Vrbo Compensation Model Changes to Pay-Per-Booking model
Vrbo is retiring its Pay-Per-Subscription (PPS) model and transitioning hosts to a Pay-Per-Booking (PPB) model to align with industry standards, improve competitiveness, and drive greater demand for hosts.
New Commission Structure
- Hosts will pay a flat 12% commission fee per booking, including payment processing fees.
- Commission rates may vary by region and range between 12% and 15%.
Payment Processing Changes
- From 29 October 2026, payment processing fees will be removed for hosts using Vrbo's merchant-of-record system, except in certain regions with different compensation models.
Impact on Existing Bookings
- Bookings made before the new model takes effect will follow the previous fee structure.
- Bookings made after implementation will be charged under the new commission model.
Benefits for Hosts
- Free property listings with no annual listing fee.
- Access to tools for pricing, calendar management, guest communication, and booking management.
- Ability to set house rules and control guest eligibility.
- 24/7 support, secure payments, and host protection services.
Key Takeaway
By moving to a simplified Pay-Per-Booking model, Vrbo aims to offer more transparent pricing, remain competitive in the vacation rental market, and provide hosts with a streamlined booking and payment experience.
