plus a 3% credit card processing fee, or an annual subscription fee of $499 for unlimited bookings.
What are the commission rates for hosts on Airbnb vs. Vrbo?
Airbnb charges hosts a 3% fee for each booking. Vrbo, on the other hand, charges hosts a 5% commission on each booking plus a 3% credit card processing fee or a flat annual subscription fee of $499 for unlimited bookings.
Is it easier to stand out as a host on Airbnb or Vrbo?
Standing out as a host can be easier on Airbnb due to the platform’s “Superhost” program, which rewards high-performing hosts with increased visibility. On Vrbo, standing out as a host may be more challenging due to the lack of a comparable host recognition program.
Key Takeaways
- Airbnb offers a variety of property types, from shared rooms to entire properties, making it a flexible option for property hosts.
- Vrbo focuses on entire vacation rental properties only, which can be an attractive platform for those offering larger holiday homes.
- Airbnb charges hosts a 3% fee for each booking, while Vrbo charges a 5% commission on each booking plus a 3% credit card processing fee or a flat annual subscription fee of $499 for unlimited bookings.
- Both vacation rental sites offer various cancellation policy options, but their flexibility can make Airbnb’s policies more attractive to guests.
- Airbnb and Vrbo use different algorithms to rank listings in search results, with Airbnb favouring listings with high reviews, low cancellations, high response rates, and a “Superhost” status.
- Each vacation rental site offers protection for hosts, with Airbnb providing Host Protection Insurance and Airbnb’s Host Guarantee, and Vrbo offering a $1M liability insurance plan.
- Depending on the location, Airbnb and Vrbo handle VAT or other sales taxes differently.
- It can be easier to stand out as a host on Airbnb due to the platform’s “Superhost” program.
As the holiday season approaches, the question isn’t just whether to choose Airbnb or Vrbo, but how to excel on either platform. If you’re ready to maximise your potential and elevate your vacation rental game, contact us today.
Top Tips for Choosing an Airbnb Management Company
To help you make the best choice for your investment property, here are some key considerations to keep in mind during your selection process:
1. Company Reputation and Track Record
When researching potential Airbnb management companies, assess their reputation and track record. Look for companies with positive reviews and testimonials from satisfied property owners. For example, we have plenty of five-star reviews on our Google profile.
Ask for references and contact other owners who have worked with the company’s Airbnb property managers to get firsthand feedback on their experiences.
A reputable company will have a proven track record of delivering professional service and exceptional results.
2. Services Offered
Different Airbnb management companies offer various services, so clarify which services their management package includes.
Some common services provided by the best property management companies include:
- Listing Creation and Optimisation: Professional photography, compelling descriptions, and strategic listing placement.
- Marketing and Advertising: Promoting your vacation rental property through various channels, including social media, online travel platforms, and their own website.
- Dedicated Property Manager for Communication and Support: Handling guest enquiries, bookings, and 24/7 support.
- Professional Cleaning and Maintenance: Coordinating cleaning services, property inspections, and handling maintenance requests.
- Pricing Optimisation: Setting competitive rates based on market analysis and demand.
- Legal and Regulatory Compliance: Ensuring your property meets all local regulations and tax requirements.
Have a clear understanding of the management services offered by each company and choose one that aligns with your specific needs and goals.
3. Property Management Fees and Pricing
Consider the pricing structure and fees of each Airbnb management company. Most management companies charge a percentage of your rental income as their fee, typically 20% to 40%.
Be cautious of companies that offer very low fees, as they may cut corners or provide subpar service. Clarify if there are any additional fees or hidden costs that you need to be aware of. Cheaper is not always better.
4. Local Expertise
If you own a property in a specific location, choose a property management company with local expertise and knowledge.
They should deeply understand the local market, including seasonal trends, local attractions, and regulations.
Local expertise will enable them to optimise your pricing strategy, attract the right guests, and provide valuable recommendations to enhance the guest experience.
5. Technology and Tools
A good Airbnb management company should leverage technology and tools to streamline operations and enhance efficiency.
Enquire about their software and platforms to manage bookings, automate tasks, and provide real-time reporting.
Advanced technology can improve communication, automate pricing adjustments, and provide valuable insights into your property’s performance.
Key Takeaways
- Partnering with a professional Airbnb management company can help maximise your rental income, save time and effort, and ensure a stress-free vacation rental experience.
- When choosing a property management company, consider the company’s reputation, services, pricing and fees, local expertise, and technology and tools.
- Identify your needs and goals, research potential companies, schedule consultations, and evaluate services and fees before deciding.
- Check references and reviews from other clients, review contracts and agreements, and start onboarding once you have selected.
- Maintain regular communication with your management company and evaluate their performance periodically to ensure they deliver on their promises.
Need a hand? Contact us today to learn more about how we can support your short-term rental business.
