VRBO moves from Hosts on Subscription (PPS) to Pay Per Bookinng (PPB)

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VRBO moves from Hosts on Subscription (PPS) to Pay Per Bookinng (PPB)

Christina B.
Boulder, CO · Member since 2023 · 174 posts · 96 votes

What a surprise... NOT! Got an email this morning that VRBO is forcing moving me from my preferred PPS to their PPB model. Guessing this could have been predicted given Airbnb's recent moves. Details are thin. I wonder how many hosts this affects and if this single "transparent" 12% commission includes the 3% credit card charge and if VRBO still adds their own service fee charged to the guests. Until I have those answers, won't know how to offset properly but this is disappointing news. Didn't Collin once say there was a race to the bottom? For sure, guests and hosts will feel this (while Expedia/VRBO sees record profits).

"Beginning October 29, 2026, when your subscription expires, you will transition from a Pay-Per-Subscription (PPS) model to a Pay-Per-Booking (PPB) model, with a single, transparent 12%* commission fee. Under PPB, you'll pay a commission on each booking instead of an annual subscription fee. Your current PPS subscription will remain in effect until your subscription term ends."

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Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
19h

Man, I am sick of all this.

4Reply
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  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    1d

    I got the 12% email also and agree it was vague.

    1Reply
  • Mike Kirby
    Rental Property Investor · New Braunfels, TX · Member since 2021 · 289 posts · 256 votes
    1d

    I’ve been averaging 18% this year on what VRBO gets on each booking. I’m confused about the 12% too as I know they aren’t taking a pay cut? I guess I’ll see on my October bookings.

    1Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    1d

    I'm not going to be happy about losing the subscription model.

    3Reply
    • Ken Boone
      Investor · Greenville, SC · Member since 2015 · 1k+ posts · 1k+ votes
      1d

      yea me either!

      0Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    1d

    Very curious if there is a guest service as well. I am on an integrated account meaning when a guest books it goes right to my PMS and we charge and are merchant of record, so pushing 16% cost with CC fees. If they are charging guest service fee too its 20-25% which is wild.

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    1Reply
  • Lauren Kormylo
    Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
    23h

    I am so weary of these constant major changes in the ways the platforms do business !! Enough already.

    I just went to their repricing tool page.

    The payment processing fee will be included in the 12%.

    So they want us to increase our nightly rate and the cleaning fee and pet fee and everything else.

    Here's the kicker - they are still charging the guest a fee too! So this is not like Airbnb's recent move.

    And the guest fee sounds nebulous and changeable.

    From their site:

    "Do travelers still pay a fee?  In most cases, travelers will still see a service fee applied at the time of booking. We're making this fee more flexible to ensure that travelers always see a competitive price."

    In the email, they say they are "streamlining our pricing model."

    So how does charging us more do that? It doesn't, it's just a move to make more money, and try to keep their prices just under Airbnb's prices.  This change is for all hosts on Vrbo, not just the hosts on the subscription model.  I got the email, and I am on the pay-per-booking model, paying 5% + 3% CC fee.  So ALL of us will now be paying 12%.

    3Reply
  • Christina B.
    OP
    Boulder, CO · Member since 2023 · 174 posts · 96 votes
    23h

    @Lauren Kormylo Thank you! Good to know payment processing is included- so basically, they're charging us a 9% commission. My subscription won't expire until next year so I have a little more time to learn from others making the transition sooner. At this point, even knowing I need to increase nightly rate, cleaning fees, etc. by 9%, their guest fee is dynamic- so I'm curious how VRBO vs Airbnb will appear to comparison shopping for same dates. I'm also curious if PriceLabs will roll out a tool like they did for the Airbnb update or if I end up using an offset. End of day, it means higher prices for guests and frozen or stagnating nightly rates for hosts to stay competitive. Guess we'll see how everything plays out.

    0Reply
    • Lauren Kormylo
      Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
      21h

      I'm sure Pricelabs will have a tool for Vrbo, just like for Airbnb.

      0Reply
  • Dan Harrison
    Member since 2019 · 1 post · 0 votes
    23h

    Hmm, I have been on PPB since I started, but always thought the Annual was a better deal. I wonder if I can pay the subscription, and keep those rates for a year, if I do it now.

    0Reply
  • Christina B.
    OP
    Boulder, CO · Member since 2023 · 174 posts · 96 votes
    23h

    @Dan Harrison Annual/Subscription/PPS is a better deal if you hit a certain threshold. However, VRBO hasn't offered or made available their subscription model for a while now. It's definitely no longer available. And they're pushing those of us on it- to PPB.

    0Reply
  • Matthew Tregoning
    Property Manager · Melbourne, FL · Member since 2019 · 245 posts · 120 votes
    22h

    We use PriceLabs too. I'd compare a short stay and a full week on both sites after changing the offset. Same dates, same guest count, all the way to checkout. The nightly rate can look right while the guest total is way off.

    1Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    22h

    This is an interesting development, but not unexpected. I am surprised the subscription model has lasted as long as it has, frankly.

    We process all of our own credit cards internally; we are integrated with VRBO. We pay 2%. I'm not sure how VRBO will handle those of us that process their own credit cards.

    Obviously, everyone is just going to pass these fees onto the guests, whatever they end up being. It's a tax, and the consumer ultimately pays all taxes.

    What Airbnb and VRBO have to be concerned about is the tipping point for consumers. With Chat GPT and other similar tools, savvy guests can easily find many Airbnb/VRBO listings on book direct websites that save that 15 or 20 percent. They are already doing so. And when the guest books directly, the platforms get $0.

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    2Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    22h

    UPDATE: After visiting with VRBO Support, it seems that "some partners" will continue with the subscription model. Since I haven't gotten a notification, perhaps that is me. My guess is that VRBO is exempting at least some/possibly all "integrated" partners. That is, those management companies that are handling all reservations and payments through their own system.

    It would be a monumental pain point for VRBO to convert integrated partners to the new payment plan, as VRBO would presumably be wresting away payments and payment processing as well.  They risk property management companies saying "thanks but no thanks, we'll just stick with Airbnb and direct bookings."

    A chess match to be sure.

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    1Reply
    • Trent Reeve
      Atlanta · Member since 2022 · 710 posts · 640 votes
      5h

      I use OwnerRez and i got the emails for my places on the subscription model

      0Reply
  • Christina B.
    OP
    Boulder, CO · Member since 2023 · 174 posts · 96 votes
    21h

    @Collin Hays Thanks for sharing that! I knew the community here would share updates and knowledge. Congrats- lucky you! Time for me to expand marketing on direct booking, lol.

    1Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    19h

    Man, I am sick of all this.

    4Reply
    • Collin HaysBusiness Member
      Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
      17h

      We are most fortunate that there are two competing OTAs.

      Can you imagine a world where it was either Airbnb or VRBO, with no competition? Amazon type deal.

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      1Reply
  • Trent Reeve
    Atlanta · Member since 2022 · 710 posts · 640 votes
    16h

    it was bound to happen. I know they probably lose $3-5k per property that i have on the subscription model.

    1Reply
  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    12h

    Christina, this is a good reminder that STR profitability is always about the numbers after all costs are accounted for.

    Platform fees are just one piece of the equation. When a cost structure changes, I’d look at the actual impact on net operating income rather than just the percentage increase in fees. Sometimes the adjustment can be absorbed through pricing, occupancy, operational efficiencies, or renegotiating other expenses, but it depends on the individual property.

    This is also why tracking property-level performance is so important with STRs. Revenue can look strong while changes in fees, cleaning costs, supplies, insurance, utilities, and maintenance quietly reduce the actual return.
    For anyone operating multiple STRs, having clean monthly reporting makes these decisions much easier because you can see which properties are actually producing strong margins.

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  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    36m

    I don't mean to get overly verbose, but I wrote an essay in response to this move.
    It goes as follows:
    "This sucks"
    That's all I got,
    Mike

    1Reply
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