When you connect your listings through the Vrbo Partner integration, guest payment processing is no longer handled by Vrbo. Instead, payments are processed by your selected Merchant of Record: Hospitable or Stripe.
Your commercial agreement with Vrbo, including whether you are on a Pay-per-booking (PPB) or Annual Subscription (PPS) model, remains a separate agreement between you and Vrbo.
The type of connection you use with Hospitable (such as the previous Vrbo Legacy connection or the Vrbo Partner integration) does not determine your commercial agreement with Vrbo.
This article explains the fees that apply to Vrbo Partner reservations, how Vrbo bills commissions or subscription fees, and how Hospitable and Stripe payment processing differ.
At a Glance
For Vrbo Partner reservations:
Vrbo continues to charge hosts according to their commercial agreement with Vrbo (Pay-per-booking or Annual Subscription)
Guest payments are processed by Hospitable or Stripe
Vrbo is no longer the Merchant of Record for PMS-connected listings
Vrbo bills commissions or subscription fees separately from reservation payouts
A valid payment method must remain on file in your Vrbo account for Vrbo billing
Guests may also pay a separate Vrbo traveler service fee
A screenshot showing a Vrbo Partner reservation with commission and payment processing fees displayed
Fee Types for Vrbo Partner Reservations
Vrbo Partner reservations may include fees from multiple sources.
The most common fee categories are:
Vrbo fees (commission or Annual Subscription)
Payment processing fees
Vrbo traveler service fees
The fees that apply depend on your payment processing setup and your commercial agreement with Vrbo.
Vrbo Fees
Vrbo continues to charge hosts according to the commercial agreement on their Vrbo account.
Depending on your agreement, this may be:
A Pay-per-booking (PPB) commission
An Annual Subscription (PPS)
Vrbo charges these fees directly. They are:
Managed by Vrbo
Billed separately from reservation payouts
Not deducted from your Hospitable payout
Hospitable does not determine or collect Vrbo commission or subscription fees.
Billing Requirements
Vrbo requires a valid payment method on file to bill commissions or subscription fees.
Vrbo billing:
Appears on Vrbo invoices
Is managed directly by Vrbo
Is separate from reservation payouts
If you manage listings on behalf of property owners, ensure there is a process for handling Vrbo invoices.
How Vrbo Bills Fees
Vrbo issues invoices monthly rather than charging fees when a guest makes a payment.
According to Vrbo:
Invoices are typically generated during the first week of each month.
Invoice amounts are automatically charged to the payment method on file in your Vrbo account.
Vrbo monthly commission invoice showing pay-per-booking charges
When Charges Appear
Charges do not always appear immediately after a reservation is booked.
Depending on Vrbo's billing cycle, charges may appear on a later monthly invoice.
Examples include:
Reservations that completed during a previous billing period
Cancelled reservations that still resulted in a commission or cancellation-related fee
Other reservation adjustments processed by Vrbo
Vrbo determines when charges appear on invoices. If you have questions about a specific invoice or charge, contact Vrbo Support.
Reviewing Commission Charges
Vrbo invoices are managed directly by Vrbo.
If you have questions about:
Commission calculations
Annual subscription billing
Cancellation-related fees
Invoice timing
Charges appearing on a specific invoice
Contact Vrbo Support directly, as Hospitable does not generate or control Vrbo invoices.
Payment Processing Options
For PMS-connected listings, guest payments are processed through either:
Hospitable
Stripe
The fees and responsibilities associated with each option differ.
Fee Comparison
Fee Type | Hospitable as Merchant of Record | Stripe as Merchant of Record |
Vrbo fees | Based on your commercial agreement with Vrbo | Based on your commercial agreement with Vrbo |
Payment processing | 3.9% | Stripe processing fees |
Additional Hospitable fee | Included | 1% service fee |
Note: Hosts on the Pay-per-booking (PPB) model typically pay a 5% commission to Vrbo. If you're on an Annual Subscription (PPS), Vrbo continues billing you under your existing subscription agreement instead. See Subscription Plans below.
Stripe processing fees vary by country, payment method, and account configuration. Refer to Stripe's pricing for the rates that apply to your account.
Understanding the Costs
If You Use Hospitable as Merchant of Record
For each reservation:
Vrbo charges fees according to your commercial agreement with Vrbo.
Hosts on the Pay-per-booking (PPB) model pay a commission per booking — refer to your Vrbo Owner Dashboard or Vrbo's guidance for the rate that applies to your account.
Hosts on an Annual Subscription (PPS) continue under their existing subscription agreement.
Hospitable deducts a 3.9% payment processing fee, calculated on all amounts Hospitable collects, including accommodation, applicable fees, and taxes.
The 3.9% fee includes:
Payment processing
Chargeback management
Chargeback loss protection
Tax collection and remittance support where available
How the 3.9% Is Calculated
The 3.9% fee is applied to the total amount Hospitable processes for the booking, accommodation, any fees Hospitable collects (such as cleaning fees), and all taxes (whether pass-through or remitted). The Vrbo traveler service fee shown in guest financials is collected by Vrbo, not Hospitable, and is not included in this base.
Example calculation:
Accommodation: $700.00
+ Cleaning fee: $100.00
+ Taxes (pass-through and remitted): $80.00
= Fee base: $880.00
× 3.9% = Hospitable service fee: $34.32
The Vrbo traveler service fee is collected by Vrbo, not Hospitable, and is not included in the base.
If You Use Stripe as Merchant of Record
For each reservation:
Vrbo charges fees according to your commercial agreement with Vrbo.
Hosts on the Pay-per-booking (PPB) model pay a commission per booking — refer to your Vrbo Owner Dashboard or Vrbo's guidance for the rate that applies to your account.
Hosts on an Annual Subscription (PPS) continue under their existing subscription agreement.
Stripe deducts its payment processing fees.
Hospitable charges a 1% service fee.
Stripe fees vary by account and region. The total cost of using Stripe may differ from the cost of using Hospitable as Merchant of Record.
Vrbo Traveler Service Fees
In addition to fees charged to hosts, Vrbo may charge guests a traveler service fee when they make a reservation.
This fee:
Is charged by Vrbo
Is paid by the guest
Is separate from host commissions and payment processing fees
Does not appear in your payout
Guests may see separate charges related to the same reservation:
A charge from Hospitable for the reservation amount
A charge from Vrbo for the traveler service fee
Hospitable does not determine, collect, or control Vrbo traveler service fees.
Questions about traveler service fees, including how they are calculated, must be directed to Vrbo Support.
What's Included in Hospitable's Processing Fee?
When Hospitable acts as the Merchant of Record, the processing fee includes services beyond payment collection.
These include:
Payment processing
Chargeback management
Chargeback loss protection
Tax collection and remittance support where available
These services are managed through a single payment workflow.
Subscription Plans
Vrbo bills hosts using one of two commercial agreements:
Pay-per-booking (PPB) – Vrbo charges a commission on each eligible reservation.
Annual Subscription (PPS) – Vrbo charges a flat annual subscription fee instead of a per-booking commission.
"Vrbo Legacy connection" and "Vrbo Annual Subscription (PPS)" are two different things. The Vrbo Legacy connection refers to Hospitable's previous Chrome extension integration. An Annual Subscription (PPS) is a commercial agreement between you and Vrbo. You can have one without the other. Connecting through the Vrbo Partner integration does not change your Vrbo subscription agreement.
If You Are on an Annual Subscription (PPS)
If you have an existing Vrbo Annual Subscription (PPS), your billing arrangement with Vrbo continues under that subscription agreement. The Pay-per-booking (PPB) commission described elsewhere in this article does not apply while your Annual Subscription remains active.
Connecting through the Vrbo Partner integration does not change your commercial agreement with Vrbo. This is true whether you previously used Hospitable's Vrbo Legacy connection or are connecting directly through the Vrbo Partner integration.
The main change is how guest payments are processed, not how Vrbo bills you.
With an Annual Subscription (PPS):
You continue paying the flat annual subscription fee under the terms agreed with Vrbo.
Vrbo continues billing your subscription fee directly.
Guest payments are processed by your selected Merchant of Record (Hospitable or Stripe) instead of Vrbo.
Payment processing fees are charged by your selected Merchant of Record.
If your Annual Subscription previously included payment processing handled by Vrbo, that payment processing no longer applies because Vrbo no longer processes guest payments for PMS-connected listings.
Your Vrbo subscription fee and your payment processing fees are separate charges that serve different purposes.
Annual Subscription Availability
Vrbo has indicated that Annual Subscription plans are not expected to be renewed going forward. Existing subscriptions may continue where supported by Vrbo.
If you have questions about your subscription status, renewal, or billing, contact Vrbo Support directly. Hospitable does not manage or control Vrbo subscription agreements.
Responsibility Comparison
Responsibility | Hospitable as Merchant of Record | Stripe as Merchant of Record |
Payment processing | Hospitable | Host |
Chargeback handling | Hospitable | Host |
Chargeback liability | Hospitable | Host |
Tax compliance | Supported where available | Host |
When using Stripe as your Merchant of Record, you are responsible for chargeback management, chargeback losses, and tax compliance obligations
Frequently Asked Questions
Can I keep Vrbo as the Merchant of Record?
No. Vrbo does not provide Merchant of Record services for PMS-connected listings.
You can choose:
Hospitable as Merchant of Record
Stripe as Merchant of Record
Why is there a payment processing fee in addition to my Vrbo fees?
Vrbo fees and payment processing fees serve different purposes.
Vrbo charges hosts according to their commercial agreement with Vrbo, while Hospitable or Stripe charges for processing guest payments.
Does Vrbo still charge its own payment processing fee?
No. Vrbo does not process payments for PMS-connected listings.
Payment processing is handled by Hospitable or Stripe, depending on your setup.
Does upgrading from the Vrbo Legacy connection change my Vrbo subscription or commission agreement?
No. Your Hospitable connection type and your commercial agreement with Vrbo are separate.
Whether you use the Vrbo Legacy connection or the Vrbo Partner integration, your commission or annual subscription agreement with Vrbo remains unchanged unless Vrbo changes that agreement directly.
I'm on an Annual Subscription (PPS). Will I start paying the Pay-per-booking commission?
No. If you are on an Annual Subscription (PPS), connecting through the Vrbo Partner integration does not move you to the Pay-per-booking model. You continue under the commercial agreement you have with Vrbo.
The only change is that guest payments are processed by Hospitable or Stripe instead of Vrbo.
Why was I charged after a reservation was cancelled?
Vrbo invoices commissions, subscription fees, and certain reservation-related charges through monthly billing rather than deducting them from reservation payouts.
As a result, charges related to a cancelled reservation may appear on a future Vrbo invoice.
If you have questions about a specific invoice or charge, contact Vrbo Support directly.
What happens if the credit card on my Vrbo account expires?
Vrbo requires a valid credit card for commission billing. Update your payment method directly in your Vrbo account to avoid billing issues.
How are refunds handled when using Stripe?
If you use Stripe as your Merchant of Record, refunds are processed through your Stripe account.
If a refund is issued after you've already received a payout, Stripe may recover the refunded amount from your available Stripe balance or future payouts.
Why am I responsible for taxes and chargebacks when using Stripe?
When you choose Stripe as your Merchant of Record, you are responsible for:
Tax compliance and remittance
Managing disputes
Chargeback losses
Hospitable's tax compliance support and chargeback protection apply only when Hospitable is the Merchant of Record.