Vrbo Imposes Fixed 12% Commission on Hosts Starting October 29
Vrbo is moving most of its hosts to a fixed 12% commission starting October 29, in a change that sparked widespread objections from hosts.
The Vrbo platform is adopting a fixed 12% commission for most hosts starting October 29, after previous traveler fees ranged between 11% and 14%.
The change includes delaying payouts for hosts who subscribe to the platform's payment service, along with introducing a new variable guest fee.
The decision sparked widespread objections from hosts, while Vrbo plans to ease the rate parity rule that obligates them to list the same price across all channels.
The shift comes after similar steps in fee structures implemented by Booking.com and Airbnb.
What Do These Terms Mean?
Fixed Commission: A set percentage charged by the platform for each booking regardless of the accommodation price, instead of variable percentages.
Rate Parity Rule: A condition requiring the display of the same price across all sales channels, preventing advertising a cheaper price outside the platform.
Short-Term Rental: Renting housing for short periods such as nights and weeks via online platforms instead of annual contracts.
Variable Guest Fee: A fee charged to the guest that changes based on seasonal factors or accommodation price, instead of a fixed percentage.
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