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Airbnb Property Management Blog

Airbnb vs VRBO: Which Platform is Better for Hosts and Travelers

Airbnb and Vrbo, without a doubt, makes it at the top of the list whenever it comes to choosing the best platforms for short-term or long-term rentals. Hosts and Guests both have diverse needs and preferences and Airbnb & Vrbo both seem to cater to all of them. However, there are a few factors that make one of these platforms stand out in the industry. Some might have more listings, while others have lower fees, one might turn out to be better for the hosts, the other one might be good for the travelers. 

To help you make an informed decision, we have done a complete in-depth comparison of the two. Considering the unique choices of both the hosts, and the traveler – we aim to answer everything in this guide, so you don’t get confused while choosing between the two top-dogs in the rental industry!

A Brief History of Airbnb & VRBO

Did you know Airbnb was originally named as Air Bed & Breakfast but later was changed to Airbnb in 2009? It all started when two friends spontaneously welcomed 3 guests into their home. As they were struggling to pay rent, the idea sprang up that why not rent out their empty spaces and make money off of it. Founded by Joe & Brian in 2007, Airbnb has now grown to over 5 million hosts and more than 2 billion guests. 

VRBO on the other hand, is the oldest one in the rental industry. The abbreviation of VRBO stands for Vacation Rental By Owner which means that the properties can be rented by the owners for a short span of time. VRBO was acquired by HomeAway, which expanded its reach globally. Later, in 2015, both VRBO and HomeAway became part of Expedia Group, further integrating VRBO into the mainstream travel ecosystem. Today, VRBO focuses on vacation homes, attracting families and groups looking for private, spacious accommodations for extended stays.

What Makes Airbnb Standout?

Having a vast reach globally, Airbnb has long been the go-to-platform for hosts as well as travelers. What sets airbnb apart is its ability to cater a broader spectrum of travelers. Whether you are low on a budget, or rolling in dough, Airbnb can provide comforting accommodations that make your stay memorable. With over 6 million listings in 100,000 cities world-wide, Airbnb provides amazing stay experiences, including treehouses, yurts, and even castles. The platform is designed with a seamless user interface that makes it easy for guests to book, explore, and filter based on personal preferences.

What is in it for Guests and Hosts?

Feature

For Guests

For Hosts

Accommodation Variety

Wide range including private rooms, entire homes, and unique stays like treehouses.

Hosts can list various types of accommodations, including unique properties.

Search Filters

Advanced filters for price, type of stay, amenities, and more.

Detailed host profiles and ratings for potential guests.

Booking Flexibility

Options for instant booking or request to book, with flexible cancellation policies.

Customizable booking settings, including instant book options.

Experiences

Access to local activities and unique experiences curated by hosts.

Ability to offer local tours, classes, and activities alongside accommodation.

Host Reviews

Comprehensive reviews and ratings to assess the quality of stays.

Opportunity to earn and display positive reviews to attract more guests.

Safety Features

Verified IDs, secure payment processing, and emergency contact options.

Access to host protection programs and insurance coverage.

Smart Pricing

N/A

Automatically adjusts pricing based on demand and market conditions.

Superhost Status

Visibility of high-rated hosts through the Superhost program.

Recognition and benefits for top-performing hosts, such as increased visibility.

Customer Support

24/7 customer support and help center.

Dedicated support and resources for resolving issues and managing listings.

Mobile App Features

User-friendly app with booking management and communication tools.

Tools for managing bookings, responding to guests, and updating listings.

What Sets VRBO Apart?

While Airbnb is the most well-known and renowned, VRBO came into the short-term rental industry way before Airbnb. VRBO sets itself apart by focusing on scenic destination markets, with 63% of its properties located in mountain and coastal areas, compared to only 40% of Airbnb listings. Unlike Airbnb, which is more common in urban areas and caters to solo travelers with shared spaces, VRBO offers only entire-home rentals, making it ideal for larger groups and families. With higher-priced properties, especially in expensive vacation spots, VRBO typically sees higher Average Daily Rates (ADR). Property owners benefit from comprehensive property protection options, offering peace of mind, while guests can earn OneKey Rewards, usable on VRBO, Expedia, and Hotels.com, adding extra value to their stay.

This picture is showing some listed places on VRBO desktop application representing the topic: VRBO Properties

What's in it for Guests and Hosts?

Feature

For Guests

For Hosts

Accommodation Type

Entire-home rentals, ideal for families and groups.

Only entire properties, no shared spaces, attracting larger groups.

Destination Focus

63% of properties are in scenic coastal and mountain areas.

High-demand vacation destinations offer premium rental opportunities.

No Shared Spaces

No shared living spaces, ensuring privacy for all guests.

Hosts target travelers seeking private stays, with higher pricing potential.

Larger Properties

More options for properties with 3+ bedrooms, great for group trips.

Hosts can list larger homes, appealing to families and vacationers.

Higher Average Daily Rate (ADR)

Typically higher ADR due to premium destinations and larger properties.

Hosts can earn more with higher rental rates in top-tier vacation markets.

Property Protection

Guests enjoy secure stays, with hosts providing well-maintained, entire homes.

Comprehensive insurance and property protection options for hosts.

Cancellation Policies

Clear, upfront cancellation policies, often stricter than Airbnb.

Hosts can set firm cancellation policies to secure their revenue.

Rewards Program

Earn OneKey Rewards redeemable on VRBO, Expedia, and Hotels.com.

VRBO’s rewards program attracts repeat guests, boosting occupancy rates.

Search Functionality

Easy-to-use search filters focused on destination, size, and amenities.

Hosts benefit from targeted search tools that help travelers find their properties easily.

Customer Support

24/7 support available for any issues during the stay.

Hosts get dedicated support for property management and guest concerns.

Airbnb Vs VRBO - Differences and Similarities At a Glance:

Feature

Airbnb

VRBO

Key Takeaway

Type of Rentals

Rooms, shared spaces, entire homes, unique stays (e.g., treehouses).

Primarily entire homes (houses, condos, cabins).

Airbnb offers more variety, while VRBO focuses on private, whole-home rentals.

Number of Listings

6 million+ worldwide

2 million+ worldwide

Airbnb has a significantly larger pool of listings.

Target Audience

Urban travelers, solo travelers, shared space seekers.

Families, groups, more affluent travelers.

Airbnb attracts solo travelers and those seeking unique experiences, while Vrbo is family-friendly.

Service Fees (Guests)

14.20%

6-12%

VRBO typically has lower guest service fees.

Host Fees

3% (can be higher based on location and experience options).

5% commission + 3% credit card processing fee.

VRBO’s fees are generally higher for hosts than Airbnb.

Cancellation Policies

Flexible, moderate, strict, and super strict policies for hosts.

Generally strict cancellation policies, less flexibility.

Airbnb offers more flexibility, while VRBO has stricter policies.

Search Filters

Advanced filters like pet-friendly, superhost, and unique stay types.

Solid filters but limited to whole-home rentals, fewer options compared to Airbnb.

Airbnb offers more detailed search filters, making it easier to find niche properties.

Insurance for Hosts

$3 million in host damage protection (Aircover) and $1 million in liability insurance.

$1 million liability insurance for hosts.

Both platforms offer strong protection for hosts, while Airbnb goes one step further with Aircover protection.

Review System

Guests and hosts review each other after a stay, no anonymous reviews.

Guests can leave anonymous reviews, only guests can review hosts.

Airbnb provides a more transparent review system, while VRBO allows for anonymous reviews.

Now that you have a general idea about the differences and similarities of Airbnb vs VRBO, let us delve into each of the category so we have better clarity while choosing either of the platforms:

Accommodation Differences: Airbnb vs VRBO

  • Airbnb offers a diverse range of accommodations, including private rooms, shared spaces, and unique stays like treehouses and tiny homes. 
           
           It is a screenshot from Airbnb application where a filter is applied and specifically room is highlighted just to explain the Airbnb accommodation
  • VRBO focuses primarily on entire home rentals, catering to families and large groups seeking privacy.
 
          It is a screenshot from VRBO application where a filter is applied and specifically room is highlighted just to explain the vrbo accommodation.

 

Pro Tip: If you’re looking for a more affordable or unique experience, Airbnb’s shared spaces and alternative stays offer budget-friendly options. For more privacy or larger spaces, Vrbo’s whole-home rentals are a better fit.

Search Functionality: Airbnb vs VRBO

  • Airbnb provides extensive filtering options with 60 categories, including specific amenities and unique experiences, plus features like ‘Guest Favorites’ and the ability to split stays across different locations. 
  • VRBO offers a straightforward search with filters for whole-home rentals and a rating system that allows filtering by property ratings.

Pro Tip: Use Airbnb’s diverse categories to find unique stays and experiences. For straightforward searches focused on whole-home rentals with reliable ratings, Vrbo’s filtering system is more effective.

Pricing and Most Fees: Airbnb vs VRBO

  • Airbnb charges guests up to 14.2% in service fees and hosts generally pay around 3% in service fees, though this can vary. 
  • VRBO has lower guest service fees, ranging from 6-12%, and a standard host fee of 5% plus a 3% credit card processing fee.

Pro Tip: For lower overall costs, Vrbo’s lower service fees and transparent pricing structure can be more budget-friendly, but keep in mind the additional credit card processing fee for hosts.

this picture is showing Airbnb vs VRBO Fees Comparison in which percentage of guest fees, host fees and processing fees is mentioned.

Selection Criteria: Airbnb vs VRBO

  • Airbnb: Users can select from a wide variety of listings including rooms, shared spaces, and unique stays. The platform emphasizes unique experiences and features extensive filters.
  • VRBO: Focuses on whole-home rentals with fewer options for shared spaces. The platform is geared towards family and group stays with fewer individual accommodations.

Pro Tip: Choose Airbnb for more variety and unique stays, and VRBO for private, whole-home rentals suitable for groups.

This picture is showing a beautiful woody cabin with a mattress which is representing Airbnb Unique Experiences

Booking Process: Airbnb vs VRBO

  • Airbnb: Users can book instantly or request to book, with options for flexible or strict cancellation policies. Payment is made upfront with a variety of payment methods.
  • VRBO: Offers both instant booking and request-to-book options. Payments are processed through a secure system with options for credit card or bank transfers.

Pro Tip: Use Airbnb for its instant booking flexibility and wide range of payment options. Vrbo’s secure payment system and instant booking make it ideal for straightforward transactions.

Cancellation Policies: Airbnb vs VRBO

  • Airbnb: Provides a range of cancellation policies from Flexible to Super Strict. Hosts can choose their preferred policy, affecting refunds and payment retention.
  • VRBO: Offers several cancellation options, including No Refund and varied refund percentages based on how far in advance the guest cancels.

Pro Tip: Consider Airbnb for more varied policy options and Vrbo if you prefer a set structure with potentially higher refund rates for early cancellations.

Long-Stay Discounts: Airbnb vs VRBO

  • Airbnb: Hosts can offer weekly or monthly discounts, with options to customize the discount based on stay length.
  • VRBO: Typically offers discounts for longer stays, with customizable pricing options for extended bookings.

Pro Tip: Look for Airbnb’s flexible discount settings for long stays, or Vrbo’s structured discount options for potentially better deals on extended vacations.

Cleaning Fees: Airbnb vs VRBO

  • Airbnb: Cleaning fees vary by host and are added on top of the nightly rate. They are set by the host and are visible before booking.
  • VRBO: Also charges cleaning fees set by the host, often reflecting the size and type of property.

Pro Tip: Check cleaning fees on both platforms before booking, as they can significantly impact the total cost of your stay.

Safety: Airbnb vs VRBO

  • Airbnb: Provides AirCover with up to $3M in damage protection, and includes a comprehensive review system to enhance safety.
  • VRBO: Offers up to $1M in liability insurance for property owners, with a focus on protecting against guest-related damages.

Pro Tip: For higher damage protection, Airbnb’s AirCover is more robust, while VRBO’s insurance provides solid coverage for liability and property damage.

Cancellation Policies: Airbnb vs Vrbo

  • Airbnb: Offers a variety of policies from Flexible to Super Strict, allowing hosts to choose based on their preferences. This can affect how much a guest is refunded if they cancel and whether the host receives payment.
  • VRBO: Features a range of policies including No Refund and different percentages for cancellations depending on how close the cancellation is to the check-in date. It has a more standardized approach compared to Airbnb’s flexible options.

Pro Tip: For higher damage protection, Airbnb’s AirCover is more robust, while VRBO’s insurance provides solid coverage for liability and property damage.

Aircover for Airbnb Hosts: This picture is just used to enhance the visuals of this blog section. A sofa, table and a beautiful lamp is decorated in a simple looking room just to create an eye catching ambiance.

Winner for Hosts: Airbnb & VRBO

While VRBO offers several advantages for hosts, including higher Average Daily Rates (ADR), less competition, and lower service fees, hosts often choose Airbnb for its benefits like comprehensive damage protection through Aircover and a larger guest base.

In our experience working with hosts, about 90% prefer Airbnb due to the $3 million damage protection, more bookings, and user-friendly platform. While VRBO may attract longer, higher-quality stays from families, especially for whole-home rentals, many hosts opt to list on both platforms to avoid vacancies and maximize occupancy.

Ultimately, hosts who own their homes and cater to family guests with longer stays may find VRBO a better fit, while those seeking consistent bookings should consider utilizing both platforms to ensure their property remains fully booked.

Winner for Guests: Airbnb

Airbnb generally provides a superior experience for guests due to several key factors. First, it offers a wide variety of listings, including unique and diverse accommodations such as shared rooms, treehouses, and boutique properties, catering to different preferences and budgets. 

With over 6 million listings worldwide, Airbnb boasts a larger selection of properties compared to VRBO, increasing the chances of finding the perfect stay. The platform also features flexible search filters, allowing guests to tailor their searches based on specific needs and interests, such as location, property type, and amenities. Additionally, Airbnb enhances the overall travel experience through its “Airbnb Experiences” service, which enables guests to book local tours and activities alongside their accommodation. 

Finally, Airbnb’s efficient review system encourages timely and detailed feedback from both guests and hosts, providing valuable insights and promoting a more transparent booking process.

Final Thought

When choosing between Airbnb and VRBO, it really comes down to your priorities. If you’re a host looking to attract a wide range of guests and enjoy higher visibility, Airbnb’s massive network and diverse listing options make it a top choice. On the flip side, if you’re a host focusing on whole-home rentals and targeting families or larger groups, VRBO’s specialization in entire properties and generally lower fees can be more advantageous.

For guests, if you’re seeking unique, urban experiences or want the flexibility of shared spaces, Airbnb offers a variety of options to fit your style. But if you’re after a private, more exclusive stay, particularly with family or a larger group, VRBO’s focus on entire homes in desirable locations might be the better fit. Ultimately, it’s about matching the platform with what best suits your needs, whether you’re hosting or booking.

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