VRBO charges 10% commission for direct booking outside of their platform

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VRBO charges 10% commission for direct booking outside of their platform

Mary PastoralPro Member
Investor · Columbus Ohio · Member since 2022 · 27 posts · 34 votes

Hi, 

We had to call VRBO for a bill that they are charging us and this is how I found out that VRBO charges 10% commission for any booking that was made outside their platform. They said that they have access to external direct booking website and they charge higher commission rates if guests book direct vs VRBO platform. Is this your experience as well? Thank you. 

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Lauren Kormylo
Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
1y
Quote from @Account Closed:
Quote from @Lauren Kormylo:

Yeah, no way am I paying Vrbo 10% for bookings elsewhere.  Especially when they only charge me 8% for bookings through them.  Where does it say this in their terms of service? If it's not in there, they can't charge it.  

How are you only getting 8% VRBO charges? Our average for almost 1.5 years is about 18%. 

In the example below, it shows my "Vrbo commission" is 5% and their "payment processing fee" is 3%, so they take a total of 8% (of the nightly rate + cleaning fee + pet fee). 
The guest is also paying a $169 "guest service fee" to Vrbo.  I don't get to keep that, so that is subtracted from my payout here. So the guest is paying a 14.23% commission to Vrbo.

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

    I have never heard of that.

    Maybe go in and manually block direct bookings so their software doesn't pick up on where this is coming from?

    How do they know if this is an owner stay that you blocked on your website, and it pushed over to Vrbo? That might have to be my story.

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

    Yes, I agree with @John Underwood.  How do they know what you are doing on a different site?  It should just show as blocked.

    Mike

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  • Mary PastoralPro Member
    OP
    Investor · Columbus Ohio · Member since 2022 · 27 posts · 34 votes
    1y

    On the VRBO statement, it registered as part of their pay per booking for an "offline" booking. The problem is that these bookings never happened. It was not a real reservation so we never received payments. When I asked VRBO's representative, they said it must be from our direct booking website and that they charge 10% for any offline booking. I checked those dates, and those dates were for a guest from AirBNB. 

    So I was wondering if that is a new rule that I just never knew about. 

    For this particular charge it is an erroneous booking so I am having VRBO reverse their charges. But, I do want to avoid this problem in the future. 

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  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votes
    1y

    This is the first I've heard of this.  Like the others said, I don't see how VRBO would even know you had a direct booking, or what would make them think they're privy to commission on a booking they didn't secure.

    Cosmic Vacations4.9172 Reviews
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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    1y

    Do you have software or an integrated account with them?

    I have run into this as well.  My website is plugged into the same software VRBO is integrated to and they have a way of seeing that the person perhaps inquired through VRBO and ended up booking direct.

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    1y

    Now that would make sense and be appropriate. 

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  • Trent Reeve
    Atlanta · Member since 2022 · 712 posts · 642 votes
    1y
    Quote from @Mary Pastoral:

    Hi, 

    We had to call VRBO for a bill that they are charging us and this is how I found out that VRBO charges 10% commission for any booking that was made outside their platform. They said that they have access to external direct booking website and they charge higher commission rates if guests book direct vs VRBO platform. Is this your experience as well? Thank you. 


     i find it hard to see how this would be legal and enforceable. there must be more to it. No way im paying them 10% for a repeat booking on my direct platform that they have no piece of.

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

    Yeah, no way am I paying Vrbo 10% for bookings elsewhere.  Especially when they only charge me 8% for bookings through them.  Where does it say this in their terms of service? If it's not in there, they can't charge it.  

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  • Mary PastoralPro Member
    OP
    Investor · Columbus Ohio · Member since 2022 · 27 posts · 34 votes
    1y
    Quote from @Andrew Steffens:

    Do you have software or an integrated account with them?

    I have run into this as well.  My website is plugged into the same software VRBO is integrated to and they have a way of seeing that the person perhaps inquired through VRBO and ended up booking direct.


     We have IGMS as our channel manager and I made the direct booking website via IGMS. When I asked IGMS if VRBO can see the bookings made on the direct booking website, IGMS said VRBO should not.

    Is there a way to avoid this in the future?

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

    @Mary Pastoral

    Not that I’m aware of it. It was a while ago and I was able to have the fee reimbursed I believe, but I have a US based manager from VRBO so it was not too painful a process.

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
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  • Patricia Andriolo-Bull
    Member since 2022 · 527 posts · 413 votes
    1y

    This doesn't make any sense at all.  I can't even understand how they would know.  What if someone books through Airbnb?  They still charge you 10%?

    0Reply
  • Patrick OsterlingBusiness Member
    California/Nevada · Member since 2021 · 54 posts · 41 votes
    1y

    How could that be? VRBO does not have exclusive rights to your property. How could they see your other booking? I've never heard of this.  

    [email protected]775-830-7760
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  • Account Closed
    Rental Property Investor · New Braunfels, TX · Member since 2022 · 409 posts · 408 votes
    1y
    Quote from @Lauren Kormylo:

    Yeah, no way am I paying Vrbo 10% for bookings elsewhere.  Especially when they only charge me 8% for bookings through them.  Where does it say this in their terms of service? If it's not in there, they can't charge it.  

    How are you only getting 8% VRBO charges? Our average for almost 1.5 years is about 18%. 
    0Reply
  • Lauren Kormylo
    Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
    1y
    Quote from @Account Closed:
    Quote from @Lauren Kormylo:

    Yeah, no way am I paying Vrbo 10% for bookings elsewhere.  Especially when they only charge me 8% for bookings through them.  Where does it say this in their terms of service? If it's not in there, they can't charge it.  

    How are you only getting 8% VRBO charges? Our average for almost 1.5 years is about 18%. 

    In the example below, it shows my "Vrbo commission" is 5% and their "payment processing fee" is 3%, so they take a total of 8% (of the nightly rate + cleaning fee + pet fee). 
    The guest is also paying a $169 "guest service fee" to Vrbo.  I don't get to keep that, so that is subtracted from my payout here. So the guest is paying a 14.23% commission to Vrbo.

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

    Ugh, yet another ding? 

    0Reply
  • Jon Martin
    Member since 2022 · 1k+ posts · 1k+ votes
    1y
    Quote from @Patricia Andriolo-Bull:

    This doesn't make any sense at all.  I can't even understand how they would know.  What if someone books through Airbnb?  They still charge you 10%?


    Would not be a stretch to use AI or bots to do reverse image searches of your profile pics to scour the web for direct booking sites. 

    1Reply
  • Patricia Andriolo-Bull
    Member since 2022 · 527 posts · 413 votes
    1y
    Quote from @Lauren Kormylo:
    Quote from @Account Closed:
    Quote from @Lauren Kormylo:

    Yeah, no way am I paying Vrbo 10% for bookings elsewhere.  Especially when they only charge me 8% for bookings through them.  Where does it say this in their terms of service? If it's not in there, they can't charge it.  

    How are you only getting 8% VRBO charges? Our average for almost 1.5 years is about 18%. 

    In the example below, it shows my "Vrbo commission" is 5% and their "payment processing fee" is 3%, so they take a total of 8% (of the nightly rate + cleaning fee + pet fee). 
    The guest is also paying a $169 "guest service fee" to Vrbo.  I don't get to keep that, so that is subtracted from my payout here. So the guest is paying a 14.23% commission to Vrbo.

    You don’t have any taxes? I have 11% taxes and they charge their fees on taxes also so my effective rate is higher since I don’t keep the taxes but pay the fees on them. 
    0Reply
  • Patricia Andriolo-Bull
    Member since 2022 · 527 posts · 413 votes
    1y
    Quote from @Jon Martin:
    Quote from @Patricia Andriolo-Bull:

    This doesn't make any sense at all.  I can't even understand how they would know.  What if someone books through Airbnb?  They still charge you 10%?


    Would not be a stretch to use AI or bots to do reverse image searches of your profile pics to scour the web for direct booking sites. 

    No but how would they know the payment information. And commission implies some sort of marketing and sales relationship. If one is booking direct you incurs that marketing and sales expense directly. I’d love to read any updated terms and conditions they have that demonstrates a commission for private / direct sales. 
    1Reply
  • Patricia Andriolo-Bull
    Member since 2022 · 527 posts · 413 votes
    1y

    still not sure how they can prove this. 

    0Reply
  • Mark Driskell
    Investor · Fort Collins, CO · Member since 2016 · 11 posts · 3 votes
    1y

    That’s correct. If you have an integrated account and receive the inquiry from VRBO, but then book the guest off platform they double their commission rate to 10%.  I was never quite clear on the logic here. I get the fact that they want to be compensated for generating the initial inquiry however, wouldn’t they just charge the standard 5% rate?   why 10%?

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  • Lauren Kormylo
    Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes
    1y
    Quote from @Patricia Andriolo-Bull:
    Quote from @Lauren Kormylo:
    Quote from @Account Closed:
    Quote from @Lauren Kormylo:

    Yeah, no way am I paying Vrbo 10% for bookings elsewhere.  Especially when they only charge me 8% for bookings through them.  Where does it say this in their terms of service? If it's not in there, they can't charge it.  

    How are you only getting 8% VRBO charges? Our average for almost 1.5 years is about 18%. 

    In the example below, it shows my "Vrbo commission" is 5% and their "payment processing fee" is 3%, so they take a total of 8% (of the nightly rate + cleaning fee + pet fee). 
    The guest is also paying a $169 "guest service fee" to Vrbo.  I don't get to keep that, so that is subtracted from my payout here. So the guest is paying a 14.23% commission to Vrbo.

    You don’t have any taxes? I have 11% taxes and they charge their fees on taxes also so my effective rate is higher since I don’t keep the taxes but pay the fees on them. 

    No, no tax at all up till now.  But the state (Delaware) just enacted a 4.5% tax effective in January.  And my county is thinking about a 3% tax too. 

    Delaware has no sales tax, so has been slow to jump on the band wagon of taxing STRs.  But the thought of all that money has changed their minds.

    I can see Vrbo charging 3% on taxes for the credit card fee, but I didn't know they charge 5% commission on it too. 

    0Reply
  • Trent Reeve
    Atlanta · Member since 2022 · 712 posts · 642 votes
    1y
    Quote from @Mark Driskell:

    That’s correct. If you have an integrated account and receive the inquiry from VRBO, but then book the guest off platform they double their commission rate to 10%.  I was never quite clear on the logic here. I get the fact that they want to be compensated for generating the initial inquiry however, wouldn’t they just charge the standard 5% rate?   why 10%?


     how would they know who booked a specific date though? My software should only be telling VRBO what dates are blocked, not who booked them.

    0Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    1y

    VRBO wouldn't have any idea if a guest booked on our website.

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
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  • Patricia Andriolo-Bull
    Member since 2022 · 527 posts · 413 votes
    1y
    Quote from @Lauren Kormylo:
    Quote from @Patricia Andriolo-Bull:
    Quote from @Lauren Kormylo:
    Quote from @Account Closed:
    Quote from @Lauren Kormylo:

    Yeah, no way am I paying Vrbo 10% for bookings elsewhere.  Especially when they only charge me 8% for bookings through them.  Where does it say this in their terms of service? If it's not in there, they can't charge it.  

    How are you only getting 8% VRBO charges? Our average for almost 1.5 years is about 18%. 

    In the example below, it shows my "Vrbo commission" is 5% and their "payment processing fee" is 3%, so they take a total of 8% (of the nightly rate + cleaning fee + pet fee). 
    The guest is also paying a $169 "guest service fee" to Vrbo.  I don't get to keep that, so that is subtracted from my payout here. So the guest is paying a 14.23% commission to Vrbo.

    You don’t have any taxes? I have 11% taxes and they charge their fees on taxes also so my effective rate is higher since I don’t keep the taxes but pay the fees on them. 

    No, no tax at all up till now.  But the state (Delaware) just enacted a 4.5% tax effective in January.  And my county is thinking about a 3% tax too. 

    Delaware has no sales tax, so has been slow to jump on the band wagon of taxing STRs.  But the thought of all that money has changed their minds.

    I can see Vrbo charging 3% on taxes for the credit card fee, but I didn't know they charge 5% commission on it too. 

    It is only on the processing fee. It makes my processing fee 3.36%. 
    0Reply
  • Patricia Andriolo-Bull
    Member since 2022 · 527 posts · 413 votes
    1y
    Quote from @Mary Pastoral:

    Hi, 

    We had to call VRBO for a bill that they are charging us and this is how I found out that VRBO charges 10% commission for any booking that was made outside their platform. They said that they have access to external direct booking website and they charge higher commission rates if guests book direct vs VRBO platform. Is this your experience as well? Thank you. 


    If you don’t mind my asking, what PMS do you use? I’m looking at Ownerrez now and this gives me pause.  

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