Learn how Vrbo host fees, commission fees, and payment processes work in Hostaway and what to review for reservation payouts and charges.
Managing VRBO (part of Expedia Group) host fees, commission rates, and payment-related processes is crucial for hosts using the Hostaway platform. Below are details on these processes, broken down into clear sections to help you navigate them effectively.
Overview of VRBO Host Fees
The host fee on VRBO represents the commission VRBO charges for bookings. These fees are separate from any fees displayed on the VRBO platform, such as reservation fees, which originate from tools like Hostaway. Importantly, Hostaway does not control or share in these fees; they are imposed and managed directly by VRBO. If you have questions regarding the host fee or require more clarification, contacting VRBO directly is recommended.
Monthly Commission Fee Collection Processes
When a guest books through VRBO, they pay the full reservation amount upfront, including a guest service fee. VRBO deducts the guest service fee from this amount before sending the host their payout. Commission fees (such as 5% of eligible bookings for that month) are collected separately at the end of each month. VRBO processes the commission by charging the host's credit card on file instead of deducting this amount from each payout. This monthly deduction ensures hosts can clearly track commissions separately from individual payouts.
Reporting and Estimation of VRBO Fees
For accurate financial tracking, Hostaway’s reporting tools allow the creation of formulas to estimate VRBO fees. However, variations in VRBO’s fee calculation methods mean these estimates may not always be precise. For the most reliable data:
- Utilize VRBO's direct data export capabilities if available.
- When applicable, consider integrating with VRBO APIs to pull precise fee data.
- Regularly cross-check formulas within Hostaway to ensure alignment with VRBO's latest fee structures.
Ensuring Accurate Financial Settings Across Listings
To apply VRBO commission rates accurately across all connected listings in Hostaway, you must update the "VRBO Host Channel Fee" percentage under Financial Settings for each listing individually. Keep in mind that these settings do not propagate across all listings—you need to verify and adjust them manually. This step ensures consistency in your financial planning and reporting.
By following the above principles and best practices, you can effectively manage VRBO host fees and ensure accurate financial processes across your Hostaway setup. For further assistance with VRBO-specific issues, contacting VRBO directly remains the best course of action.