Vrbo's Host Cancellation Penalty Just Got More Expensive

Vrbo's Host Cancellation Penalty Just Got More Expensive

Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes

Vrbo sent me an email today about changes to their host cancellation policy, and they've upped the penalties, as of October 15th. And they are increasing the suspension times. Bolded sections below are mine:

"What is not allowed -

At Vrbo, we expect hosts to accept booking requests and honor confirmed bookings. If a host cancels a confirmed booking, they may be subject to the enforcement actions set out below.

Examples of host cancellations which may be subject to enforcement include the following: 

  • The host double-books the listing, causing a cancellation. 

  • The host switches the guest to a different property than the one booked. 

  • The host denies entry to a confirmed guest, or the guest is unable to access the property at or after check-in time, leading to an agent having to cancel the booking (also known as a ‘denied entry event’).

  • The host doesn’t provide the guest with all required critical stay information in violation of our .  

If a host cannot honor a booking, the host must cancel it. If a host encourages or pressures a guest to cancel a booking, this will be treated as a host cancellation. Any attempt to shift responsibility for a cancellation to a guest, or to act dishonestly to avoid this policy, is strictly prohibited.

Enforcement

Fees: We may charge a fee for host cancellations. These fees offset the anticipated costs and negative impact of cancellations on our guests, other hosts, and Vrbo.

We will charge the following fees: 

  • equal to 100% of the reservation amount for host cancellations that occur within 48 hours of check-in time or at or after check-in time, including for denied entry events. 

  • equal to 50% of the reservation amount for host cancellations that occur more than 48 hours before check-in but within 30 days of check-in. 

  • equal to 25% of the reservation amount for host cancellations more than 30 days before check-in...

  • The reservation amount is the total reservation amount for all nights, including the base rate, plus any mandatory fees, such as cleaning fees. Applicable taxes will be added to any cancellation fees that are charged.

    For hosts that have selected payouts in USD, the minimum cancellation fee is $50 USD, plus applicable taxes... There is no maximum fee. "

It is disgraceful that they are now charging hosts taxes etc. as part of a penalty.

So this means that if your guest can't get in because of a lock malfunction, and you can't be reached within 1 hour, Vrbo will cancel the reservation. Your penalty will be the entire amount of the reservation with all fees and taxes included. And you will be suspended for 14 days.

For comparison, Airbnb's cancellation penalties are half the above amounts, 50%, 25%, and 10%.

Now don't come at me, because I've never cancelled on a guest. I believe there should be penalties. But this is ridiculous.

Many of you in another thread about double booking said you got the guest to cancel themselves or you moved them to another property. Neither of those was allowed before this, but now the penalty is really going to be high.

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MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
9h

The first time either platform claws back or charges me for something ridiculous will be the last time my property appears on their website. I have nicely done products. I’m particular about the condition, cleanliness and responsive to guest’s questions. That said I am not going to lose sleep over trying to achieve 100% reviews and if they support a guest trying to scam me it will be buh-bye.

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  • New to Real Estate · Philadelphia, PA · Member since 2026 · 11 posts · 0 votes
    14h

    The detail I keep going back to is that the fee is tiered by when you cancel, not by what caused it. Same double booking costs 25% if you catch it 30+ days out and 100% if it surfaces at check-in. So as of the 15th the expensive mistake isn't really the double booking, it's finding out late.

    Which makes closing the "move them to another property" route a bigger deal than the headline percentages. That was the escape hatch for exactly the late discoveries that now cost the most.

    Are you changing anything before Oct 15, or does having Instant Book off already cover you?

    • Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
      13h

      Airbnb has their fee structure by when you cancel too. The idea is that the guest is more inconvenienced the closer to the booking, because they might not be able to find another property, and their vacation is ruined.

      If you double book a last minute or same-day booking and have to cancel, then you pay the 100%, which certainly isn't fair. I wonder if they're doing this to make hosts cancel their double booking on Airbnb, and keep their Vrbo booking, since cancelling on Airbnb now costs less.

      I'm not doing anything different, there's isn't anything I can do. When I have guests arriving, or staying there, I keep my phone with me at all times. I'm 3 hours earlier in my time zone in the summer, so I have to sleep with my phone by me in case I get a text or call from a guest in the early morning. I check and double check my lock codes for guests, so I don't make any mistake there. And like I said, even with Instant Book off, I have to sync the Vrbo calendar manually when I get a booking on Airbnb, because it can lag 10-15 minutes sometimes.

  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    14h

    Well, well, they are just doubling down on dumb. It used to be that AirBnB was more unfriendly to hosts.....

    I wonder if the hosting platforms are really having enough issues with hosts to justify these kind of penalties? And are they coming mainly from the large corporate types of hosts? I doubt it's from people like you and me....

    • Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
      13h

      I really don't know who is cancelling on guests without a valid reason like a water leak or some other disaster. I don't hear about many hosts having double bookings anymore. Maybe the corporate hosts are double booking and moving guests around, maybe Vrbo is having bait-and-switch problems, I don't know. I'm really tired of the constant tighter restrictions on both platforms that always cost us money.

  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    12h

    Well, all of this makes me happier that I am about 10 days from leaving the STR world and shutting down my AirBnb, VRBO and Booking sites! I've had it with all of them.

    Skyline Properties
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  • MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    9h

    The first time either platform claws back or charges me for something ridiculous will be the last time my property appears on their website. I have nicely done products. I’m particular about the condition, cleanliness and responsive to guest’s questions. That said I am not going to lose sleep over trying to achieve 100% reviews and if they support a guest trying to scam me it will be buh-bye.

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