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
3d

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
    3d

    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
      3d

      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
    3d

    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
      3d

      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
    3d

    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
    3d

    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.

  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    2d

    I have a PMS Intergrated account which allows me to select "guest cancelled" and not pay anything :)

    • Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
      2d

      What PMS company do you use?

  • Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
    2d

    We just placed long-term tenants in our properties that were previously STRs. We had several applicants approach us looking to rent long-term unfurnished, and since they were willing to pay the same rate as short/medium term furnished, it's a win-win. The market seems to have shifted from lots of folks looking for furnished rentals, both medium and short term to more folks looking for long-term leases. Not sure why that is, but it's what we're seeing in our small market sample. We used to get a lot of renters looking to buy who needed a place until they found the right property to buy. Perhaps folks have given up on trying to buy right now with the high interest rates and have decided to just rent for awhile. Probably less people traveling right now as well, with gas and everything being so expensive, less demand for vacation rentals.

    • Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
      2d

      What did you do with all of the furniture and household goods? I'd be afraid to sell it all, and then the renter moves out in a year, and you need the furniture again. Are you thinking these will be LTR from now on?

    • Realtor · Boulder, CO · Member since 2016 · 3k+ posts · 5k+ votes
      1d

      One of the properties has a giant garage with a storage room off of it, so we moved everything into there for now at that property. The rest we are selling or just getting rid of. I gifted some of it to a buyer client who just moved across the country as part of their closing gift. Good timing for them! We’ve had these set up as STRs and some of the furniture is older than that so it’s had a good run.

  • Technology · Vancouver, Canada · Member since 2026 · 8 posts · 1 vote
    2d

    Yeah, this seems way too aggressive. I understand having penalties for host cancellations, but 100% of the reservation plus fees and taxes because of something like a lock issue feels excessive. The one-hour window is rough too.


    Changes like this are also a good reminder why having some direct bookings alongside Vrbo can be valuable. Not to replace the platforms, just to have a little more control over your own bookings.

  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    1d

    Lauren, this is a good reminder that platform-policy risk is now part of STR operations, not just occupancy and pricing.

    The part that would get my attention most is the combination of higher cancellation fees and longer suspension periods. If a denied-entry event, lock failure, double booking, or last-minute operational issue can trigger a fee tied to the full reservation amount, that changes how much operational redundancy a host really needs.

    I’d be thinking less about “how do I avoid ever cancelling?” and more about how to build systems that make cancellation much less likely in the first place. Backup lock access, secondary local contacts, maintenance escalation, calendar-sync checks, and a documented emergency process become more valuable when one failure can now cost the full reservation plus lost future bookings from suspension.

    I’d also keep every host-cancellation charge tracked separately in the books instead of burying it inside general platform fees. That way you can see whether the operational issue is becoming a recurring cost and whether it is tied to access, maintenance, calendar management, or something else.

    From the tax side, platform penalties and service fees can have different treatment depending on what they are actually for, so I’d keep the invoice or platform statement showing the nature of the charge rather than just relying on the net payout.

    For larger STR operators, this also makes direct-booking diversification and cleaner operational controls more important. If one platform changes its rules, you don't want the whole business model dependent on a single channel.

    Feel free to DM me, I'd be happy to send over a few resources that might help with STR bookkeeping, documentation, and operating-risk planning.

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  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    19h

    Guessing VRBO is trying to increase its revenues.

    Anyone know what the Guest penalties for cancellation are (if any)?

    • Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
      12h

      Vrbo has different cancellation policies that hosts can pick from, that policy would apply to all of the guests that booked with that host. Mine is that they get a full refund up to 14 days before check in. From 7-14 days, they lose 50%. From 7 days to check in, no refund. There are policies both more and less strict than mine.

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