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Adjust Your Vrbo Pricing to Account for the New 12% Host Commission

Written by Tahlia Greatbatch

Vrbo has notified hosts that it is moving to a 12% host commission, which also includes payment processing fees. If you want to keep your net payout the same after this change, the most reliable lever you have today is a channel markup in Hospitable. This article explains what the change means for your Hospitable account and walks you through adding or updating your Vrbo markup.

For the exact rollout date on your account and any region-specific details, Vrbo's own notifications and their Pay-per-booking fees article are the best places to check.



What's changing

  • Vrbo's host commission is increasing to 12%.

  • The change applies to Vrbo's commission model (pay-per-booking). Hosts on a legacy annual Vrbo subscription are not affected at this time.

  • Vrbo bills the host commission directly to the credit card on file with Vrbo, not through your Hospitable payout.


Why a markup is the right tool

Hospitable lets you push a marked-up rate to each channel without changing the base price you see on your calendar. Marking up your Vrbo rates increases what guests pay on Vrbo, which offsets the higher commission Vrbo charges you - so your take-home per booking stays close to what it was before.

You can learn more about markups in general here: Markup rates on Hospitable


How to add or update your Vrbo markup

  1. In Hospitable, go to Properties → select a property → Pricing.

  2. Open the Channel markups section.

  3. Set the Vrbo markup to the percentage you want to apply.

  4. Save your changes. The new rate will push to Vrbo on the next sync.

💡 If you manage many properties, you can apply markups at the account level in Settings → Pricing and only override at the property level where you need something different.


A quick note on how Vrbo bookings are processed

When Hospitable is the Merchant of Record for your Vrbo bookings, we collect the guest payment on your behalf and apply our standard 3.9% payment processing fee to the booking. This isn't a new or Vrbo-specific charge — it's the same processing fee that applies to any booking Hospitable processes, and it covers card processing, chargeback protection, and tax facilitation where available. We're flagging it here only so you can factor it into the markup you choose; Vrbo's 12% host commission is separate and billed by Vrbo directly to the card on file in your Vrbo account.


How to choose your markup percentage

A markup is applied on top of your base nightly rate. To decide what percentage to use, consider:

  • The 12% host commission Vrbo now charges you (billed by Vrbo).

  • Hospitable's 3.9% payment processing fee on bookings where Hospitable is your Merchant of Record (unchanged - this is our standard rate across channels).

  • Any plan-level Hospitable commission that applies to your account.

  • Taxes and other guest-side fees aren't part of the markup calculation - the markup only applies to your nightly rate.

As a starting point, many hosts set a Vrbo markup roughly equal to the fees they want to recover. For example, a 12% markup on a $200 nightly rate adds $24, bringing the guest-facing nightly rate on Vrbo to $224. If you also want to recover the 3.9% payment processing fee, you can size the markup accordingly.

⚠️ A markup is a strategy, not a guarantee. Vrbo also charges guests a guest service fee, which affects how competitive your listing feels to travelers. We recommend reviewing your conversion and booking pace after making a change.


Things to know

  • Markups push to Vrbo automatically after you save. There is no need to force a sync.

  • Markups are per channel - your Airbnb, Booking.com, and direct booking rates are not changed.

  • Promotions and length-of-stay discounts are applied to the marked-up rate, so the absolute discount amount is slightly larger than the same percentage applied to your base rate. This is expected.

  • Your reservation financials in Hospitable continue to show the Vrbo commission that Hospitable has on file. If that doesn't match what Vrbo actually charges you, update your Vrbo commission agreement in Hospitable so your Owner Statement and reservation financials reflect reality. You can learn more here: Vrbo Partner Fees & Commissions


FAQs

Does the 12% apply to me if I'm on the Vrbo Partner Connection?

Yes, the Vrbo partner connection applies to Vrbo Partner Connection hosts as well. If you are using Vrbo Partner Connection, we recommend reviewing your Vrbo channel markup in Hospitable, so your net payout remains the same under the new commission rate.

I'm on an annual Vrbo subscription - am I affected?

No. Legacy annual Vrbo subscriptions are not changing as part of this announcement.

Will Hospitable adjust my prices for me?

No. The markup is a setting you control. You decide the percentage, and Hospitable pushes the marked-up rate to Vrbo.

Will this change my Airbnb or Booking.com pricing?

No. Channel markups are set per channel. A Vrbo markup only affects what pushes to Vrbo.

I already have a Vrbo markup - do I need to change it?

If your existing markup was sized for the old commission (around 5–8%), you may want to review and increase it so your net payout stays the same under the new 12% commission.

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