Choosing between Airbnb and VRBO as a host can feel like a big decision. These two platforms are major players in the short-term rental market, each offering unique advantages, audiences, and features that can impact your hosting experience.
In this article, we’ll compare Airbnb and VRBO in-depth, covering the key differences and details that can help you decide which platform might work best for your goals.
Let’s dive in and explore the world of Airbnb and VRBO from a host’s perspective.
What Is Airbnb?
Founded in 2008, Airbnb transformed the way people think about travel and accommodation. It allowed everyday people to open up their homes—or unique spaces like tiny houses, yurts, and boats—to travelers from around the world.
With Airbnb, you don’t need to own a vacation home to start hosting; you can simply rent out a spare bedroom or even a shared space. Today, Airbnb operates in more than 220 countries, making it one of the most recognized brands in the travel industry.
For hosts, Airbnb provides a large and diverse audience, from budget travelers to high-end guests, and even those looking for unique experiences like camping or glamping.
This flexibility allows hosts with various property types to succeed on Airbnb, whether you have a downtown apartment, a beachside villa, or a countryside cabin.
Also, Read about How Does Airbnb Work for Hosts?
What Is VRBO?
VRBO, or Vacation Rentals by Owner, was established in 1995. Initially, it was designed specifically for vacation property owners who wanted to rent out their homes to guests without using a property management company.
VRBO was later acquired by HomeAway, and now it’s part of the Expedia Group. Unlike Airbnb, VRBO focuses solely on entire property rentals, which means they don’t allow shared or single-room listings.
This focus on whole-home rentals makes VRBO ideal for property owners with vacation homes, cabins, beach houses, and other full properties. Guests on VRBO are usually families and groups seeking privacy and convenience, often for extended stays.
As part of the Expedia Group, VRBO also benefits from being promoted on related travel sites, giving hosts extra exposure to vacation-minded travelers.
Airbnb vs. VRBO: Key Differences
Let’s explore the major differences between Airbnb and VRBO, so you can see how each platform might serve your unique needs as a host.
Rental Types Allowed
One of the main differences between Airbnb and VRBO lies in the types of properties they allow.
- Airbnb: Supports a wide variety of rental types, including shared rooms, private rooms, entire homes, and unique stays (e.g., treehouses, boats, and RVs). This diversity attracts a wide range of travelers, including solo adventurers, couples, and families.
- VRBO: Specializes in whole-property rentals only. This policy is ideal for hosts who prefer renting out their entire property and appealing to guests who value privacy, like families and larger groups.
For hosts with unique properties or those who want the flexibility to rent out a room in their primary home, Airbnb might be a better choice.
However, if you own a vacation property that is best suited for private rentals, VRBO’s audience may align more with your goals.
Audience and Demographics
Both platforms reach large audiences, but their typical guests differ slightly.
- Airbnb: With a global reach and variety of property types, Airbnb draws a diverse audience that includes solo travelers, couples, families, and even business travelers. It’s known for attracting younger guests, including millennials and Gen Z, who are often looking for unique, affordable, and experience-oriented stays.
- VRBO: Primarily attracts families and larger groups who seek entire properties. VRBO’s audience tends to be older and often includes groups traveling for family vacations or reunions. These guests typically look for comfort, space, and privacy.
For hosts who want to target families or longer stays, VRBO’s user base may be more aligned with your property type. Airbnb, on the other hand, is a great option if you’re looking to attract a broader range of travelers or guests interested in unique experiences.
Booking Process and Ease of Use
Both Airbnb and VRBO offer user-friendly interfaces for hosts, but there are some differences in their booking management and tools.
- Airbnb: Provides a highly rated mobile app and an easy-to-navigate host dashboard. Hosts can manage their listings, bookings, and guest communications right from their smartphones, making it convenient for those who are always on the go. Airbnb also offers tools for automated messaging and booking management, which can streamline the hosting process.
- VRBO: While also user-friendly, VRBO’s interface is particularly suited for vacation rental owners. It offers a simple dashboard for managing multiple listings, which can be beneficial for hosts with several properties. Some hosts feel VRBO’s layout and tools are geared toward property management, making it easier to handle vacation homes and longer-term rentals.
If you’re a host with a single property or a unique rental, Airbnb’s interface might feel more intuitive. VRBO, however, might appeal more to hosts who manage multiple vacation homes and want straightforward property management tools.
Must Read – Airbnb Reviews for Hosts: A 2024 Guide
Fees and Commission Structure
Fees are an essential factor for hosts because they impact your income from bookings. Let’s look at how Airbnb and VRBO differ in their fee structures.
- Airbnb: Charges a commission fee of 3% per booking, which is deducted from the host’s payout. Guests also pay a service fee, typically between 5-20%, which Airbnb calculates based on the total booking cost. This structure means hosts keep most of their earnings, and the guest fee varies with each booking.
- VRBO: Offers two pricing models. Hosts can either pay a 5% commission per booking, similar to Airbnb, or opt for an annual subscription fee (around $499 per year). For hosts who book frequently, the subscription model can be more cost-effective and help maximize profits, while the per-booking commission may be more suitable for occasional hosts.
The choice between Airbnb and VRBO might come down to your frequency of bookings. VRBO’s subscription model can save money for high-volume hosts, while Airbnb’s commission-based model may be ideal if you’re testing the waters or renting occasionally.
Cancellation Policies
Each platform’s cancellation policy can impact booking rates, income, and guest satisfaction, so having flexibility can be a benefit for hosts.
- Airbnb: Offers six different cancellation policies, ranging from “Flexible” to “Super Strict 60 Days.” This variety lets hosts select the level of flexibility that suits their needs, from fully refundable policies to strict, non-refundable options. More flexible policies can attract more bookings, while strict policies protect hosts from last-minute cancellations.
- VRBO: Offers three cancellation policies: flexible, moderate, and strict. While VRBO has fewer options than Airbnb, its policies provide enough flexibility for most hosts. VRBO’s strict policy has become popular among hosts who want security for longer stays.
Having several cancellation policies lets you tailor the booking requirements to your hosting goals and property type. Airbnb’s range may be appealing if you prefer more control over refunds, while VRBO’s simple options might work well for those with vacation homes.
Insurance and Protection Plans
Insurance and damage protection are crucial, as they can help hosts manage risks associated with property damage and liability.
- Airbnb: Includes AirCover, a comprehensive protection program that provides up to $1 million in liability and property damage coverage. AirCover is free for all hosts and automatically covers each booking, giving hosts peace of mind. The program includes additional support like income loss protection if bookings are canceled due to damage.
- VRBO: Also offers up to $1 million in liability insurance for hosts, but VRBO requires hosts to purchase property damage protection separately. VRBO’s add-on damage protection covers accidental damage, but hosts may have to manage separate claims and policies.
For hosts who value peace of mind, both Airbnb and VRBO provide substantial liability protection. However, Airbnb’s inclusive AirCover plan is a bonus for those who prefer comprehensive coverage without needing additional policies.
Conclusion
Choosing the best platform depends on your property type, desired guest demographic, and hosting goals. Both Airbnb and VRBO are powerful options for hosts, and each has unique benefits that may align better with certain property types and guest preferences.
If your goal is to maximize bookings, consider listing on both platforms to reach a wider audience. With this comparison, I hope you feel more confident in making the right choice for your hosting journey.
FAQs
Can I list my property on both Airbnb and VRBO?
Absolutely! Many hosts list on both Airbnb and VRBO to increase their visibility and reach different types of guests.
Which platform has lower fees for hosts?
VRBO’s annual subscription model can be more affordable for frequent bookings, while Airbnb’s per-booking commission might suit hosts who rent less often.
Do Airbnb and VRBO offer any kind of insurance?
Yes, both platforms provide liability insurance up to $1 million, though the specifics vary. Airbnb’s AirCover also includes property damage protection, which is automatic, while VRBO’s damage protection is optional.
Which platform is better for vacation rentals?
VRBO’s audience is vacation-focused and tends to book longer stays, while Airbnb caters to a broader audience, including solo and budget travelers.
Can I sync booking calendars for Airbnb and VRBO?
Yes, you can sync calendars across both platforms to prevent double bookings. Many hosts use third-party software to manage reservations from both sites.
Do I have to pay taxes on my Airbnb and VRBO income?
Yes, income from short-term rentals is typically taxable, and both Airbnb and VRBO offer resources to help hosts understand their tax obligations.