Vrbo Vs. Airbnb: Which Is Better In 2024?

Leisure travel and vacations were once reserved for the affluent, who could manage exorbitant hotel and resort costs. But today, anyone can live their dream getaway thanks to the rise of vacation rental platforms like Airbnb.

Whether envisioning a retreat in Paris or fancying the charm of off-the-beaten-path locales, these platforms make it possible to find snug accommodations anywhere. Of the many vacation rental platforms that have emerged, Vrbo and Airbnb are the most popular.

But which is better Airbnb or Vrbo? What's the difference between Vrbo and Airbnb? Is Vrbo like Airbnb? This article explores the answers to these and more questions regarding these two platforms.

• What Is Vrbo?
• What Is Airbnb? 
• Vrbo vs Airbnb: Key Differences At A Glance
  • Rental Types
    
  • Listings
  • Property & Audience Profile
  • Customer Service
    
  • Service Fees
    
  • Cancellation Policies
    
  • Property Damage Protection
    
  • Payments
    
  • Discounts
  • Safety
  • Reviews
  • Overall Booking Process
    
• Vrbo Vs. Airbnb: Frequently Asked Questions
  
• Final Thoughts: Is Vrbo Or Airbnb Better?

What Is Vrbo?

Vrbo (Vacation Rentals By Owner) is the first-ever vacation rental platform in the world, having launched in 1995. As its full name implies, it's an online platform that features vacation rentals listed by the property owner.

The platform, pronounced as Vrbo, was initially launched by David Clouse, an Aurora condo owner who wanted to rent his property out for the short term while skipping the hassle of a property management agency. Shortly after launching, it turned out more homeowners had the same problem, leading to his site quickly gaining traction.

Initially, Vrbo hosts paid an annual fee to promote their properties. However, in response to the emergence of competing platforms like Airbnb, the site switched to the pay-per-rental model. It’s worth noting that Vrbo was acquired by Homeaway in 2006, and in 2015, the Expedia Group acquired Homeaway, making Vrbo part of the group.

HomeAway and Vrbo merged four years later and were officially rebranded as Vrbo. Today, Vrbo is a widely used platform with over two million vacation rental listings spread out in 190 countries.

Read Also: How To Start A Rental Property Business: A Step-By-Step Guide

What Is Airbnb?

Airbnb is one of the largest online marketplaces for short-term rentals. Headquartered in San Francisco, the platform boasts an impressive seven million short-term rental listings spanning approximately 100,000 cities and 220 countries worldwide.

Airbnb was born in 2008 out of the ingenuity of two industrial designers, Brian Chesky and Joe Gebbia. New to San Francisco and short on rent for their loft, the ambitious duo opened their apartment to travelers who’d often miss out on hotel space while attending trade shows. They would set up air mattresses in their living room and even went the extra mile to make stays cozy for their guests by preparing homemade breakfasts. This inspired them to name their service Air Bed and Breakfast, later shortened to Airbnb. Soon, the pair set up a website that went on to become one of the most popular peer-to-peer property rental platforms in the world.

While their apartment is still listed on Airbnb (though rarely available), the platform has since expanded its offerings to include various accommodations, ranging from private rooms to whole vacation homes to traditional hotel rooms. It has also evolved to include Airbnb experiences, which are in-person activities or multiday trips hosted by local experts in different parts of the world for a fee. Read on to discover the difference between Airbnb and Vrbo.

Vrbo vs Airbnb: Key Differences At A Glance

Now that you know what they are, what is the difference between Vrbo and Airbnb?

We’ll get into the nitty gritty of Vrbo vs Airbnb to help you grasp the differences and unravel the better fit for when you’re traveling for your real estate investment endeavors:

Rental Types

From beach houses, mountain cabins, and townhouses to unique offerings like the hobbit hole home in Orondo, Washington, both Airbnb and Vrbo offer an array of types of properties for short-term rental listings.

However, a notable distinction lies in their approach; while Airbnb allows travelers to book single rooms within a rental, Vrbo exclusively lets out entire homes. In addition to private rooms, Airbnb offers multiple rental categories to cater to different needs. These include Airbnb Plus and the following:

•  Shared rooms: Although rare, Airbnb under this category usually offers accommodations where renters share their sleeping space with others
•  Airbnb for work: Under this program, Airbnb offers accommodations tailored to business travelers' needs. They usually feature amenities like workspaces, high-speed Wi-Fi, and on-site laundry and are typically located near public commute hubs or city centers. Bookings are done through a separate dashboard designed to streamline the process for corporations and companies.
•  Unique stays: These are rentals that offer something out of the ordinary, such as tree houses and yurts converted into short-term accommodations
•  Airbnb luxe: For this category, Airbnb offers highly luxurious rentals with dedicated trip designers ensuring a premium guest experience

So, is Airbnb or Vrbo better regarding rental types? Well, in essence, Airbnb offers more flexibility than Vrbo. With options ranging from private and shared rooms to specialized categories like Airbnb for work, it is particularly suitable for real estate investors or business travelers seeking quality single-person accommodations while undertaking corporate endeavors in different cities.

Listings

Another pivotal difference in the battle between Airbnb versus Vrbo is the number of property listings each platform offers.

Airbnb boasts an extensive listing network with over 7.7+ million listings, more than 5+ million hosts, and a span of 100,000 cities worldwide. The platform boasts a global footprint operating in approximately 191 countries. Additionally, Airbnb offers a broad spectrum of property types.

While Vrbo doesn’t usually disclose its total listings, statistics by independent bodies suggest that this pioneering platform hosts about two million short-term rental listings in 190 countries.

Why does the number of listings matter?

More listings translate to a richer variety of stays and ensure wider coverage. That means you have a better shot at finding accommodations in remote or off-the-beaten-path destinations with Airbnb than you do with Vrbo.

Additionally, the higher the number of listings in a particular location, the more affordable accommodations will be, making Airbnb an ideal option for the budget-conscious property investor looking to build a portfolio in a new market.

Property & Audience Profile

While Airbnb has everything from private rooms and shared spaces to luxurious properties in urban centers, many listings on Vrbo are usually high-end properties such as condos, cabins, and cottages in scenic or rural locations. Ultimately, both Airbnb and Vrbo present quite diverse property profiles.

However, they do not cater to similar audiences. Airbnb typically attracts a younger, adventurous, and budget-conscious guest demographic. Its audience is drawn to the private and shared room options and the immersive local experiences through the Airbnb Experiences program. The platform’s strong presence in urban areas and emerging commercial hubs makes it popular among urban travelers.

Who Is Airbnb Better For?

Airbnb also attracts corporate travelers, including real estate investors, thanks to the seamless booking process and specialized accommodations offered under the Airbnb for Work program. Additionally, the types of properties Airbnb is commonly associated with short-term vacation rentals.

However, while Airbnb primarily attracts a young, experience-driven, and budget-conscious demographic, the platform has recently begun attracting discerning travelers thanks to programs like Airbnb Luxe.

Who Is Vrbo Better For?

Vrbo, on the other hand, draws families and larger groups of people traveling together primarily because it exclusively offers entire places for rent.

Moreover, most of its listings usually have features suitable for large groups, such as spacious living spaces with multiple bedrooms and bathrooms and amenities like swimming pools.

Since most of its inventory is in popular tourist destinations, Vrbo appeals to older, affluent travelers who prioritize comfort over costs. Additionally, the platform is often associated with long-term vacation rentals.

While Airbnb typically draws a younger, experience-driven, budget-conscious, and mostly urban crowd, Vrbo’s focus on entire properties makes it an attractive option for families, large groups, and older and well-heeled travelers in sought-after tourist destinations.

Customer Service

Both rental property platforms offer a customer support number you can call to report and resolve your concerns. Furthermore, both platforms feature an online resolution center where guests can submit their issues. However, resolution may take longer through this route.

However, it’s important to note that while both platforms offer means to reach the customer service team, Airbnb’s customer support system isn’t five-star. Some Airbnb hosts have expressed concerns about the platform favoring guests during disputes rather than amicably resolving conflicts. On the other hand, numerous guests report dissatisfaction with being connected to service agents ill-equipped to address their concerns.

In contrast, Vrbo’s customer support services rarely attract complaints. If anything, most Vrbo guests and hosts applaud the platform for timely and efficient customer service. These positive customer support experiences may be attributed, in part, to the fact that Vrbo has fewer properties to manage than its competitor. In addition to 24/7 telephone support, Vrbo offers a 24/7 online chat function, damage protection policies, and even trip insurance!

Ultimately, if customer service is one of your key considerations when securing a stay, Vrbo emerges as the top choice. Its multiple customer service avenues and guest-friendly policies position it as a vacation rental platform committed to promptly and amicably resolving customer issues.

Service Fees

Although Airbnb and Vrbo support free listings, they charge service fees to cover operational costs and generate profits. Airbnb offers two service fee structures: a split fee system and a host-only structure.

The split fee, preferred by many hosts, is precisely what it sounds like; the service charges are split between the host and the guest. The host typically pays a 3% commission, but this may escalate to 5% or more for Airbnb owners with rigorous cancellation policies and those with an Airbnb listing in high-demand locations like Italy. This commission is automatically deducted from the booking subtotal upon payout.

The guests pay the remaining service fee, usually 14.2% of their booking subtotal. However, this percentage can vary based on factors like the duration of stay. Notably, Airbnb transparently details these factors before booking so guests may know what they’re signing up for before they hit the reserve button.

With Airbnb’s host-only fee structure, the host shoulders the entire service charge, usually between 14% and 16%. However, as with the split service fee system, the charges might be higher if a host imposes strict cancellation policies. It’s important to note that while regular Airbnb hosts are free to choose between the split-fee and host-only fee systems, software-connected hosts and those listing traditional hospitality accommodations such as hotels and serviced apartments must use the host-only fee system.

Vrbo uses a pay-per-booking system where the service fee is deducted as a percentage of the total reservation amount, excluding taxes. While the service fee amount varies based on the listing price, the vacation site typically imposes a 5% commission fee on the rental amount plus any extra fees hosts may charge the traveler, such as the cleaning fee.

Beyond the commission, Vrbo applies a 3% credit card processing fee on the total amount hosts receive from guests. Nonetheless, note hosts utilizing property management software to manage their Vrbo rental service encounter specific fees. For bookings made directly through any of Vrbo’s sites, they pay a 5% booking fee. However, if the booking originates from Vrbo but reservations are made through the property management system, the host pays a 10% booking fee on the rental amount and mandatory fees.

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Cancellation Policies

Airbnb offers three main cancellation policies: strict, moderate, and flexible.

Under these policies, renters get free cancellation or pay 50% of their booking amount, depending on when they cancel. Airbnb also offers hosts 60-day super strict and 30-day super strict cancellation policies where they’re automatically paid 50% of the booking amount even if the guest cancels within the specified timeframe.

However, Airbnb hosts who impose these policies often pay a higher service charge.

Similarly, Vrbo also offers strict, firm, and moderate cancellation policies whereby guests can cancel for free or pay 50% of the reservation amount if they don’t cancel within the specified timeframe.

The platform also offers a relaxed cancellation option where guests get a full refund (free cancellation) when they cancel 14 days before check-in or a 50% refund of the reservation amount if they cancel seven days prior. Note it’s essential to review the refund policy when booking with Vrbo because they also offer hosts a custom cancellation option, allowing them to set their own cancellation rules.

Property Damage Protection

To safeguard a host’s rental property and contents, Airbnb has a host guarantee program offering up to $3 million in coverage for damages caused by guests during their stay. However, to qualify for reimbursement, the host must document the damage and request a reimbursement within 14 days after checkout.

Vrbo doesn’t offer a damage protection program. However, hosts are allowed to include a refundable damage deposit amount that the guests will be responsible for should they cause any damage. Vrbo will automatically deduct this amount from the guest’s booking credit card, but the host must ensure they file a claim within 14 days of checkout. If no damage is caused, the guest gets a full refund.

Payments

From bank transfers, FastPay, and Western Union to a Payoneer debit card and Paypal, Airbnb hosts have multiple payout options. These earnings are typically sent 24 hours after guest check-in, but for extended stays, for instance, over three weeks, Airbnb sends the host’s payment in monthly installments.

Vrbo hosts, on the other hand, are paid via VISA, AMEX, or Mastercard. Processing is done via the site’s secure payment system. They may also opt for credit card charges via processes like Stripe.

Discounts

Want to start flipping properties or wholesaling real estate in a different state? You need to build a network and establish a physical presence which might mean temporarily moving and living in your target state.

Fortunately, Airbnb and Vrbo not only have you sorted out the accommodation part but will also offer money-saving discounts for an extended stay. While the discounted amount varies based on your stay, generally, both rental sites offer great deals on stays that are a week or longer.

Read Also: How To Invest In Real Estate With No Money: 11 Best Strategies

Safety

While vacation rentals offer impressive perks, opting for one automatically means foregoing the safety of staying in a hotel or resort. Thankfully, Airbnb and Vrbo have both implemented measures to safeguard the safety of both hosts and guests.

Airbnb requires hosts and guests to verify their identity by submitting personal details like government-issued IDs or passports during sign-up. The platform also conducts background checks on all its hosts and guests and screens them against regulatory, sanction, and terrorist watch lists.

The site also employs machine learning to analyze guest risk before confirming reservations. In contrast, guests can communicate with hosts and perform background checks before making reservations.

Moreover, Airbnb applies AirCover to each booking, providing guests with a 24-hour safety phone number and protecting them from host cancellations, check-in issues, and listing misrepresentations. The platform also recently introduced a solo traveler in-app safety measure that allows guests who book private or shared rooms to share their reservation with family or friends.

Vrbo offers the Book with Confidence Guarantee, which assigns guests a dedicated team member to answer their questions before and during their trip. The guarantee also features protection against fraudulent listings and rebooking assistance should any issues arise.

Guests and hosts are also strictly required to communicate through the platform, which helps keep either party safe.

Additionally, Vrbo offers a 24/7 helpline that guests can contact in case of problems.

Reviews

Reviews are a pivotal part of our digital world today, and both Airbnb and Vrbo have systems to facilitate them.

On Vrbo, hosts and guests have up to a year after the checkout date to drop their reviews. Once a review is submitted, Vrbo gives the other party 14 days to respond or share their feedback. The platform only publicly displays these reviews 14 days after submission.

Additionally, Vrbo has a satisfaction rating system where guests and hosts can rate each other. However, this rental platform doesn’t publicly display traveler ratings. Hosts can only see these when communicating with the guests. Vrbo also awards the “premier host” rating to hosts who offer quality stays and guest services, increasing their visibility among guests on the website.

What about Airbnb’s review system? Guests and hosts usually have a 14-day window to drop their reviews, and they’re only publicly published after an additional 14-day period.

Airbnb also has a satisfaction rating, allowing guests and hosts to rate their experiences. However, while Vrbo offers an overall satisfaction rating system, Airbnb guests can rate their satisfaction based on specific aspects of their experience, such as the host’s check-in process, cleanliness, communication, location, and amenities.

Airbnb also rewards hosts with well-maintained stays and quality guest experiences with a coveted “super host” status, similar to Vrbo's “premier host” status, which enhances their visibility on the platform.

Overall Booking Process

Airbnb vs Vrbo booking processes are pretty much the same. These rental platforms serve as the middlemen connecting guests directly with property owners.

To secure a stay on Vrbo or Airbnb, you first need to select a listing and confirm its availability. If available, you choose dates, specify the number of guests, and tap reserve to send your booking request. Subsequently, the host receives a notification, and based on factors like your profile ratings, they can either confirm or decline it.

If approved, your booking is officially confirmed. If denied, you can explore and book other listings. Note hosts on both rental sites typically have up to 24 hours to review reservation requests. Fortunately, most hosts will accept reservation requests within an hour and offer a definitive response within 12 hours.

Need to make an emergency real estate business trip and can’t wait for a host to respond? You’ll be glad that Airbnb and Vrbo offer an instant book feature. When the host activates this feature, guests can make instant reservations. Overall, Vrbo and Airbnb offer straightforward booking processes, ensuring guests a seamless and efficient experience.

Vrbo Vs. Airbnb: Frequently Asked Questions

What are the main differences between Vrbo and Airbnb's booking processes?

The main difference lies in the property types and booking flexibility; Vrbo primarily offers entire homes and has a more straightforward booking process, while Airbnb provides a wider range of properties, including shared spaces, with more flexible booking options.

How do Vrbo and Airbnb handle customer disputes?

Vrbo and Airbnb both offer resolution centers; Vrbo tends to be more hands-off, encouraging direct resolution between guest and host, whereas Airbnb provides more active mediation and assistance in disputes.

Are there any unique accommodation types exclusive to Vrbo or Airbnb?

Airbnb is renowned for its unique accommodations like treehouses, castles, and igloos, while Vrbo focuses more on traditional property types, such as houses and apartments, offering exclusive luxury and premium properties.

What are the options for long-term stays on Vrbo and Airbnb?

Both Vrbo and Airbnb cater to long-term stays; Airbnb has a specific 'monthly stays' category with special pricing, while Vrbo offers many properties that provide discounts for extended stays.

How do Vrbo and Airbnb contribute to sustainable tourism?

Airbnb actively promotes eco-friendly and sustainable properties and has initiatives for carbon neutrality, whereas Vrbo provides information and resources for guests and hosts to engage in sustainable practices.

What are the insurance and liability policies for hosts on Vrbo and Airbnb?

Airbnb provides a Host Guarantee and Host Protection Insurance for liability coverage, whereas Vrbo offers optional insurance plans for hosts, including liability coverage through third-party providers.

Final Thoughts: Is Vrbo Or Airbnb Better?

Airbnb outshines Vrbo with its diverse rental options, usually allowing guests options like private and shared rooms and work-specific accommodations.

The site has many listings, making it possible for guests to find affordable accommodations even in remote destinations.

The platform also offers better safety policies, easy-to-understand cancellation policies, and comprehensive Airbnb property damage protection coverage for hosts. Vrbo, on the other hand, has lower service fees and a better review system.

Which is better, Vrbo or Airbnb? Airbnb is undoubtedly the better option for solo travelers, such as real estate investors, while Vrbo is the best option for larger groups. However, ultimately, we consider Airbnb the better option for its many listings and accommodation options.

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