What is VRBO? Complete guide you need to know about how it works in 2024

Have you ever dreamed of finding the perfect vacation spot, that feels just like home but offers the excitement of a new destination? That’s exactly where VRBO comes in. VRBO, which stands for Vacation Rentals by Owner. It is an online marketplace that connects travelers with property owners offering short-term rentals. Imagine staying in a cozy cabin in the mountains, a beachfront villa, or a chic city apartment, all with the comfort and space that traditional hotels often lack.Let’s dive into what is VRBO, what makes VRBO stand out and how does VRBO work to create memorable vacations for both guests and hosts.

Established in 1995, VRBO has become a trusted platform for millions of travelers and property owners worldwide. It made easier than ever to find unique and personalized lodging experiences.

What does VRBO stand for?

VRBO, which stands for Vacation Rentals by Owner, is an online marketplace that connects property owners with travelers looking for short-term rental accommodations. Unlike traditional hotel stays, VRBO provides a wide array of unique properties, such as homes, condos, villas, and cabins. It provides guests with personalized and often more affordable lodging options.

Mission: VRBO’s mission is to create memorable and stress-free vacation experiences of rental properties directly from owners. They aim to provide an alternative to traditional hotels that is more comfortable, personalized, and suited to the unique preferences of each traveler.

Vision: VRBO envisions a world where every traveler can find the perfect home away from home, no matter where they go. They strive to foster a community where hosts can share their unique properties with guests, creating authentic and enriching travel experiences. Through innovation and customer-centric services, VRBO vacation rental aims to lead the industry and continuously enhance the way people travel.

Essential Features of VRBO

1. Diverse Property Listings: VRBO gives an extensive array of vacation rental options. It ranges from beachfront homes and mountain lodges to urban apartments. It also provides unique accommodations like castles and treehouses. This broad selection allows travelers to choose from properties that fit their specific preferences.
2. Advanced Search Filters: The platform’s sophisticated search functionality lets travelers customize their search to find exactly what they need. Filters include property type, location, price range, and essential amenities such as pet-friendliness, swimming pools, and high-speed internet. These filters help users narrow down their options and find accommodations that meet their specific requirements.
3. Instant Booking and Secure Payments: VRBO supports both instant bookings and reservation requests. Instant booking allows travelers to confirm their stay immediately. The reservation requests enable them to communicate with property owners for additional details before finalizing the reservation. Payments are processed securely through VRBO’s system, which includes options for payment protection and insurance to safeguard financial transactions.
4. Comprehensive Reviews and Ratings: The platform features a robust review and rating system where previous guests can leave feedback on their experiences. Travelers can read these reviews to gain insights into the quality of the property and the reliability of the host. This transparency helps in making informed decisions and ensures that travelers have realistic expectations about their stay.
5. User-Friendly Interface and 24/7 Support: VRBO site and app are designed for ease of use, with a straightforward interface that simplifies the booking process. Users can easily navigate through property listings, manage bookings, and communicate with hosts. Additionally, VRBO vacation rental provides round-the-clock customer support to assist with any issues or questions. It ensuring a smooth and hassle-free experience for both travelers and property owners.

Benefits of Using VRBO

For Travelers

Travelers can enjoy several distinct benefits when using VRBO:

1. Wide Variety of Properties: VRBO listing offers an extensive range of rental options. That includes spacious homes, luxurious villas, cozy cabins, and even unique accommodations such as houseboats and castles. This diverse selection caters to different needs, whether you’re organizing a family reunion, a romantic escape, or a solo adventure.

2. Advanced Search Filters: The platform’s search functionality allows users to refine their results based on various criteria. Like price range, property type, desired amenities (like pet-friendly options, pools, and Wi-Fi), and location preferences. This customization helps travelers quickly find properties that fit their specific needs and budget.

3. Home-Like Comforts: VRBO rentals often provide the comforts of home, including private kitchens, living spaces, and outdoor areas. These amenities can enhance the travel experience by offering more flexibility and a personal touch compared to traditional hotel rooms.

4. Clear Booking and Cancellation Policies: VRBO ensures a transparent booking process with detailed information on cancellation policies, which can range from flexible to strict. Additionally, the platform provides secure payment options and damage protection insurance, contributing to a hassle-free booking experience.

For Property Owners

Property owners can benefit from using VRBO in several ways:

1. Broad Exposure: Listing on VRBO gives property owners access to a large audience of travelers actively seeking vacation rentals. This increased visibility helps attract more bookings and maximize rental income.

2. Flexibility in Management: Owners have the ability to set their own rental rates, booking policies, and terms. This flexibility allows them to tailor their offerings to their preferences and market demands.

3. Integrated Management System: VRBO provides a comprehensive platform for managing bookings, communicating with guests, and processing payments. This integrated system simplifies the administrative aspects of renting out a property.

4. Support and Resources: The platform offers various tools and support to help owners maintain high standards for their properties. Owners can also respond to guest reviews, which can improve their property’s reputation and appeal.

Comparison with Other Platforms

When comparing VRBO to other platforms like Airbnb and Booking.com, several differences stand out:

1. VRBO vs. Airbnb: While both platforms specialize in vacation rentals, Airbnb offers additional features like shared rooms and unique experiences (such as guided tours or cooking classes). VRBO focuses exclusively on whole-property rentals, which might appeal more to those looking for privacy and a more traditional vacation rental experience.

2. VRBO vs. Booking.com: Booking.com is known for its broad selection of accommodations, including hotels and vacation rentals. While it offers a wide range of lodging options and competitive pricing, VRBO’s specialization in vacation rentals often provides a more personalized experience. VRBO’s emphasis on home-like comforts and diverse property types sets it apart from Booking.com’s broader focus on all types of accommodations.

Overall, VRBO stands out for its extensive range of vacation rental properties, customizable search options, and user-friendly platform for both travelers and property owners.

Learn more about how does booking.com work in an article by our team.

Understanding VRBO pricing

Here’s a detailed breakdown of how VRBO pricing works, covering all the essential components that contribute to the final cost of booking a property on the platform:

1. Base Rate

• Nightly Rate: The base rate is the fundamental cost that travelers pay per night to stay at a VRBO property. This rate is set by the property owner and can vary significantly based on various factors, including the size and type of the property (e.g., a condo, house, or luxury villa), the amenities provided (like a pool, hot tub, or beach access), and the property’s location (e.g., beachfront, urban center, or rural getaway).
• Weekly/Monthly Discounts: Many property owners offer discounts for longer stays, encouraging travelers to book for a week or more. These discounts are often applied automatically when a booking exceeds a certain number of nights. For example, a property might offer a 10% discount for weekly stays or a 20% discount for monthly stays.

2. Additional Fees

• Cleaning Fee: A cleaning fee is a one-time charge that covers the cost of cleaning the property after the guest’s stay. This fee varies depending on the size of the property and the level of cleaning required. Larger homes or properties that accommodate many guests typically have higher cleaning fees. This fee ensures that the property is professionally cleaned and prepared for the next guest.
• Pet Fee: If a property is pet-friendly, the owner may charge a pet fee. This fee compensates for the additional cleaning and potential wear and tear caused by pets. Pet fees can be a flat rate or per pet, depending on the owner’s policies.
• Extra Guest Fee: Some properties have a base rate that covers a specific number of guests. If the number of guests exceeds this limit, an additional fee per extra guest may be charged. This fee helps cover the increased utility costs and wear on the property due to the higher occupancy.
• Service Fee: VRBO charges a service fee to travelers, which typically ranges from 6% to 15% of the total booking cost. This fee helps VRBO cover the costs of operating the platform, including customer support, secure payment processing, and other services that ensure a smooth booking experience. The exact percentage depends on factors such as the length of stay, the total cost of the booking, and the location of the property.

3. Taxes

• Local Taxes: Depending on the location of the property, various local taxes may be applied to the booking. These can include occupancy taxes, which are often required by cities or counties, state sales taxes, and local tourism taxes. The tax rate can vary significantly depending on the property’s location, and these taxes are generally added to the total cost of the booking.
• VAT or Other Regional Taxes: In international locations, Value Added Tax (VAT) or other regional taxes may apply. These taxes are usually calculated as a percentage of the booking cost and are included in the final price displayed to the traveler.

4. Seasonal Pricing

• Peak Season Rates: VRBO property owners often adjust their pricing based on demand, which means that rates are higher during peak travel seasons. For example, prices might increase during holidays, summer vacations, or during local events or festivals. This dynamic allows owners to capitalize on periods of high demand.
• Off-Season Discounts: Conversely, during periods of low demand, such as off-season months or weekdays, property owners may reduce their rates to attract more bookings. This is a great opportunity for travelers to find more affordable rates on high-quality properties.

5. Dynamic Pricing

• Some property owners use dynamic pricing VRBO strategies, similar to those used by hotels and airlines. VRBO Dynamic pricing involves adjusting the nightly rate based on various factors, including current demand, the property’s availability, and pricing trends in the local market. This means that prices can fluctuate, often increasing closer to popular travel dates or decreasing to fill last-minute vacancies.

6. Deposit

• Security Deposit: A security deposit is an amount held by the property owner to cover potential damages during the guest’s stay. The amount of the deposit can vary depending on the property, ranging from a few hundred to several thousand dollars. Security deposits are typically refundable, provided that no damage occurs during the stay. The refund process and timeline are usually outlined in the rental agreement.

7. Payment Terms

• Upfront Payment: Depending on the property and the booking terms, travelers may be required to pay the full booking amount upfront at the time of reservation. This is more common for short stays or last-minute bookings.
• Partial Payment: For bookings made well in advance or for longer stays, property owners may allow travelers to pay a deposit upfront, with the remaining balance due closer to the check-in date. This can make it easier for travelers to secure a booking without having to pay the entire amount immediately.
• Cancellation Policy: The cancellation policy set by the property owner can also influence pricing. Properties with more flexible cancellation policies, such as full refunds for cancellations made well in advance, may charge slightly higher rates to offset the risk of lost bookings.

8. Special Offers

• Many property owners on VRBO offer special promotions to attract bookings. These might include last-minute discounts, early booking discounts, or reduced rates for extended stays. These offers are often highlighted on the property listing and can provide significant savings for travelers who are flexible with their travel dates.

Understanding the various components of VRBO pricing helps both travelers and hosts navigate the platform more effectively. Travelers can better plan their budgets by knowing what to expect in terms of fees and potential discounts, while hosts can set competitive prices that maximize their rental income.

What is VRBO service fee?

The VRBO service fee is a charge added to the total cost of a booking on the VRBO platform. This fee is used by VRBO to cover the costs of providing a secure and reliable service. It includes customer support, payment processing, and the maintenance of their platform.

Key Points About VRBO Service Fee:

1. Percentage-Based: The service fee is typically a percentage of the total booking cost, which usually ranges between 6% and 15%. The exact percentage can vary based on the rental price, the length of stay, and the specific property.
2. What It Covers: The fee helps VRBO maintain its platform, provide 24/7 customer support, ensure secure transactions, and offer protection for travelers and hosts, such as fraud prevention and assistance with disputes.
3. Transparency: VRBO clearly displays the service fee in the pricing breakdown before travelers finalize their booking, so there are no hidden costs.
4. Non-Refundable: Generally, the VRBO service fee is non-refundable, even if a booking is canceled, although exceptions may apply in specific situations, such as cancellations due to extenuating circumstances.

Understanding this fee is important for both travelers and hosts, as it impacts the overall cost of renting a vacation property through VRBO.

Who Can Benefit from VRBO?

Types of Travelers

Families: VRBO is an excellent choice for families looking for spacious accommodations that offer home-like amenities. With options like multi-bedroom homes and villas, families can enjoy ample space for everyone. This includes private bedrooms, large living areas, and fully equipped kitchens. These features make it easier to maintain routines and prepare meals, contributing to a more comfortable and convenient family vacation.

Groups: Groups of friends or extended families traveling together can benefit greatly from VRBO’s diverse property options. Large homes and villas can accommodate multiple people, providing communal spaces for socializing and private rooms for individual relaxation. This setup is ideal for reunions, celebrations, or group vacations, allowing everyone to stay together under one roof.

Couples: Couples seeking a romantic getaway can find charming and intimate properties on VRBO. Options like cozy cottages, beachfront condos, and secluded cabins offer privacy and a romantic atmosphere, perfect for honeymoons, anniversaries, or just a peaceful retreat for two.

Solo Travelers: Solo travelers looking for a more personal and unique experience. Compared to traditional hotels can benefit from VRBO’s variety of smaller accommodations. Condos, apartments, and one-bedroom homes provide solo travelers with the comfort of home and the opportunity to stay in interesting locations that reflect their personal tastes and interests.

Pet Owners: VRBO offers property for pets, making it easier for travelers to bring their furry friends along. These accommodations often come with amenities suited for pets. Such as fenced yards and proximity to parks or trails, ensuring a comfortable stay for both the pet and the owner.

Property Owners and Managers

Individual Property Owners: VRBO provides individual property owners with a platform to reach a large audience of potential renters. By listing their properties on VRBO, owners can attract bookings and generate income from their vacation homes. The platform’s tools and resources help owners manage their listings efficiently, set competitive rates, and maintain high standards to attract positive reviews.

Property Managers: Property managers handling multiple vacation rentals can benefit from VRBO’s integrated management system. This system allows them to oversee multiple properties, manage bookings, communicate with guests, and handle payments all in one place. VRBO’s extensive reach and marketing tools help property managers maximize occupancy rates and revenue across their portfolio of properties.

Real Estate Investors: Investors who own vacation rental properties can leverage VRBO to maximize their return on investment. By listing properties on a popular and trusted platform, they can ensure high visibility and attract a steady stream of guests. VRBO’s comprehensive support and resources also assist investors in maintaining their properties and managing guest relations. This contributes to the long-term success of their investment.

Hosts Offering Unique Experiences: Owners of unique properties, such as houseboats, castles, or historical homes, can use VRBO to reach travelers looking for one-of-a-kind experiences. These unique listings often attract niche markets and can command higher rental rates due to their distinctive appeal.

In summary, VRBO caters to a wide range of travelers by offering diverse and customizable accommodation options. It also provides significant benefits to property owners and managers by enhancing visibility, streamlining management processes, and supporting high standards of guest service.

How Does VRBO Work?

VRBO (Vacation Rentals by Owner) provides a platform that connects property owners with travelers looking for unique and comfortable vacation accommodations. Here’s a step-by-step guide on how VRBO goes for both travelers and property owners:

For Traveler

Searching for a Property

• Browse and Filter: Travelers start by entering their destination, travel dates, and the number of guests on the VRBO website or app. They can use advanced filters to narrow down their search based on property type, price range, amenities (e.g., pet-friendly, pool, Wi-Fi), and specific needs like accessibility features.
• Explore Listings: The search results display a range of available properties with photos, descriptions, pricing, and amenities. Travelers can view detailed property listings, including information about the location, house rules, and guest reviews.

Booking a Property

• Instant Booking or Reservation Request: Depending on the property, travelers can either book instantly or submit a reservation request. Instant booking confirms the reservation immediately, while a reservation request requires the property owner’s approval.
• Review and Confirm: Travelers review the booking details, including the total cost (which may include additional fees like cleaning or service fees), and enter their payment information. VRBO provides secure payment options to protect financial transactions.
• Receive Confirmation: Once the booking is confirmed, travelers receive a confirmation email with all the necessary details, including the property address, check-in instructions, and contact information for the property owner or manager.

During the Stay

• Check-In and Enjoy: Travelers follow the provided check-in instructions, which may include keyless entry or meeting the owner for keys. During the stay, they can enjoy the amenities and comforts of the property.
• Communicate with the Owner: If any issues or questions arise, travelers can communicate directly with the property owner or manager through the VRBO platform.

After the Stay

• Check-Out: Travelers follow the check-out instructions provided by the owner, which may include things like tidying up or returning keys.
• Leave a Review: After the stay, travelers can leave a review of the property, sharing their experiences and providing feedback on the property and the host.

For Property Owners

Listing a Property

• Create a Listing: Owners create a listing by providing detailed information about their property, including photos, descriptions, amenities, house rules, and pricing. The more detailed and attractive the listing, the better it will perform in searches.
• Set Policies: Owners set their booking policies, such as minimum stay requirements, cancellation policies, and house rules. They can also decide whether to offer instant booking or require reservation requests.

Managing Bookings

• Receive Bookings: Owners receive notifications of new bookings or reservation requests. For reservation requests, they can review the traveler’s profile and communicate with them before approving or declining the request.
• Communicate with Guests: Owners can communicate with guests through the VRBO platform to answer questions, provide check-in instructions, and offer local tips.

Preparing for Guests

• Prepare the Property: Before guests arrive, owners ensure the property is clean, well-maintained, and ready for their stay. This may include stocking necessary supplies and performing any required maintenance.
• Check-In Process: Owners provide clear check-in instructions, which may involve keyless entry codes or arrangements to hand over keys in person.

During the Stay

• Support Guests: Owners remain available to support guests during their stay, addressing any issues or questions that arise. Effective communication helps ensure a positive guest experience.

After the Stay

• Check-Out and Cleaning: After guests check out, owners may inspect the property and arrange for cleaning and preparation for the next guests.
• Review Guests: Owners can also leave reviews for guests, which helps other property owners when evaluating future booking requests.

Earnings and Payments

• Receive Payments: VRBO handles the payment process, ensuring secure transactions. Owners receive payments according to the schedule set by VRBO, typically after the guest’s check-in date.

By providing a comprehensive platform for both travelers and property owners, VRBO facilitates the process of finding, booking, and managing vacation rentals, making it easier for travelers to find unique accommodations and for owners to maximize the potential of their rental properties.

Future of VRBO

Trends in the Vacation Rental Industry

The vacation rental industry is experiencing significant shifts and trends that are likely to shape the future of platforms like VRBO. One major trend is the increasing preference for personalized travel experiences. Travelers are seeking unique, local, and authentic stays that reflect the culture and charm of the destination, moving away from traditional hotel experiences. This trend benefits VRBO, which offers a wide range of distinctive properties, from cozy cabins to luxurious villas.

Another trend is the rise of remote work and extended stays. The pandemic has accelerated the acceptance of remote work, leading more people to book longer stays in vacation rentals where they can work comfortably. This has increased demand for properties with reliable Wi-Fi, dedicated workspaces, and home-like amenities. VRBO’s diverse listings cater to this trend, making it a preferred choice for digital nomads and remote workers.

Sustainability and eco-friendly travel are also becoming more important to travelers. Guests are increasingly looking for properties that align with their values, such as those with sustainable practices, energy-efficient appliances, and eco-friendly amenities. VRBO can leverage this trend by highlighting eco-conscious properties and supporting owners in implementing sustainable practices.

Technological advancements are transforming the way vacation rentals are managed and experienced. Smart home technology, such as keyless entry, smart thermostats, and remote-controlled lighting, enhances the guest experience by providing convenience and security. VRBO can stay ahead by integrating these technologies into its platform and encouraging property owners to adopt them.

VRBO’s Plans for Growth and Innovation

To capitalize on these industry trends, VRBO is likely to focus on several key areas for growth and innovation.

Enhanced User Experience

VRBO is continually improving its platform to provide a seamless user experience. This includes refining search algorithms, offering personalized recommendations, and enhancing the booking and payment processes. By leveraging artificial intelligence and machine learning, VRBO can better understand user preferences and deliver more relevant property suggestions.

Expanding Property Listings

VRBO aims to expand its property listings to include even more diverse and unique accommodations. This includes targeting underrepresented markets and encouraging property owners to list distinctive properties that can attract niche travelers looking for unique experiences.

Sustainability Initiatives

As travelers increasingly prioritize sustainability, VRBO is likely to promote eco-friendly practices among its property owners. This could involve offering incentives for green certifications, highlighting sustainable properties, and providing resources for owners to implement environmentally friendly measures.

Technology Integration

VRBO is expected to integrate more smart home technologies into its platform to enhance the guest experience. This includes features like keyless entry, smart home devices, and seamless connectivity options. By staying at the forefront of technological advancements, VRBO can offer added convenience and security to both guests and property owners.

Partnerships and Collaborations

VRBO may seek strategic partnerships and collaborations to enhance its offerings. This could involve partnering with travel service providers, local experience curators, and technology companies to provide a more comprehensive and enriched travel experience for its users.

Marketing and Outreach

To attract a broader audience, VRBO is likely to invest in targeted marketing campaigns. This includes leveraging social media, influencer partnerships, and content marketing to reach different demographics and promote the unique advantages of booking through VRBO.

Focus on Safety and Cleanliness

In response to ongoing concerns about health and safety, VRBO is expected to maintain a strong focus on cleanliness and safety standards. This includes providing guidelines and resources for property owners to ensure their rentals meet high standards of hygiene and safety, which is a significant factor for travelers in the current climate.

In conclusion, the future of VRBO looks promising as it adapts to emerging trends in the vacation rental industry. By focusing on personalized experiences, sustainability, technology integration, and strategic growth initiatives, VRBO is well-positioned to continue being a leading platform in the vacation rental market.

Building your own VRBO?

If you are planning to start your own vacation rental clone, or your professional networking website, the odds could be challenging, especially in today’s time.

However, we have made your journey a bit easier from the development point of view. Conceptualizing, developing, and implementing a product like VRBO is a very resource-intensive project. With the help of our ready-to-go product, BistroStays, you can save most of these efforts. It is a bundled vacation rental software that enablesyou to get started with your own online Accommodation Booking website or app and you can always ask our team to customize it further to suit the best of your needs. So, what are you waiting for? Connect with us today to arrange for a demo.