Whether you’ve just purchased your first short-term rental property, already have a thriving business, or are just exploring your options, you might have questions about your online distribution strategy. What site or sites should I list on? What are the differences? What’s best for my business?
Vrbo and HomeAway can bring many reservations to your property, and let’s begin by clarifying that Vrbo and HomeAway are actually the same company. Both brands are owned by the Expedia Group, which also owns Orbitz, Hotels.com, Travelocity, and more. If you’re listed on Vrbo, you’re automatically listed on HomeAway too, so you don’t need to decide between the two.
In this article, we’ll compare Vrbo/HomeAway to its closest competitors: Airbnb, Tripadvisor Rentals/FlipKey, and Booking.com. By the end of this article, you’ll be able to make an educated decision about which channels make the most sense for your vacation rental business.
Vrbo vs. Airbnb
We can’t write an article about vacation rentals without mentioning the most talked-about player in the game: Airbnb. Airbnb generates about three times the web traffic as Vrbo/HomeAway, and the site has over 7 million listings.
In addition to homes and apartments, Airbnb allows hosts to list shared spaces, which could be private bedrooms within homes or even shared rooms, like a couch in a shared living room. Vrbo and HomeAway do not allow these listings on their site. As a result, you may notice some more competition from a price standpoint on Airbnb versus Vrbo. If someone is looking for the cheapest place to stay, they’ll have a lot more options on Airbnb.
Airbnb and Vrbo both charge guests booking fees, but the commission that property owners pay is slightly different between the two sites. Airbnb’s commission is usually always 3%, while Vrbo property owners have the choice of a $499 yearly subscription or a 5% commission. Unless your property is really raking in the cash, you’ll probably end up paying more commission on Vrbo.
Vrbo and HomeAway have a strong presence in traditional vacation rental markets in the United States, like Orlando and Destin, Florida, which means properties located in those areas can find a lot of success on Vrbo/HomeAway. Airbnb, however, taps into markets and segments of guests that Vrbo/HomeAway doesn’t, like business travelers. With the Airbnb for Work program, Airbnb hosts can highlight amenities that are most relevant for business travelers, like laptop-friendly workspaces and WiFi, and corporate traveler managers can book employee travel through a special tool. Properties located in urban markets or areas with a big business travel component can benefit from using Airbnb as a distribution channel.
Vrbo vs. Tripadvisor
Tripadvisor Rentals, the vacation rental branch of popular review site Tripadvisor.com, and its sister site FlipKey make a pretty even match for Vrbo/HomeAway. Both sites capture the traditional vacation rental market: home and condo rental, mostly within the United States, in leisure destinations.
Like Airbnb, Tripadvisor’s commission is a low 3%, while Vrbo charges either 5% or a $499 annual fee. However, Tripadvisor charges a higher booking fee to guests, sometimes up to 16% compared to Vrbo’s fee, which is around 10%. This high fee may discourage guests from booking a property on Tripadvisor Rentals if they can find it elsewhere at a lower price.
Though data on web traffic to Tripadvisor Rentals isn’t readily available (only on the main Tripadvisor.com site, which includes hotel reviews, restaurant recommendations, package tours, and more), FlipKey receives just over half a million monthly visitors, which is significantly less than Vrbo and HomeAway. With many fewer website visitors, it’s unrealistic to expect that your property will receive more bookings via Tripadvisor Rental/FlipKey than Vrbo/HomeAway.
That being said, several reviewers mention that the Tripadvisor Rentals dashboard is easy to use, so if you can invest the time in setting up your listing, there’s little to no risk to your business. If you happen to generate a few bookings here and there via Tripadvisor, then it’s a nice little bonus. But we’d recommend focusing your efforts elsewhere if you only want to list on one site.
Vrbo vs. Booking.com
With a whopping 400 million monthly visitors, Booking.com’s web traffic dwarfs that of Vrbo/HomeAway. In fact, Booking.com is the most popular accommodation website in the world! With stats like that, why wouldn’t you want to list your property on Booking.com?
Though Booking.com offers a lot of benefits, there are a few downsides that might affect a vacation rental owner’s decision. For one, Booking.com has over 28 million listings compared to Vrbo’s 2 million. That’s a lot more competition in each market, including hotels, resorts, hostels, and more. It can be more difficult for your property to stand out in the search results.
Another aspect to consider is Booking.com’s commission, which is 15%. That’s three times higher than Vrbo’s, so for a property owner who’s just starting out, it might not make sense to fork over that much commission. In addition, Booking.com’s payment model is a little bit different than Vrbo’s. Booking.com allows its partners to charge guest credit cards directly, which may add to a property owner’s workload and can result in credit card processing fees of up to 5%. Alternatively, you can opt to use Payments by Booking.com which disburses funds via bank transfer. Booking.com also does not remit tax on your behalf, while Vrbo does in many markets. Furthermore, Booking.com’s partner dashboard, called the Extranet, is packed with features, which can be great for experienced hosts but overwhelming at first for novices.
However, savvy property managers who are eager to expand their online presence can reach larger audiences they can on Vrbo and HomeAway, so Booking.com remains a good option despite the higher commission.
Ready to start welcoming guests? Vrbo is an essential distribution channel for property owners who have traditional vacation rentals (homes, condos, or apartments) in leisure-focused areas. It’s not as essential for urban properties or international properties, and it’s not an option for short-term rentals that are shared spaces, like private rooms within homes. Property owners looking to get as many eyes on their property as possible should consider listing on Airbnb in addition to Vrbo and possibly on Booking.com too. For maximum exposure, your distribution strategy may include all four sites.
More helpful content and tips for Vrbo (Homeaway) Hosts:
Listing on Vrbo (everything you need to know)
Guide to Vacation Rental Listing Sites
