Airbnb vs. Vrbo: How are They Different?

Airbnb vs. Vrbo has been a common topic of discussion among hosts and guests. The two platforms are travelers’ two most popular choices. Vrbo and Airbnb share similarities and differences, but their demand gap is enormous. Airbnb is a more popular choice among travelers and hosts, with over 5.6 million listings worldwide. However, some markets have more Vrbo listings.

Which is better, Airbnb or Vrbo? What is the difference between Airbnb and Vrbo? These are the questions that we will discuss in this blog.

What is Airbnb?

Founded in 2008, Airbnb is a San Francisco-based short-term rental marketplace with more than 6 million listings in 100,000 cities worldwide. It also offers services such as Airbnb experiences, where local guides can take you on adventures, and Airbnb for Work, where you can book co-working spaces.

What is Vrbo?

Vrbo, or Vacation Rental By Owner, was founded in 1995 and is headquartered in Austin, Texas. It is an online marketplace for short—or long-term vacation rentals. Vrbo is now part of Expedia Group, which also owns another vacation rental marketplace, HomeAway. With over 2 million listings in 190 countries around the world, Vrbo caters to families, vacationers, and larger groups.

This article on Business Insider takes you through a person’s journey on how they rent on both Vrbo and Airbnb.

Airbnb vs. Vrbo: Similarities

When discussing Airbnb vs. Vrbo, we must first talk about their similarities to also be able to crack the Airbnb algorithm.

1. Cleaning policy: Both Vrbo and Airbnb have clear cleaning policies. Airbnb has released a new ‘Enhanced Cleaning’ feature, which is reflected in the listing’s description. According to both Vrbo and Airbnb’s policies, you must disinfect your property between stays. You can also add cleaning fees to both platforms.
2. Service animal policy: Vrbo and Airbnb have similar policies – both accept service animals without documentation, extra fees, or prior notice.
3. Booking convenience: Vrbo and Airbnb offer instant booking and host approval-based bookings. If you want to have more control over the kind of bookings you accept, you can have it on both platforms. Or if you’d rather let it happen on auto-pilot – let it!
4. Discounts: You can set promotional discounts for weekly and monthly bookings, last-minute bookings, far-out, and other types of bookings.

Airbnb’s name is synonymous with short-term rentals, but Vrbo predates the former by 13 years. Both Vrbo and Airbnb are user-friendly and make finding a perfect stay easy. However, there are stark contrasts. Here are major differences:

Vrbo Focuses On Bigger Vacation Rentals, And Airbnb Goes The Entire Range

Airbnb provides unique and creative home experiences. Guests can rent everything from a house to hotels. Airbnb focuses more on unique experiences than Vrbo. Like Airbnb, anyone can post a listing on Vrbo. It also offers a plethora of different rental types. However, unlike Airbnb, Vrbo only allows listing entire homes, which means it has fewer rentals than Airbnb. 

On the contrary, the traditional family stays, and bigger vacation homes listed on VRBO attract large families and a slightly mature audience. It also attracts larger groups traveling together who prefer to have their own space instead of sharing with a host. 

Airbnb Has More Listings Compared To Vrbo

Airbnb has more choices. As mentioned above, there are 6 million listings on Airbnb compared to 2 million on Vrbo. This might seem like tough competition for hosts. However, Airbnb also has more guests than Vrbo—150 million compared to Vrbo’s 48 million—so there is more competition for available listings. 

Vrbo Tends To Have Lower Fees

Both Vrbo and Airbnb charge a host service fee, which is usually a percentage of the reservation total. Understanding the fees is important to creating your vacation rental pricing strategy.

Vrbo Fees

Vrbo has two listing models:

1. Pay-per-booking: In this model, you pay commission fees per booking. The fee starts at 8% and includes a 5% service fee and a 3% payment processing fee. Generally, the higher the reservation amount, the lower the percentage of the Vrbo listing fee.
2. Subscription: In this model, you pay an annual fee of $499 upfront

Airbnb Fees

It also has two models:

1. Split-fee structure: This consists of a host and guest service fees. Hosts pay a 3-5% service fee calculated from the booking subtotal. Guests pay a service fee of up to 14%.
2. Host-only fee structure: Hosts pay a commission of 14-16%, which covers the service fee for the guest.

Airbnb vs Vrbo Cancellation Policies

The cancellation policy you choose to offer your guests has a direct impact on your business, which is why it is essential to familiarise yourself with the cancellation policies of different channels.

Vrbo Cancellation Policies

Airbnb Cancellation Policies

No Refund: Booking is non-refundable under any circumstances. Strict: Cancellations up to 60 days before the booking date are fully refundable. Firm: Cancellations made up to 60 days before the booking date are fully refundable. Cancellations made up to 30 days before the booking date receive a 50% refund. Moderate: Cancellations made up to 30 days before the booking date are fully refundable. Cancellations made up to 14 days before the booking date receive a 50% refund. Relaxed: Cancellations made up to 14 days before the booking date are fully refundable. Cancellations made up to 7 days before the booking date receive a 50% refund.

Super strict 60 days: Cancellations made up to 60 days before the booking date receive a 50% refund of the nightly rate and the cleaning fee. Super strict 30 days: Cancellations made up to 30 days before the booking date receive a 50% refund of the nightly rate and the cleaning fee. Long-term (Bookings exceeding 27 nights): Cancellations are allowed only 48 hours after the booking provided it occurs at least 28 hours before check-in. Strict: Free cancellations are allowed only 48 hours after the booking. Cancellation made 7 days before the booking date will receive a 50% refund of the nightly rate and the cleaning fee. Moderate: Free cancellations are allowed upto 5 days before a booking date. Cancellations 5 days or before a booking date will receive a 50% refund. Flexible: Free cancellations allowed 24 hours before the booking date. Cancellations made less than 24 hours before the booking date will be given a refund without the first night.

Which is Better Airbnb or Vrbo for Owners?

Now that we’ve analysed the differences and similarities, it is time to choose between them. You might have a better idea of which might work better for your business. However, it doesn’t have to be a choice between the two. A lot of hosts find it extremely beneficial to list on both Airbnb and Vrbo.

Even if you only have a few listings, listing on both platforms might benefit you. You will be able to reach a wider audience, which will help you maximize your occupancy and increase your bookings. This might seem difficult – however, multi-channel distribution can be made simple with a few steps:

1. Vrbo and Airbnb calendar sync: You should ensure that your availability is always up-to-date on both channels; otherwise, you risk getting double bookings. You must export your Airbnb calendar in iCal format and import it into Vrbo. You can do the same with Vrbo and upload it to Airbnb. Now, you’ve established a two-way connection that’ll update both calendars as and when you get a booking.
2. Use a Vrbo and Airbnb channel manager: Channel managers are software solutions that integrate directly with booking sites, allowing them to instantly update availability across channels.

The answer to the question: Both have their benefits. Choose both to expand your target market.

Choose PriceLabs to Make Multi-Channel Revenue Management Easy

PriceLabs is a revenue management solution for the short-term rental and hospitality industry, founded in 2014 and headquartered in Chicago, IL. Our platform helps individual hosts and hospitality professionals optimize their pricing and revenue management, adapting to changing market trends and occupancy levels.

Choose PriceLabs to increase revenue and streamline pricing and revenue management. Sign up for a free trial at pricelabs.co today.

1. Dynamic Pricing Adjustments: PriceLabs continuously monitors market conditions and adjusts your listing prices in real-time to maximize revenue and occupancy. This dynamic pricing strategy helps ensure that your rates remain competitive, which is essential for maintaining high booking volumes and meeting Airbnb’s hosting criteria.
2. Customized Minimum Stay Requirements: PriceLabs allows you to set customized minimum stay requirements based on your preferences and market demand. By strategically adjusting minimum stay lengths, you can optimize your booking calendar, minimize gaps between reservations, and maximize your earning potential, all of which contribute to Superhost eligibility.
3. Performance Analytics and Insights: PriceLabs provides detailed analytics and insights into your listing’s performance, including occupancy rates, revenue generated, and pricing trends. By monitoring these metrics, you can identify areas for improvement, adjust your pricing strategy accordingly, and maintain a competitive edge in the market, all of which are vital for Superhost recognition.
4. Integration with Airbnb: PriceLabs seamlessly integrates with Airbnb, allowing you to manage your pricing strategy directly from the Airbnb platform. This integration streamlines the hosting process, saves time, and ensures consistency in pricing and availability across all your listings, which contributes to a positive guest experience and, ultimately, Superhost status.
5. Map listings across booking channels: PriceLabs makes it easy for you to make pricing adjustments and minimum night settings across booking channels.
6. We integrate with 100+ property management systems and booking channels.