The short-term rental industry is a goldmine for property owners, and choosing the right platform can make or break your success.
If you’re weighing Booking.com vs Vrbo, you’re asking the right question: which one drives more bookings, higher income, and better guest experiences for your vacation rentals?
At 10XBNB, we’ve mastered rental arbitrage and vacation rental strategies to help hosts like you dominate the market.
This page breaks down the key differences between Booking.com and Vrbo, with a nod to Airbnb, to help you pick the platform that maximizes your profits. Let’s get to it in the latest of Airbnb Business knowledge.
Vacation Rental Platforms: The Big Picture
The vacation rental market is booming, with platforms like Booking.com, Vrbo, and Airbnb competing for hosts and guests.
Each platform has unique strengths, but your choice depends on your property type, target guests, and income goals. Booking.com boasts over 28 million accommodation listings, including 6.2 million rental homes, while Vrbo focuses on whole-home rentals for families and groups. Airbnb, with 7 million listings across 220 countries, offers a mix of shared spaces, private rooms, and entire homes.
Understanding these platforms’ scale and focus is critical for property owners aiming for more bookings.
Booking.com: The Online Travel Agency Powerhouse
Booking.com, part of Booking Holdings, is a titan in the travel industry, with 409.33 million site visits in September 2021. It’s not just about hotels—its 6.2 million vacation rental listings make it a major player for hosts. Booking.com’s strength lies in its massive reach and diverse travel services, including car rentals, flights, and excursions, attracting a broad guest base.
How Booking.com Works for Hosts
Booking.com allows hosts to list vacation rentals, from private rooms to entire homes, with flexible options like instant bookings or guest request reviews. Hosts set their own house rules, cancellation policies, and pricing, but the platform charges a commission-based service fee, typically 15-20% per booking.
Additionally, property managers can charge extra fees for cleaning, although the platform itself does not charge commission to guests. This booking fee can eat into profits, but the platform’s high traffic drives more bookings, especially for unique stays in high-demand locations.
Booking.com Host Income and Features
The average income for Booking.com hosts is around $22,960 per year, reflecting its diverse property types and global reach. However, Booking.com doesn’t offer guest damage protection, so hosts must secure their own insurance or require a security deposit.
Pro Tip: Use high-quality photos and detailed descriptions to stand out in Booking.com’s crowded search results—guests prioritize visuals and clarity.
Cancellation Policies on Booking.com
Booking.com offers flexible cancellation policies, from fully flexible to strict, letting hosts balance guest appeal with booking security.
A full refund option attracts more guests, but a strict cancellation policy protects your income. Hosts can customize these settings to match their risk tolerance, ensuring a win-win for both parties.
Vrbo: The Whole-Home Rental Champion
Vrbo, part of the Expedia Group, is laser-focused on vacation rentals, particularly whole-home rentals for families and groups.
With 36.10 million site visits in September 2021, Vrbo’s traffic is lower than Booking.com’s but highly targeted. Its primary audience includes families with children and friend groups, typically ages 35-55, who seek spacious vacation homes with family-friendly features like multiple bedrooms and pools, making it ideal for specific property types.
How Vrbo Works for Hosts
Vrbo charges hosts a service fee of 5-8% per booking, lower than Booking.com’s, plus a 3% payment processing fee for credit card payments. Hosts can list properties with detailed house rules and require security deposits to cover property damage.
Additionally, Vrbo allows hosts to charge guests a cleaning fee, which must be clearly stated on the listing to ensure transparency. Vrbo’s MarketMaker™ tool provides market data to set competitive vacation rental rates, helping hosts optimize pricing for more bookings.
Vrbo Host Income and Features
Vrbo hosts earn an average of $33,000 per year, higher than Booking.com and Airbnb, due to its focus on entire homes, which command premium rates. This income level is primarily attributed to the platform’s emphasis on renting entire homes, which are particularly appealing to families and groups.
The Premier Host program rewards hosts with a premier host badge for excellent guest reviews and consistent performance, boosting visibility in search results. This is a game-changer for property managers aiming to attract high-value guests.
Cancellation Policies on Vrbo
Vrbo’s cancellation policies range from flexible to strict, with options for full refunds or penalties to deter last-minute cancellations.
Hosts can tailor these to their needs, but Vrbo’s family-oriented guests often prefer flexible terms, especially post-pandemic. A balanced policy ensures more bookings while protecting your income.
Airbnb: The Industry Disruptor
Airbnb, with 74.87 million site visits in September 2021, is a household name for vacation rentals. Its 7 million listings include shared spaces, private rooms, and entire homes, catering to diverse guests.
Airbnb hosts earn an average of $9,600 per year, lower than Vrbo and Booking.com, due to its mix of property types and lower-priced listings. During the pandemic, Airbnb shifted its marketing from shared spaces to entire homes, aligning closer to Vrbo’s model.
Airbnb vs Booking.com vs Vrbo: A Quick Comparison
- Property Types: Booking.com offers hotels, private rooms, and vacation rentals; Vrbo focuses on whole-home rentals; Airbnb spans shared spaces to entire homes.
- Service Fees: Booking.com (15-20%), Vrbo (5-8% + 3% payment fee), Airbnb (3-5% for hosts, plus guest fees).
- Guest Damage Protection: Airbnb offers Host Guarantee; Vrbo allows security deposits; Booking.com requires external insurance.
- Cancellation Policies: All three platforms offer flexible to strict options, customizable by hosts.
- Traffic: Booking.com (409.33M visits), Airbnb (74.87M), Vrbo (36.10M in Sep 2021).
For a deeper look at Airbnb’s hosting strategies, check out our blog post on Maximizing Profits with Airbnb Arbitrage.
Booking.com vs Vrbo: Which Is Better for Hosts?
Choosing between Booking.com and Vrbo depends on your property and goals. Here’s a breakdown to guide your decision.
Booking.com Pros for Hosts
- Massive traffic (409.33M visits) drives more bookings.
- Diverse listings (hotels, private rooms, vacation rentals) attract varied guests.
- Instant booking option speeds up reservations.
- Global reach expands your potential guest pool.
Booking.com Cons (and Opportunities)
- Higher service fees (15-20%) cut into profits. Opportunity: Optimize pricing with dynamic rates to offset fees, a strategy we teach at 10XBNB.
- No guest damage protection. Opportunity: Require security deposits or invest in short-term rental insurance.
- Competitive search results. Opportunity: Use high-quality photos and detailed listings to rank higher.
Vrbo Pros for Hosts
- Lower fees (5-8% + 3%) mean more money in your pocket.
- MarketMaker™ tool optimizes vacation rental rates.
- Premier Host badge boosts visibility for top performers.
- Family-friendly focus attracts high-paying group bookings.
Vrbo Cons (and Opportunities)
- Lower traffic (36.10M visits) than Booking.com. Opportunity: List on multiple channels, including Airbnb, to maximize exposure.
- Whole-home focus limits property types. Opportunity: Target family-friendly rentals to align with Vrbo’s niche.
For tips on setting competitive rates, read our post on Using Market Data to Price Your Vacation Rental.
Is Vrbo Cheaper Than a Hotel?
Vrbo’s whole-home rentals often beat hotel rates for groups. A family of six renting a vacation home for $300/night splits the cost to $50 per person, compared to $100+ per hotel room.
Booking.com’s hotel listings can be cheaper for solo travelers or couples, but Vrbo shines for group stays. Always compare total costs, including cleaning fees and service fees, before booking.
Should You Book Through Vrbo or Directly?
Booking directly with hosts can save on service fees, but Vrbo’s platform offers payment security and guest reviews for trust. For hosts, Vrbo’s structured check-in and check-out processes reduce disputes.
Unless you know the host personally, booking through Vrbo is safer for both guests and owners.
Is Expedia or Vrbo Better for Booking?
Expedia, like Booking.com, is an online travel agency with a broad focus, including hotels and car rentals. Vrbo, under the Expedia Group, specializes in vacation rentals, offering a curated experience for whole-home rentals.
For hosts, Vrbo’s lower fees and MarketMaker™ tool make it a better choice for vacation homes. Guests seeking unique stays prefer Vrbo’s family-oriented listings over Expedia’s generic options.
What’s a Good Alternative to Booking.com?
Vrbo and Airbnb are strong alternatives to Booking.com. Vrbo excels for whole-home rentals, while Airbnb offers flexibility for various property types. Listing on multiple channels maximizes exposure, a strategy we emphasize at 10XBNB.
For niche platforms, consider HomeAway (also Expedia Group) or local booking sites for specific markets.
Rental Arbitrage: A Game-Changer for Hosts
Rental arbitrage—leasing properties to list as short-term rentals—can 10X your income on Booking.com, Vrbo, or Airbnb. By listing on all three platforms, you capture more bookings and diversify revenue.
For example, a leased property in a high-demand location can yield $5,000/month on Vrbo for family bookings, $4,000 on Booking.com for instant bookings, and $3,500 on Airbnb for unique stays.
The key?
Optimize listings with high-quality photos, competitive pricing, and clear house rules. Learn more in our post on Scaling Your Rental Arbitrage Business.
Pro Tip: Master Multiple Platforms
List on Booking.com, Vrbo, and Airbnb to reach different guest segments. Use channel managers like HostTools to sync calendars and avoid double bookings.
Tailor each listing to the platform’s audience—highlight family amenities on Vrbo, unique features on Airbnb, and flexible policies on Booking.com. This approach ensures more bookings and more money.
The Bottom Line: Booking.com vs Vrbo for Your Vacation Rental
Booking.com’s massive traffic and diverse listings make it ideal for hosts with varied properties, despite higher fees. Vrbo’s lower fees, MarketMaker™ tool, and family-friendly focus deliver higher income for whole-home rentals. Airbnb, while versatile, lags in host income but shines for unique stays. VRBO vs Airbnb—compare features, fees, and revenue potential to find out which platform offers better opportunities for maximizing your hosting income.
The real win? Leverage all three platforms to dominate the short-term rental industry. Optimizing your listings according to each platform’s unique audience and algorithms is essential to maximize occupancy rates.
At 10XBNB, we empower hosts to scale their vacation rental businesses with proven arbitrage strategies and platform optimization. Whether you choose Booking.com, Vrbo, or both, our program equips you to maximize bookings, minimize fees, and build wealth. Sign up today to 10X your rental income and own the vacation rental game.
