Vrbo's 12% Commission: What It Costs You and How Direct Bookings Offset It

From October 29, 2026, Vrbo charges hosts on its Pay-Per-Booking (PPB) model a 12% commission on the nightly rate plus the fees you charge the traveler, such as cleaning and pet fees. Expedia Group says the 12% includes payment processing (Expedia Group Newsroom). Raising your Vrbo rates by 12% does not cover it; OwnerRez calculates that you need about a 13.64% increase to keep the same payout (OwnerRez). Every booking you move to your own site avoids that commission, which is why the change makes a direct channel worth a fresh look.

Independent publication. Direct Booking Academy is not affiliated with, endorsed by, or an official resource of Vrbo, Expedia Group, Lodgify or Hospitable. Facts below come from the sources listed, as accessed on October 22, 23, 25 and 29, 2026. Vrbo can change its terms, so check your own Vrbo dashboard.

What exactly is changing on Vrbo?

Vrbo is retiring its annual Pay-Per-Subscription model and moving hosts to Pay-Per-Booking, with a 12% commission. Expedia Group's announcement says: "Under Vrbo's Pay-Per-Booking (PPB) model, Vrbo hosts will incur a flat 12% commission fee on bookings, which includes payment processing fees" (Expedia Group Newsroom).

• Previous PPB rate: Hostaway reports the North American PPB rate was 5% (Hostaway). Skift reports 5% for managers connected through software and 8% for other hosts (Skift).
• Regional range: As of Expedia's Oct 22 announcement, "Commission fees may vary regionally and across Vrbo's global heritage brands, ranging from 12-15%" (Expedia Group Newsroom). That newsroom page returned HTTP 429 on Oct 29, so the 12-15% line is not re-verified. Vrbo Help says: "In some regions, including parts of Europe, Australia, and New Zealand, if you utilize Vrbo's Professional Plan, your commission rates may range up to 15% and include payment processing fees" (Vrbo Help).
• No automatic rate bump: As of Expedia's Oct 22 announcement, Vrbo said it "will not apply a one-time base rate adjustment to specifically account for the new commission rates." That newsroom page returned HTTP 429 on Oct 29, so this line is not re-verified. Any price change is up to you.

When does the 12% commission start?

Changes begin on October 29, 2026, and the new rate applies by booking date, not stay date (Expedia Group Newsroom). A booking made on October 29 for a stay next summer pays 12%. OwnerRez says Vrbo "will charge a flat 12% commission on new bookings made on or after October 29, 2026" (OwnerRez).

If you're on a Vrbo subscription, Hostaway says: "If you are on a subscription plan, you will move to Pay-Per-Booking (PPB) with the new 12% commission when your current subscription expires" (Hostaway). OwnerRez says "your existing subscription will continue through its expiration date before moving to the new PPB pricing," and that "Vrbo is communicating directly with hosts about how and when their individual accounts will be affected" (OwnerRez). OwnerRez also says "No new listings can be added under the subscription model."

Is the new Vrbo fee live?

Yes. Vrbo's Host Terms of Service show "Effective From: 29 October 2026" (Vrbo Host Terms), and Vrbo's help center now says "a 12% commission rate is charged on the rental amount and any additional fees you charge to the traveler (such as cleaning, pet, and boat fees)" (Vrbo Help).

Vrbo's help page itself doesn't give a start date. Hostaway says "Starting October 29, 2026, Vrbo will deduct a 12% commission from each booking" (Hostaway). That sentence does not say whether the 12% follows the booking date or the stay date. Vrbo Help says: "In some regions, including parts of Europe, Australia, and New Zealand, if you utilize Vrbo's Professional Plan, your commission rates may range up to 15% and include payment processing fees. Refer to your Vrbo Owner Dashboard for the exact commission rate that applies to your listings" (Vrbo Help).

Hostaway says "Your Vrbo pricing and fee settings in Hostaway do not update automatically." That covers only Hostaway's Vrbo settings, not dynamic-pricing tools. Hostaway says the Vrbo Host Channel Fee field "is used for financial calculations and reporting only" and "does not change the price guests see on Vrbo." If you haven't yet, update that Hostaway field yourself (Hostaway).

Updated Oct 25: who keeps a Vrbo subscription

Almost no one. Vrbo says most hosts still on an annual subscription will move to pay-per-booking, and only a very small number of listings were allowed to keep the subscription.

Vrbo's help center says partners "can no longer opt in to the pay-per-subscription (PPS) model" and that "starting October 2026, most legacy partners still on the PPS model will be switched to the pay-per-booking (PPB) model" (Vrbo Help). It also says the subscription model "is no longer available for new partners" (Vrbo Help).

In a statement to Skift on October 19, Vrbo said: "A very small number of listings that met multiple criteria were grandfathered into the retired subscription model." Vrbo added that partners can't add new listings to the subscription model, "regardless of their current model" (Skift). Vrbo has not published the criteria, and Skift reports it did not say how many listings qualify.

The Vrbo Host Terms, effective October 29, 2026, say "Vrbo is not accepting new Subscription Listings and may not allow the renewal of prior Subscription Listings" (Section 4.7.1). They also say "Conversion of a Listing from a Subscription Listing to a Pay-Per-Booking Listing is only possible at the end of the subscription term for each Subscription Listing. Conversion from Pay-per-Booking Listing to Subscription Listing is not allowed" (Section 4.6.6) and "Subscription Listings may renew automatically and continuously for the same duration as the Initial Listing Term" (Section 4.7.4), and they contain no grandfathering language (Vrbo Host Terms). A subscription renewal is not guaranteed.

What this means for you:

• If you're on a subscription, plan for pay-per-booking at the end of your term unless Vrbo has told you otherwise. Your Vrbo Owner Dashboard (Property > Listing status > Review plan) shows your current plan (Vrbo Help).
• If you're adding a listing, it can't go on a subscription.
• If you think you qualify, ask Vrbo directly. We haven't found any published criteria.

What is the 12% charged on?

The commission is charged on rent plus the fees you charge the guest. In Expedia Group's words: "Commission is based on the nightly rate and additional fees the host charges the traveler (i.e. cleaning, pet, and boat fees)." Taxes and refundable damage deposits are treated separately (Expedia Group Newsroom). Vrbo's help center also excludes the traveler service fee and insurance products (Vrbo Help: PPB).

Vrbo host costs at a glance

The table below lists each cost, who pays it, the rate and the source. We'll keep it updated as terms change.

Fee	Who pays	Rate	Applies to	Source
Vrbo PPB commission (most regions)	Host	12%	Nightly rate + host-charged fees (cleaning, pet, boat)	Expedia Group Newsroom
Vrbo commission (Professional Plan in parts of Europe, Australia and New Zealand)	Host	Up to 15%, including payment processing	Rental amount and host-charged fees	Vrbo Help
Payment processing (Vrbo collects payment)	Host	Included in the 12%	n/a	Expedia Group Newsroom; Vrbo Help
Payment processing (your own processor)	Host	Your processor's rate, on top	Varies by processor	Vrbo Help
VAT/GST on the commission (where applicable)	Host	Vrbo says GST is always 0.5% in Australia, always 0.75% in New Zealand, and not applied in Japan	Commission	Vrbo Help
Traveler service fee	Guest	Not stated	Not part of the host commission	Vrbo Help; OwnerRez
Taxes, refundable damage deposits	n/a	No commission	Handled separately	Expedia Group Newsroom
Previous PPB rate (for comparison)	Host	5% (software-connected) / 8% (other), per Skift; 5% North America, per Hostaway	Before Oct 29, 2026	Skift; Hostaway

Vrbo Help states those GST figures in its own words: "Australia: GST is calculated at 10% on the commission rate and is always 0.5%," "New Zealand: GST is calculated at 15% on the commission rate and is always 0.75%," and "Japan: No GST is applied." Vrbo also says: "If your business is GST-registered and you entered a valid GST ID in the Owner Dashboard, GST isn't charged on Vrbo's commission" (Vrbo Help).

Rates can also differ by connection and agreement, so Hospitable advises checking your own dashboard (Hospitable Help).

What does Vrbo charge if I cancel a guest's booking?

Since October 15, 2026, Vrbo charges hosts 25%, 50% or 100% of the reservation amount, depending on how close to check-in you cancel, with a $50 minimum and no maximum (Vrbo Host Cancellations Policy). Vrbo hasn't said whether the higher fees apply to bookings made before Oct 15.

When you cancel	Fee
More than 30 days before check-in	25% of the reservation amount
More than 48 hours before check-in, but within 30 days	50%
Within 48 hours of check-in or at or after check-in	100%
Minimum fee	$50 USD, for hosts paid in USD, plus applicable taxes
Maximum fee	None ("There is no maximum fee")

Vrbo applies the percentage to the total reservation amount for all nights, including mandatory fees such as cleaning fees, and adds applicable taxes. (Vrbo Host Cancellations Policy)

Vrbo's notice says "These terms will apply from October 15, 2026." Vrbo also says listings can be "suspended for up to 14 days" after a host cancellation (Vrbo Host Cancellations Policy). Vrbo hasn't said whether Oct 15 refers to the booking date or the cancellation date. If you sync calendars with iCal, a double booking you have to cancel now costs at least $50.

How much does 12% cost on a typical booking?

Multiply your rent plus host fees by 0.12. As a worked example with round numbers (not real booking data): a stay with $1,000 in rent and cleaning fees carries a $120 commission, leaving $880 before taxes, which are handled separately. Run your own totals in our fee calculator.

How much should I raise my Vrbo rates to break even?

About 13.64%, not 12%, according to OwnerRez. The reason is that the commission is taken from the higher price too. To keep a payout of $1,000, you'd need a price of $1,000 ÷ 0.88 ≈ $1,136.36, and the 12% commission on that is about $136.36.

The formula is: new price = old payout ÷ (1 − commission rate). At a 15% regional rate, the divisor is 0.85.

Can Vrbo charge me for a direct booking?

Yes, if the guest first contacted you through Vrbo and books with you directly within 30 days. Section 4.8 of Vrbo's Host Terms calls this an "Off-Platform Booking", and it counts even if the booking is made by phone or email.

Section 4.8.1 of Vrbo's Host Terms, effective October 29, 2026, says: "All bookings completed on or originating from our Service will be deemed attributable to Vrbo and subject to the Commission or Subscription Listing Fees, as applicable. A booking will be regarded as having originated from our Service where Host receives through our Service an inquiry, booking request, or other contact from or on behalf of a Guest about a Listing (each, a "Vrbo Lead"), and then, as a result of and within thirty (30) days of the Vrbo Lead, Host completes a booking for that Listing directly with the Guest or the Guest's representative, including by telephone or email (each, an "Off-Platform Booking")." (Vrbo Host Terms)

Two related rules in the same section:

• A different property counts too. Section 4.8.3 covers placing that guest in a substitute property "within 30 days of that Vrbo Lead ... regardless of whether Host lists the substitute property on our Service."
• Reporting is on you. Section 4.8.5 says "It is the sole responsibility of Host to ensure proper reporting of all Off-Platform Bookings to Vrbo ... unless Host provides reasonable evidence to the contrary."

Vrbo's terms don't say whether this applies to inquiries or bookings from before October 29, and we haven't seen Vrbo say either way.

What this means for you (practical, not legal advice):

• Keep records of where each inquiry started. Note whether a guest first reached you through Vrbo, your website, Google, a past stay or a referral, and the date. If a question comes up, that record is your evidence.
• Don't push Vrbo or Airbnb guests off-platform. Asking guests in platform messages to book or pay elsewhere can break Vrbo's and Airbnb's own rules. Grow direct bookings from guests who found you another way.
• Read your own terms. Your Vrbo dashboard and the Host Terms that apply to your account are what count, and Vrbo can change them.
• Ask an attorney if you're unsure how the clause applies to your business.

Direct bookings that clearly avoid the commission are the ones from guests who found you some other way, such as past guests, your website or Google.

Can I price lower on my own site than on Vrbo?

Probably not under the current terms. Vrbo's Host Terms include a parity requirement: Section 4.5.7 says the content and host ancillaries you give Vrbo must be "at least as complete, accurate, current, detailed, and favorable as the information, content, services, amenities, fees, policies, rules, restrictions, availability, booking conditions, and other materials that you make available through your own websites, applications, booking engines, call centers, social media channels, property management systems, ..." (Vrbo Host Terms). The clause names fees, policies and availability; it doesn't use the words "rates" or "price". Skift reports Vrbo plans to ease this for direct sites (Skift), but that isn't in the written terms. Check the current Host Terms, and talk to an attorney, before you change direct-site pricing.

How do direct bookings offset the 12%?

A booking on your own site doesn't pay a Vrbo commission. You still pay your own costs, such as card processing and your booking software, so compare those with 12% of your typical Vrbo booking. You don't have to replace Vrbo; each booking that moves from Vrbo to your site keeps the commission in your pocket.

Practical places to start:

1. Repeat guests. People who already stayed with you are the easiest direct bookings. Respect platform rules on guest contact and the anti-leakage term above.
2. A direct site that converts. If you use Lodgify or Hospitable, our independent Lodgify and Hospitable guides cover setup and troubleshooting, and the direct bookings hub covers strategy.
3. Your own numbers. Use the fee calculator to see what a booking nets on each channel.
4. Strong photos on your own site. Your website has to look as trustworthy as the Vrbo listing guests compare it with.

Reserve Now, Pay Later is a separate Vrbo host change from this 12% commission. The commission is what you pay on a booking; pay later changes when an eligible guest is charged. Read Vrbo Reserve Now, Pay Later: can hosts opt out if you want both.

Direct Booking Academy's publisher also operates BNB Boost.

If your photos are the weak spot, photo enhancer software like BNB Boost adjusts lighting and color without adding or removing anything in the room.

FAQ

Is the Vrbo commission really 12% everywhere?

No. As of Expedia's Oct 22 announcement, Expedia Group says commission fees may range from 12% to 15% by region and heritage brand (Expedia Group Newsroom). Vrbo Help says: "In some regions, including parts of Europe, Australia, and New Zealand, if you utilize Vrbo's Professional Plan, your commission rates may range up to 15% and include payment processing fees" (Vrbo Help). Check your dashboard.

Does the 12% include payment processing?

Yes, when Vrbo processes the payment (Expedia Group Newsroom). If you use your own processor, you pay that processor's fees as well (Vrbo Help).

Is commission charged on cleaning fees?

Yes. Cleaning, pet and boat fees you charge the traveler are included. Taxes and refundable damage deposits are not (Expedia Group Newsroom).

Does a booking made before October 29 for a 2027 stay pay 12%?

No. The rate applies by booking date, not stay date (Expedia Group Newsroom). OwnerRez says Vrbo will charge a flat 12% commission on new bookings made on or after October 29, 2026 (OwnerRez).

I'm on a Vrbo subscription. When do I switch?

When your current subscription expires. Hostaway says: "If you are on a subscription plan, you will move to Pay-Per-Booking (PPB) with the new 12% commission when your current subscription expires" (Hostaway). OwnerRez says your existing subscription will continue through its expiration date before moving to the new PPB pricing, and that Vrbo is communicating directly with hosts about how and when their individual accounts will be affected (OwnerRez).

Will Vrbo raise my prices to cover it?

No. As of Expedia's Oct 22 announcement, Vrbo said it will not apply a one-time base rate adjustment to specifically account for the new commission rates. The Expedia newsroom page returned HTTP 429 on Oct 29, so this is not re-verified (Expedia Group Newsroom).

What happens to Vrbo annual subscription listings?

Vrbo's help center says most legacy subscription partners will be switched to pay-per-booking starting October 2026 and that partners can no longer opt in to a subscription (Vrbo Help). The Host Terms say Vrbo is not accepting new Subscription Listings and may not allow the renewal of prior Subscription Listings, that conversion from a subscription listing to pay-per-booking is only possible at the end of the subscription term for each Subscription Listing, that conversion from a pay-per-booking listing to a subscription is not allowed, and that subscription listings may renew automatically and continuously for the same duration as the Initial Listing Term; the terms contain no grandfathering language (Vrbo Host Terms). A subscription renewal is not guaranteed. Vrbo told Skift that a very small number of listings meeting multiple criteria were grandfathered into the subscription model; it has not published the criteria (Skift).

Does the guest still pay a Vrbo service fee?

Yes. The traveler service fee is separate from the host commission, and OwnerRez says it "is not going away" (OwnerRez).

When is the commission collected if I take payments myself?

OwnerRez says it is charged to your card on file in the month after checkout (OwnerRez).

Can I offer lower prices on my own direct booking site?

Probably not. Section 4.5.7 of Vrbo's Host Terms, effective October 29, 2026, says what you give Vrbo must be at least as favorable as the fees, policies, availability and booking conditions you offer on other channels, including your own websites (Vrbo Host Terms). Skift reports Vrbo plans to ease this for direct sites, but that is not in the written terms (Skift).

Can Vrbo charge commission on a direct booking?

Yes, if the guest first contacted you through Vrbo. Section 4.8 of Vrbo's Host Terms, effective October 29, 2026, says a booking counts as originating from Vrbo when you get an inquiry or other contact through Vrbo and then, "within thirty (30) days," complete a booking directly with that guest, "including by telephone or email." Section 4.8.3 applies the same rule if you place that guest in a different property within 30 days (Vrbo Host Terms).

What does Vrbo charge hosts to cancel a booking?

From October 15, 2026, Vrbo charges 25% of the reservation amount for host cancellations more than 30 days before check-in, 50% within 30 days, and 100% within 48 hours of check-in or at or after check-in, with a $50 minimum and no maximum (Vrbo). Vrbo hasn't said whether the higher fees apply to bookings made before Oct 15.

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By Ethan Parker, who covers revenue and marketing for Direct Booking Academy. Written with AI assistance and reviewed by a human editor.