Leaving Hostaway because of their booking fee?

VRBO and Owner Rez Bookings and Fees

Rachel P
Jul 28, 2023 7:06 AM
Joined Mar, 2023 21 posts

Can anyone explain how Owner Rez an VRBO work in regards to fees w VRBO? What does it mean when VRBO states:

“If you use a property management software to manage your listings, you are charged a 5% booking fee for bookings made through our family of sites.  “(I think I get this. It’s the typical fee they are charging owners if you do t have a subscription).

The part I don’t understand is:  “If you source the reservation to our sites,  and the reservation was not booked through our checkout flow, you will be charged a 10% booking fee.” What does this mean? 

Lastly, is payment for a VRBO booking allowed to be collected through Owner Rez instead of VRBO collecting it? Is it better to do it this way? 

thank you! 

Bri
Aug 2, 2023 7:28 AM
OR Team Member Joined Mar, 2022 110 posts

Hi Rachel!

Vrbo onboards all new API connections on a Pay Per Booking plan. If you were on an annual subscription plan prior to connecting, it seems that often, the system is smart and properties that previously were on subscription will be grandfathered back in to that. It that doesn't happen, you can reach out to Vrbo IPM support to request that you be placed back on that annual subscription.

If you create a booking in OwnerRez and allocate Vrbo as the listing source, but the guest did not step through the Vrbo checkout flow directly on platform, you will be charged a 10% booking fee for that booking. So, basically, don't do that normally, and if you do, make sure to adjust the charges so the guest is paying you more to cover that. Vrbo guests must book through the checkout flow in Vrbo in order for Vrbo to collect their channel fees from the guest. That is also how Vrbo grabs the card data to pass to OR via the API.

Payments for Vrbo bookings are allowed to be collected through OwnerRez when you are API connected, and processed via your payment processor. That being said, the Vrbo guest does need to initially enter their payment information on Vrbo's platform so that Vrbo can collect those channel fees from the guest. If you require a second payment on your bookings, OwnerRez will automatically charge the card on file on the due date, as long as your settings are configured to do so. Vrbo has already taken their cut when the guest entered their card for the first payment.

Fernanda G
Aug 12, 2024 7:54 PM
Joined Jul, 2024 1 post

Hi Bri!

Is there a way for VRBO to charge the guest the 100% payout? In other words, can VRBO collect the total booking amount along with their fee and then pay me the remaining portion? I understand that many hosts use OwnerRez to avoid this situation, but in my country, there are significant limitations with credit card processors.

Im about to API connect but in my case vrbo will be a failure if I need to process their payments.

Thanks for your advice.

Caleb M
Aug 13, 2024 10:29 AM
OR Team Member Joined Mar, 2022 174 posts

Hi Fernanda,

As long as you're API connected to VRBO then generally no. There's typically no means to accomplish what you're looking for yet.

We don't generally recommend not being API connected, but if you really need to you could try utilizing iCals instead.

This could lead to more headaches down the road such as double bookings, but it would allow Vrbo to remain in charge of the payment process.