Airbnb vs. VRBO: An In-depth Comparison for Hosts
Introduction
In the ever-evolving landscape of short-term rental platforms, Airbnb and VRBO stand out as the two leading vacation rental sites. Whether you're a new host looking to jump into the world of vacation rentals or an experienced proprietor weighing your options, understanding the nuances between Airbnb and VRBO is crucial. This blog post dives deep into each platform, comparing aspects such as booking volume, guest booking experience, host experience, fees, and support. Our aim is to help you make an informed decision on which platform aligns best with your hosting goals.
1. Booking Volume on Sites: Airbnb vs. VRBO
When it comes to the success of a short-term rental platform, booking volume plays a crucial role. This metric not only affects the potential revenue for hosts but also reflects the platform's popularity and reach. Here’s a deeper dive into the booking volumes of Airbnb and VRBO:
TL/DR: Listing on Airbnb will most likely drive more volume of bookings, but VRBO tends to drive stays of larger groups and at greater lengths.
Pro tip: Pricing a little higher on VRBO can often help balance lower volume.
Airbnb’s Global Reach
Airbnb boasts an extensive global network, hosting millions of guests and listings in more than 220 countries and regions. This vast reach is beneficial for hosts because it translates into higher exposure and potentially higher booking rates. Urban areas, in particular, see a high volume of bookings due to Airbnb's popularity among tourists and business travelers seeking unique and local experiences. Additionally, the platform's aggressive marketing strategies and strong brand recognition continue to attract a steady stream of new users, thereby maintaining high booking volumes.
Seasonal and Event-Driven Bookings
Airbnb's booking volume is also significantly influenced by seasonal trends and local events. For example, cities hosting major festivals, sports events, or international conferences see spikes in Airbnb bookings as visitors flock to these temporary attractions. Hosts can capitalize on these events by adjusting their pricing and availability accordingly, thus maximizing their earnings during high-demand periods.
VRBO Properties and the Expedia Group Advantage
VRBO's integration into the Expedia Group has further enhanced its position in the vacation rental market. As part of one of the world's largest travel companies, VRBO benefits from Expedia's extensive marketing reach and technological prowess. This affiliation allows VRBO to tap into a broader audience, drawing from Expedia's loyal customer base who are already accustomed to using its platform for various travel-related services. Additionally, this relationship provides VRBO hosts with the opportunity to be featured across Expedia’s multiple travel and booking sites, potentially increasing bookings through greater exposure. This strategic alliance is particularly beneficial in competitive markets, where increased visibility can significantly impact booking volumes and overall host success.
Demographic and Market Preferences
VRBO’s market strategy attracts a demographic that includes families and larger groups looking for whole properties. This can lead to higher average booking values, as these properties generally command higher rental rates per stay. The platform's strong presence in the vacation rental market, particularly in the United States, also contributes to robust booking volumes, supported by loyal VRBO guests who prefer the type of accommodations VRBO specializes in.
Comparison :
While Airbnb offers a broader range of property types and attracts a more diverse audience, VRBO’s focus on specific types of accommodations and demographics can result in higher booking volumes for certain types of properties or in specific regions. Hosts should consider their property’s location, type, and target guest demographic when choosing between VRBO and Airbnb.
2. Guest Booking Experience: VRBO vs. Airbnb
TL/DR: No real winner here. Both platforms offer a modern, easy user experience. Airbnb might have a slight edge only because of greater brand recognition.
The guest booking experience is pivotal in attracting and retaining customers. Airbnb is known for its user-friendly interface and mobile app, which appeals to a tech-savvy, younger audience that values ease and flexibility. The platform offers various types of accommodations, from shared rooms to luxury villas, providing a wide range of options. Additionally, Airbnb's variety of accommodations includes hotel rooms, which appeals to guests looking for traditional lodging options alongside unique stays.
VRBO, which stands for Vacation Rental By Owner, tends to attract guests looking for whole properties, making it a favorite among families and larger groups. Its search filters are highly detailed, allowing VRBO guests to fine-tune their preferences for amenities and property types, which is a significant advantage for guests who have specific needs.
3. Host Experience: Airbnb vs. VRBO
TL/DR: Airbnb simply offers more tools that hosts can leverage to increase revenue and ensure smooth stays.
Pro Tip: If you are listing properties on multiple platforms, look for a property management software that can help automate your listing and pricing across both Airbnb and VRBO.
From the host’s perspective, both platforms offer distinct experiences and both are experts in helping hosts list and optimize their vacation rentals. Airbnb provides hosts with tools like automated messaging, customizable pricing options, and robust analytics that help in managing listings and optimizing pricing strategies.
VRBO, while less advanced in terms of technological offerings, provides a more streamlined experience focused on renting entire homes.
Key Differences
The key differences in the host experience between Airbnb and VRBO often revolve around the level of control and support tools offered:
Technology and Automation: Airbnb leads with more advanced technological features, including dynamic pricing tools and a more sophisticated mobile app.
Type of Listings and Guests: VRBO’s focus on whole homes attracts a specific guest demographic that may align better with hosts who own larger properties or those located in vacation-centric areas.
Community and Support: Airbnb tends to foster a stronger community feel, offering forums and groups where hosts can share tips and advice. Airbnb's support is also generally more accessible and comprehensive in handling host and guest issues.
Booking Management: VRBO's simpler interface might appeal to less tech-savvy hosts or those who prefer a more hands-off approach, while Airbnb's features cater well to hosts who seek detailed control and insights into their rental activity.
Service Fee Comparison: VRBO vs. Airbnb
TL/DR: Both platforms charge fees but in very different ways. Airbnb shifts a 14-17% fee to the Guests inflating the rate of the property. This doesn't include things like cleaning fees which the host sets.
VRBO, meanwhile, charges the hosts a 5% service fee per booking plus credit card fees or an annual subscription fee of $499/year.
Pro tip: When starting out on VRBO, choose to pay per booking until you understand your booking patterns. At that point, you can do the math to determine if your annual commissions to VRBO will be greater than $500, at that point you should switch to the annual structure.
Airbnb's Fee Structure
Airbnb's fee system is designed to be relatively straightforward, primarily charging hosts a flat service fee. Typically, this host fee is around 3% of the booking subtotal, which includes the nightly rate plus cleaning fees and additional guest fees, but excludes Airbnb's fees and taxes. This relatively low host fee makes Airbnb an attractive option for many hosts. However, guests pay a substantial service fee ranging from 14% to 16% of the booking’s subtotal, which can influence the overall cost competitiveness of listings when guests are comparing prices.
VRBO’s Fee Structure
VRBO offers two main fee structures: a pay-per-booking model and an annual subscription model. The pay-per-booking model charges hosts a 5% commission on each booking, plus a 3% payment processing fee on the total payment amount they receive (including taxes). Alternatively, the annual subscription model costs $499 per year and is often cost-effective for hosts who frequently rent out their property. This flat fee allows hosts to accept an unlimited number of bookings without additional per-booking charges, which can be particularly advantageous for properties with high occupancy rates.
Example for a Host with One Property
Let’s consider a host with a single property that they rent out for $100 per night, with a cleaning fee of $50. Assuming a booking of 5 nights, the total before platform fees would be $550.
Airbnb: The host would pay about 3% of the booking subtotal ($550), resulting in a fee of approximately $16.50. The guest would pay between 14% and 16% on the subtotal, adding approximately $77 to $88 to their total reservation cost.
VRBO Pay-Per-Booking: The host would pay a 5% commission ($27.50) plus a 3% credit card processing fee on the total amount received ($16.50), totaling around $44. This model does not impose additional costs on the guest aside from possible taxes.
VRBO Annual Subscription: If the host chooses the annual subscription, they pay $499 per year regardless of how many bookings they receive. There are no additional per-booking fees for the host, making this option more appealing if the property is booked frequently throughout the year.
5. Support Services: Airbnb vs. VRBO
TL/DR: Both are not without their challenges, but Airbnb will most likely be more responsive and offer to intervene, whereas VRBO often lets hosts and guests duke it out.
Support services are essential for dealing with guest issues and maintaining high-quality standards. Airbnb offers a more comprehensive support system, available 24/7 with a global response team to assist with guest and host needs.
VRBO's support system has improved, providing dedicated support but sometimes falls short in response times and problem resolution compared to Airbnb.
7. Additional Features and Flexibility: Airbnb vs. VRBO
Airbnb offers greater flexibility in terms of types of listings. It's not uncommon to see unique homes, boutique hotels, and even shared spaces on Airbnb, which caters to a broader audience.
VRBO is more rigid, focusing primarily on whole homes, which can be a limitation if you're looking to host in a property that is more unique.
8. Insurance and Protection: VRBO vs. Airbnb
Both platforms provide some form of host protection. Airbnb’s Host Guarantee provides up to $1 million in insurance for property damage, albeit with several exclusions and conditions.
VRBO offers the "VRBO Guarantee," which includes similar protections but with its nuances that require careful consideration by hosts.
Insuring your vacation rental is a very important topic that will take additional research on your own to determine the best route for you. Here is more on each platform's offerings:
Conclusion
Choosing between Airbnb and VRBO involves evaluating what each platform can offer and aligning it with your hosting style and objectives. For hosts in bustling cities or those catering to a younger crowd, Airbnb might be the preferred choice due to its higher traffic and advanced features.
However, for those catering to families or large groups looking for longer stays, VRBO could be more beneficial.
By carefully considering each platform's strengths and weaknesses, you can maximize your success as a host in the competitive world of vacation rentals.
Our final say
Listing your property on both sites is probably in your best interest in almost every case to ensure your property is booked as often as possible.
Pro tip: If you are a new host, Airbnb short stays can often be a great way to start to drive many reviews and even accelerate your ability to reach Super host status. Once you are established on Airbnb you can add in VRBO to help drive longer bookings at a higher price point to compliment the bookings you get on Airbnb.
