The short-term rental industry is a goldmine for property owners, and choosing the right platform can make or break your success.
In this article, we’ll cover a few topics related to platform differentiation, booking strategies, and marketing tips for hosts to help you make an informed decision.
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 largely on your property type, target guests, and income goals. Booking.com boasts over 28 million accommodation listings, including 6.2 million rental homes, and is especially strong for hotel like properties, 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, which provides better visibility for hosts.
Features like Instant Bookings and guest request reviews offer the benefit of streamlining the booking process and increasing the likelihood of securing reservations for hosts.
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. The guest pays the service fee, and after a booking is completed, the host is paid by Booking.com according to their payout schedule.
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. For new hosts, the payout for your first booking is typically released about 30 days after the guest pays, provided the booking occurs within your first 30 days on the platform. 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. Keeping your calendar consistently booked is key to maximizing your rental income.
Cancellation Policies on Booking.com
Booking.com offers flexible cancellation policies, from fully flexible to strict, letting hosts balance guest appeal with booking security. Guests can cancel bookings within specific time frames, and depending on the policy selected, they may receive a full refund or incur penalties.
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. The owner plays a key role on Vrbo, setting fees, managing bookings, and handling the financial and regulatory responsibilities of property ownership.
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. Vrbo has 2 million listings in 190 countries around the world, further solidifying its global presence in the vacation rental market.
Vrbo also provides more options for owners to customize their listings and privacy settings.
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. The unique value a host brings—such as personalized amenities, attentive property management, and direct engagement—can help attract and retain guests on Vrbo. 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. Additionally, Vrbo offers up to $1 million in liability protection for hosts, providing peace of mind and financial security.
For some hosts, Vrbo may be the second choice after Airbnb or Booking.com, depending on property type and overall strategy.
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. The platform offers five levels of cancellation policies: No Refund, Strict, Firm, Moderate, and Relaxed, giving hosts the flexibility to choose what works best for their business model.
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.
Property management tools can help hosts save hours each week by automating reservations and calendar management, making it easier to handle multiple listings efficiently.
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. Airbnb provides cancellation policies including Flexible, Moderate, Strict, Long-Term, Super Strict 30 Days, and Super Strict 60 Days.
- Traffic: Booking.com (409.33M visits), Airbnb (74.87M), Vrbo (36.10M in Sep 2021).
Experienced hosts often share tips on choosing the right platform, optimizing listings, and managing bookings effectively across these platforms.
For a deeper look at Airbnb’s hosting strategies, check out our blog post on Maximizing Profits with Airbnb Arbitrage.
Direct Booking and Management: Beyond the Big Platforms
Direct booking gives vacation rental hosts more control over their properties and income by cutting out third-party service fees and building direct relationships with guests. By managing bookings independently, hosts can tailor the guest experience, set their own rental strategy, and keep more of their earnings. Direct bookings also allow hosts to start collecting guest emails for marketing purposes, encouraging repeat stays and building a loyal customer base.
To manage direct bookings efficiently and avoid double bookings, hosts should use channel management software that synchronizes calendars across all platforms. This technology ensures that your property’s availability is always up-to-date, reducing the risk of double bookings and guest dissatisfaction. Additionally, hosts can implement their own payment systems, set custom cancellation policies, and communicate directly with guests to clarify house rules and expectations.
Marketing your vacation rental for direct bookings involves strategies like building a professional website, optimizing for SEO, and promoting your property on social media. By taking charge of your own marketing and guest communication, you can attract more potential guests, increase bookings, and develop a rental strategy that maximizes your property’s potential—all while avoiding extra fees and gaining more control over your vacation rental business.
Multi-Channel Distribution and Marketing Strategies
In today’s competitive short term rental world, listing your vacation rental on multiple platforms—such as Airbnb, Booking.com, and Vrbo—is a game changer for increasing visibility and securing more bookings. Multi-channel distribution ensures your property reaches a wider audience of potential guests, maximizing occupancy and revenue. However, managing listings across multiple platforms can be complex, especially when it comes to keeping calendars synchronized and avoiding double bookings.
Channel management software is essential for hosts who want to streamline operations and maintain accurate availability across all platforms. This technology automatically updates your listings, helping you avoid double bookings and ensuring a smooth guest experience. In addition to using multiple channels, effective marketing strategies like SEO, pay-per-click advertising, and social media promotion can further boost your property’s visibility and attract more bookings.
Building an email list of past and potential guests allows you to market directly, encourage repeat stays, and reduce reliance on third-party platforms. By combining multi-channel distribution with smart marketing tactics, hosts can develop a winning rental strategy that drives more bookings, increases revenue, and strengthens their position in the short term rental industry.
Reviews and Ratings: Building Trust Across Platforms
Guest reviews are the lifeblood of success in the short term rental industry. Positive reviews and high ratings not only build trust with potential guests but also improve your property’s visibility on platforms like Airbnb, Booking.com, and Vrbo. Earning a premier host badge or similar recognition can further boost your credibility and help you stand out in a crowded market.
To encourage more guest reviews, focus on delivering exceptional service, clear communication, and a memorable rental experience. Promptly responding to guest inquiries and addressing any issues during their stay can turn a good review into a great one. Hosts should also use review management tools to monitor feedback, respond professionally to both positive and negative reviews, and demonstrate a commitment to guest satisfaction.
By consistently collecting and leveraging guest reviews, hosts can increase bookings, enhance their reputation, and build long-term success in the short term rental world. A strong track record of positive reviews signals to potential guests that your property is trustworthy, well-managed, and worth booking.
Understanding Target Audience and Property Types
Knowing your target audience and matching your property type to their needs is key to attracting more bookings and earning more money from your vacation rental. Start by analyzing data and guest feedback to identify who your ideal guests are—families, business travelers, couples, or groups—and tailor your listings to highlight features that appeal to them. For example, if your property is perfect for families, showcase amenities like cribs, high chairs, and kid-friendly entertainment.
Location also plays a big role in attracting potential guests. If your vacation rental is near popular attractions, public transportation, or business districts, make sure to emphasize these benefits in your listing. Use high-quality photos and detailed descriptions to showcase your property’s unique features and set clear expectations for guests.
By understanding your target audience and optimizing your property’s presentation, you can create listings that resonate with potential guests, drive more bookings, and ultimately make more money from your vacation rental. Tailoring your approach to your audience is a proven strategy for standing out in the competitive short term rental industry.
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.
Understanding these differences will help you determine the best path forward for your rental business.
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.
Amenities like free wi fi access can also make vacation rentals more attractive than hotels for many guests.
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. Host Tools integrates directly with Airbnb, VRBO, and Booking.com, making it easier to manage multiple listings efficiently.
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.
