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Vrbo Service Fee: Commission Structure Change

How Vrbo's new commission structure works, what is changing, and how Hospitable is helping hosts automatically mark up their prices to bridge the gap.

Written by Tahlia Greatbatch

Vrbo has announced changes to its host commission, moving many hosts to a new 12% commission model from 29th October 2026.

The exact rate, structure, and whether payment processing is included or billed separately are set by Vrbo and vary by region, connection type, and commercial agreement - so the only reliable source for your specific fee is your Vrbo dashboard and Vrbo's own documentation and FAQs

ℹ️ Hosts can refer to their Vrbo Dashboard or payout summary for a breakdown of payment details and charges.

Your property's commission structure may not have changed yet, but it will change eventually. For more information about this, please contact Vrbo support directly.


What we know is changing

  • Vrbo is rolling out changes to its host commission, raising it to 12% for all hosts. The exact percentage, structure, and time of change will vary.

  • You need to contact Vrbo directly to find out how and when this will affect you specifically.

  • The change applies to all hosts who are already on a Pay-Per-Booking model on Vrbo, and will apply to all hosts on a Pay-Per-Subscription model after their current annual subscription ends.

  • The change applies to all hosts, whether they use a property management software like Hospitable or not.

  • The 12% commission includes Vrbo's payment processing fee. If you use a third-party payment processor (such as Hospitable or Stripe), Vrbo does not lower their commission amount.

  • If Hospitable is your Merchant of Record for a booking, then there is also a 3.9% (2.7% AU) processing fee.

  • This commission is based on the nightly rate and additional fees the host charges the traveller (i.e. cleaning, pet, boat fees, etc.). Taxes and refundable damage deposits are treated separately from the commission.

  • Vrbo bills its fees directly to the credit card on file with Vrbo - not through your Hospitable payout.

⚠️ To determine the specific fee(s) that apply to your property, please check your Vrbo dashboard.


How Hospitable is helping you prepare

To help prepare hosts and their listings for the upcoming change and prevent potential revenue loss due to the higher commission, Hospitable will automatically increase the markup rate on your Vrbo listings.

  • Raise your Vrbo markup just enough that your payout per night at 12% matches what you get today.

    • For example, a $200 night with a 10% markup at 8% commission pays out $202.40. At 12% commission, the markup moves to 15%, and the payout stays $202.40.

  • The automatic markup will be applied for hosts on both the Vrbo Legacy and Vrbo Partner connections.

  • Nightly-rate markups will be updated automatically unless you opt out. You do not need to complete the markup tool for Hospitable to apply the automatic nightly-rate markup increase to eligible Vrbo listings. This increase is intended to help offset Vrbo’s higher commission.

  • Hosts using the Vrbo Partner connection can choose to include fees (like cleaning fee and pet fee) in the automatic markup.

  • Hosts can opt out of the automatic markup before October 28th, at 23:59 Pacific Time.

  • Choosing to opt out applies to the nightly rate markup as well as the fee markup.

  • Hosts can choose to opt out of the automatic markup at an account or per-property level.

  • Opting out of the automatic markup at the property level will also opt hosts out of the fee markup.

  • Review your Vrbo prices with the markup tool. Compare your current and recommended markup, enter a different percentage, and choose which properties to include in the update.

  • Raise your markup enough to help offset Vrbo’s higher commission. Hospitable recommends a percentage intended to keep your payout per night close to what it is today. Review the recommendation for each property before confirming your choices.

🚨 Note: These changes do not apply to listings on Vrbo's Pay-Per-Subscription model!

Vrbo's commission change will apply to those at the end of their current subscription period.


October 28th, 23:59 Pacific Time deadline

Vrbo starts moving hosts to the new commission structure on the 29th of October. This is according to their latest update, but may still be subject to change.

Not all hosts will be moved to the new structure at the same time, but it is impossible for Hospitable to know which hosts will be moved at what time.

Because of this, Hospitable's markup migration tool has been built with an opt-out deadline of October 28th, at 23:59 Pacific Time.

If you have not opted out before October 28, 2026, at 23:59 Pacific Time, Hospitable will automatically recalculate the nightly-rate markup for eligible Vrbo listings, even if you have not opened or completed the markup tool.

💡 If the migration date moves, the new deadline will be shown in the Migration Interface.


How to use the Vrbo markup tool

Use the Vrbo markup tool in Hospitable to review your recommended markup, choose whether to adjust supported listing fees, and select which properties to include in the automatic update. You can accept the recommendations, enter your own percentages, or opt out.

🚨 The tool supports Vrbo Legacy and Vrbo Partner connections. Listings on Vrbo’s Pay-Per-Subscription model are not included in this automatic update.

1. Accessing the markup tool

You can access the tool in either of these ways:

  • From Hospitable: When you first log in, use the red alert at the top of the screen to open the Vrbo markup tool.

  • From your email: Open the email Hospitable sent you and click the direct link to the markup tool.

On the tool’s introduction page, read Hospitable’s Vrbo Commission Change Migration Terms before confirming your choices or opting out. You can also access these terms from the markup tool and Hospitable’s email about the update. After you have reviewed the information about the commission change and the terms and conditions, then select Review Markup.


To opt out for all properties instead, follow the instructions under Opt out for all properties below.

2. Review your default markup

On Review the recommended Vrbo markup, review the recommended percentage in the markup field. The percentage you choose on this page becomes your default for the update. You can review and customize individual property markups later.

Compare Before and After under Payout breakdown to see how the markup and commission change could affect your payout for a one-night stay.


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To choose a different default, edit the percentage. The After breakdown updates to reflect your entry.

If you change the percentage, you can select Reset to recommended to restore Hospitable’s recommendation.

Select Continue when you have chosen your default markup.

3. Check your Vrbo connection type

Check your Vrbo connection type in Hospitable to find out whether you can include listing fees in the markup update.

1. In Hospitable, go to Channel Connections.

2. Find your Vrbo connection tile and check its name:

- Vrbo Partner Connection: You are using the Vrbo Partner connection.
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- Vrbo, with a Chrome-extension or login-based setup: You are using the Vrbo Legacy connection.

If the tile shows an Upgrade to Vrbo Partner Connection button, you are still using the Vrbo Legacy connection.

4. Choose whether to update listing fees

🚨 Fee updates are available only for listings using the Vrbo Partner connection and are not selected by default. To include supported fees, select Update my listing fees and confirm your choices at the end of the tool. Leaving this option unchecked keeps your existing fees, even if Hospitable updates your nightly-rate markup automatically.

On Review your listing fees, choose whether to adjust supported listing fees alongside your nightly-rate markup.

Leave Update my listing fees unchecked to keep your current fees.

Select the Update my listing fees box to include supported fees in the update. The After breakdown changes to show the effect on the example payout. In the example below, the cleaning fee increases from $50 to $54.

Review the comparison, then select Continue.

5. Review individual properties

On Review properties, check the Host Fee and Markup columns to compare each property’s current and new percentages.

Keep the properties you want included selected. You can edit the new markup percentage for an individual property in its row.

Select the arrow at the right of a property’s row to expand its available payout and fee details.

To exclude a property from the automatic update, untick the checkbox next to its name.

Opting out a property excludes it from both the nightly-rate markup update and any listing-fee update. Confirm your property selections in the final step.

Understand Match default and Match recommended

These options apply different values when they appear beneath a property’s markup field.

Match default sets the property’s markup to the default percentage you chose earlier in step 2. This may be Hospitable’s recommendation or a custom percentage you entered.

Match recommended sets the markup to Hospitable’s recommendation for that specific property. This can differ from your default.

6. Confirm your choices

Once you have reviewed the selected properties, markup percentages, and any listing-fee updates, select Confirm at the bottom right of Review properties.

Hospitable will schedule the selected updates for the included properties. The planned update date is October 29, 2026.

If you do not opt out before October 28, 2026, at 23:59 Pacific Time, Hospitable will automatically recalculate your Vrbo markup. If the update date changes, the revised deadline will appear in the tool.

Opt out for all properties

To exclude all your properties from Hospitable’s automatic update:

  1. On the tool’s introduction page, select Opt out in the bottom-left corner.

  2. In the Opt out for all properties? confirmation window, select Opt out to confirm.

Opting out for all properties prevents Hospitable from scheduling changes to their nightly-rate markups or listing fees. Opting out of Hospitable’s update does not prevent Vrbo from changing its commission.


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 host commission Vrbo charges you under your current agreement - confirm the exact rate in your Vrbo dashboard.

  • Hospitable's 3.9% payment processing fee (2.7% AU) on bookings where Hospitable is your Merchant of Record.

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

For example, a $200 night with a 10% markup at 8% commission pays out $202.40. At 12% commission, the markup moves to 15%, and the payout stays $202.40.


Vrbo commission and Hospitable payment processing

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 (2.7% in Australia) to the booking.

  • Vrbo's commission is separate from Hospitable's payment processing fee.

    • This is billed directly by Vrbo to the card on file in your Vrbo account.

    • For the exact amount and structure, refer to your Vrbo dashboard and Vrbo's documentation.

  • Vrbo will no longer reduce its commission by the payment processing fee amount when you use a different payment processing method

  • After the October 29th change, Vrbo will apply the flat 12% commission to all reservations, no matter who the payment processor is


FAQs

The following are FAQs assembled by Hospitable and based on Vrbo's latest communication. The answers here are subject to changes made by Vrbo to their planned commission structure and rollout.

ℹ️ For the most up-to-date information and FAQs about Vrbo's commission change, please refer to their own documentation here: https://www.expedia.com/newsroom/vrbo-compensation-model-changes/

Who decides what commission rate applies to my listings?

Vrbo determines the commission that applies to your account. Rates and structures vary by region, connection type, and your commercial agreement with Vrbo. Check your Vrbo dashboard and Vrbo's documentation & FAQs, or contact Vrbo Support for a definitive answer.

Does the new pricing model apply to me if I'm on the Vrbo Partner Connection?

Yes. The new pricing model applies to all Vrbo listings, whether they use a property management software or not.

I'm on an annual Vrbo subscription - will I be affected?

Yes, but not yet.

Listings that are on Vrbo's Pay-Per-Subscription model will not be affected by the commission percentage change right away.

However, Vrbo will not be renewing these subscriptions, meaning once they end, the listing will be moved to the Pay-Per-Booking model and charged the new commission amount for each new booking.

For more information about your account and situation, please contact Vrbo support directly.

Will Hospitable adjust my prices for me?

Hospitable will not change your nightly rate automatically, but will increase your Vrbo listings' markup rate to account for the new Vrbo commission amount.

You can opt out of this automatic update if you want to.

Will this change my Airbnb or Booking.com pricing?

No. Channel markups are set per channel. A Vrbo markup change only affects the price pushed to Vrbo.

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

If your commission with Vrbo has increased, you may want to review and increase your markup so your net payout stays close to what it was before. The right percentage depends on what Vrbo is actually charging you - confirm that in your Vrbo dashboard first.

Who decides what commission rate applies to my listings?

Vrbo determines your commission. Rates and structures vary by region, connection type, and commercial agreement, so another host’s current or previous rate may not match yours.

Check your Vrbo dashboard and Vrbo’s booking-fee documentation, or contact Vrbo Support to confirm the commission that applies to your listings.

Does the commission change apply to both Vrbo Partner and Vrbo Legacy connections?

Yes. Vrbo’s commission change applies to hosts using either connection, as well as hosts who do not use property management software.

Using Hospitable to process guest payments does not exempt a listing from Vrbo’s commission change.

Will Hospitable adjust my prices for me?

Yes. Unless you opt out before the deadline, Hospitable will automatically increase the nightly-rate markup for eligible Vrbo listings, even if you do not open or complete the markup tool.

This update is intended to help offset Vrbo’s higher commission. It changes the markup applied to your base nightly rate, not the base nightly rate itself.

Listing fees are not included automatically. For listings using the Vrbo Partner connection, supported fees will change only if you select Update my listing fees in the tool and confirm your choices.

Review each property’s recommended markup and decide whether to include listing fees rather than relying on the automatic update alone.

Does Vrbo’s 12% commission replace Hospitable’s payment processing fee?

No. When Hospitable is the Merchant of Record, meaning Hospitable collects the guest’s payment on your behalf, Hospitable’s payment processing fee remains unchanged and applies in addition to Vrbo’s commission.

Vrbo does not reduce its commission when Hospitable processes the payment.


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