Should I List on Airbnb or Vrbo?
BY MIKEL HUBBARD
FORMER HGTV PRODUCER | CO-FOUNDER, THE HOST CO |
OWNER, TIMES EIGHT PROPERTY & DESIGN
What’s the best platform to post your listing? We’ve listed on multiple services and even though you can sync calendars, it can get confusing to figure out what guest booked where, figure out how much you made and how to track down the TOT fees across multiple platforms. So we wanted to talk about the main differences between listing on Airbnb and VRBO if you want to streamline the process.
What are the biggest differences between the two services for hosts?
This week, we want to break down the two businesses and give you the information to decide which platform is better for you.
VRBO
YOU CAN EITHER PAY AN ANNUAL FEE OR A COMMISSION FEE, AND THE GUESTS PAY THE SAME BOOKING FEES EITHER WAY
VRBO has an annual fee required for hosts on their platform of $499, unless you choose to let them take 5% to 9% of every booking instead. This is key for many hosts to know before just listing offhand — it will cost some extra money upfront to save money long-term if you choose this option. Either way, you may have to justify that fee by renting your house or place a lot. So if you are looking to list your house or apartment out for a week or two to cover your vacation costs, Airbnb is probably a better fit for you.
Also, keep in mind that booking fees your guests pay will not decrease because of paying a higher commission or annual fee than Airbnb, so, guests are paying the same amount — or more — regardless.
In terms of commission fees for hosts, they generally add up to 8% in total, via a 5% service fee per booking (which include VAT taxes if those are applicable in your country), as well as a 3% credit card charge whenever a guest pays through credit card. Both of these fees are paid directly to the company.
MORE SEARCHED FOR IN “TRADITIONAL” VACATION LOCATIONS
VRBO is an older service than Airbnb, so it’s been around longer. More “classic” vacation locations like Lake Tahoe will be better and more established and searched for / booked within the guest community on VRBO. The newer Airbnb hotspots like Joshua Tree, Sedona, or Gatlinburg will be much less populated by Vrbo listings or searched for by potential guests.
On one hand, if there’s less of a presence, there’s more of a market for you. On the other hand, it’s possible guests aren’t searching there on the app because there is nothing there. So, check out your short-term rental’s area first on the app to see what’s going on there already. That can help you determine if it’s worth investing in.
BE PREPARED TO RENT YOUR ENTIRE LISTING OUT
While Airbnb has a much more flexible structure for sharing your listing — you can list a room in your house, a hotel, an apartment, etc. — VRBO requires you to list your entire place online. If your Airbnb setup doesn’t give you the capability to do that, save yourself the time of looking into it — as of now, VRBO only wants full houses or properties.
That said, it doesn’t have to be just a traditional “house” — there can be all types of listings on VRBO, provided you can rent out the entire property.
AIRBNB
NO ANNUAL FEES, TYPICALLY LESS COMMISSION FEE
While VRBO costs an annual fee to join their website, Airbnb does not require annual fees. This allows more open access to their platform. Additionally, the majority of their profit structure comes from booking costs on the side of the guests, not hosts, so your commission fee can be as low as 3%.
It should be noted that hosts with very strict cancellation policies, or in certain parts of the world, the commission fee can be higher. It depends on several factors, so it’s good to set up your listing first to see what it will all add up to.
GOOD FOR CURRENT TRAVEL HOTSPOTS
On the flip side of VRBO, Airbnb is the place to list if you are in travel hotspots. This is why Joshua Tree and Big Bear are flooded with beautiful Airbnb listings — when people think short-term rentals in these areas, they think first to search on Airbnb.
If you’re looking to start up a new place, or are thinking of expanding to VRBO or Airbnb on top of the other one, consider doing a search of your area on the respective apps to see how much of a presence there is in that area.
SHOULD I LIST ON BOTH?
THINGS TO CONSIDER
Nearly all hosts are looking to maximize their passive and active income through their listings. So a natural question that comes up is, “should I be listing on both properties at once?” It’s worth exploring, and there are channel managers like Uplisting or Lodgify that can be used to sync your calendars. However, the more places you list your Airbnb on, the more terms of service, different occupancy tax calculation policies and messaging apps you’ll have to coordinate. If you have the time and desire to do so, it can definitely be worth it! Here are some things to consider:
CON: ACCIDENTAL DOUBLE BOOKINGS
Channel managers are great resources, but they’re like us: not perfect, and can make mistakes! Sometimes, for instance, they can book over each other, and you may have a double-booking on your hands. Airbnb and VRBO as well as other companies will look down on host-initiated cancellations for things like over-booking, and your SEO ranking within the apps themselves will go down. Make sure to keep a firm eye on the schedules as they evolve together within whatever channel manager you use, should you choose to use more than one STR booking company!
PRO: POTENTIALLY MORE MONEY
If you’re not getting enough money from one source, it’s possible that adding another place to book will increase your earnings. Check and see what other hosts are saying in your area, and like we said above, make sure your listing is in a good spot for whatever company you choose to list on.
CON: DIFFERENT OCCUPANCY TAX CALCULATIONS, MESSAGING, APP POLICIES… AHH!
There are more STR booking sites than VRBO and Airbnb, and there are some hosts that valiantly list their same properties on several booking sites at once. On the surface, this can seem like a great idea — maximize potential streams of income and exposure, right? Well, just keep in mind, it could get complicated.
First off, when you are calculating hotel/occupancy tax, some platforms collect the taxes and submit them to your county on your behalf — and some do not, leaving you to. Different sites break down the fees and taxes on their platform in different ways, and it can be confusing to calculate them on your own when they’re not clearly broken down in the description. So, get ready to do some math!
There’s also going to be different potential guests messaging you from several apps at once, so don’t get any company policies confused between the several guests — and the more booking sites you add, the more there are to deal with at once.
EVALUATE YOUR AREA & PROFITS BEFORE DECIDING
If you’ve got the bandwidth, strategy and confidence to book on both, go for it — just keep in mind that it does get more complicated. We recommend evaluating the costs and benefits mentioned before making a decision.
Do you have a listing on both sites? Just one or the other? Let us know!