Vrbo is letting some hosts keep the subscription model. It won't say which ones.

TL;DR

• Vrbo ends its legacy annual subscription on October 29 and moves most listings to a 12% commission, while a small, undisclosed group keeps the plan and Vrbo has not said why.
• Vrbo's 12% undercuts the host fees at Airbnb, about 15.5%, and Booking.com, about 15%, but Vrbo guest fees of 11% to 14% still apply today.
• Independent hoteliers with apartment-style units on Vrbo can confirm when their plan ends, test each unit against the breakeven, and read the new rate parity terms before they price their own website.

Vrbo ends its legacy annual subscription model on October 29, and most listings on the plan move to a 12% commission when their plans expire, Skift (a travel industry news outlet) reported on October 19. Skift also learned that a small group of listings keeps the subscription, including some users of Escapia (Vrbo's in-house property management system) and some listings that are not on Escapia.

Vrbo told Skift that "a very small number of listings that met multiple criteria" were grandfathered in, and it has not disclosed the criteria or the number. The change arrives as Vrbo adds hotel-style products for professional managers, which HotelScaleUp covered in September.

The $699 plan costs less than the 12% commission above roughly $5,825 to $7,767 in annual bookings

Vrbo's own FAQ says the 12% includes payment processing and applies to the rental amount plus fees such as cleaning and pet fees, with the rate ranging from 12% to 15% by region and brand.

Property manager Ginger Harrelson calculated that the subscription beats the commission above about $5,825 in annual Vrbo bookings, down from about $14,000 under the old 5% commission, according to Skift. Subscribers have historically paid a 3% processing fee on top of the $699, so HotelScaleUp's arithmetic puts the breakeven at about $7,767.

Take a unit booked 150 nights a year at $180 a night, or $27,000 in rent, leaving out cleaning fees (HotelScaleUp's arithmetic):

• At 12%, the commission is $3,240.
• The $699 plan plus 3% processing is $1,509.
• The gap is $1,731 a unit, or $8,655 across five.

Vrbo's 12% host commission undercuts Airbnb and Booking.com, but guest fees remain

Booking.com charges hosts about 15% with no guest fee, and Airbnb's host-only fee is about 15.5%, according to Skift. HotelScaleUp covered Airbnb's fee in September.

Vrbo's guest fees run 11% to 14% today, and a vacation rental expert told Skift the company plans to cut them sharply, although Vrbo's own FAQ says most travelers will still see a service fee. The guest's total price, which Vrbo has not published, will likely decide how the three compare.

Renewals are already failing for some hosts, so a subscription cannot be assumed

Skift reports that some hosts said they could not buy subscriptions before the deadline, and one host's $19,500 renewal for 28 listings failed and the listings were suspended. Vrbo Partner Support told that host purchases have been halted.

Independent hoteliers with Vrbo units should price the switch to 12% before October 29

• Confirm your plan's end date in writing. Most subscription listings move to 12% when the plan expires, so that date sets when your cost changes, and an unconfirmed exemption should stay out of your budget.
• Test each unit against the breakeven. Units with more than roughly $5,825 to $7,767 in annual Vrbo bookings pay more under the commission, and units below that range pay less.
• Read the parity terms before you discount your website. Skift reports that the new terms require Vrbo rates at least as low as any other channel, including your own site. Skift also reported that Vrbo plans to ease this for hosts' own websites, but the terms were unrevised in mid-October, per Rental Scale-Up.

Vrbo's 12% undercuts Airbnb and Booking.com on host commission, but it ends the flat fee that held down what a busy unit paid Vrbo.