Vrbo's New 12% Commission: What It Means For Property Managers

Key takeaways

• Vrbo is replacing its previous fee structure with a flat 12% pay-per-booking commission that applies to nightly rates as well as guest fees like cleaning and pet charges.

• To earn the same net payout as you did under the 5% commission, prices must be raised by approximately 7.95% (not 7%), because the new 12% fee applies to the higher total booking amount.

• Property managers using Hostaway can add a Vrbo-specific percentage markup to offset the commission without unintentionally raising rates across other booking channels or altering underlying base calendar prices.

• Adjusting the Vrbo Host Channel Fee to 12% in Hostaway's Financial Settings ensures reporting and payout calculations remain accurate for all new bookings made on or after October 29.

Vrbo is changing its commission structure, and if you're wondering what that means for your earnings, you're not alone.

Starting October 29, 2026, Vrbo will introduce a standard 12% commission for pay-per-booking hosts, replacing its existing fee structure. For many property managers using a property management system (PMS), that means an increase from 5% to 12%.

We know changes like these can be frustrating, especially when you're already balancing rising operating costs, competitive pricing, and the need to keep your properties profitable.

The change will affect your margins, but there are ways to prepare. Hostaway gives you the tools to adjust your Vrbo pricing, manage the impact on your payouts, and keep your financial reporting accurate.

Here’s what's changing, how to calculate the cost to your vacation rental business, and what you can do to prepare before October 29.

What's changing with Vrbo's commission in October 2026?

According to Vrbo's updated commission guidance, the platform is moving to a standard 12% pay-per-booking commission.

The changes take effect on Thursday, October 29, 2026, although the timing and impact depend on your current payment model.

Vrbo is also retiring its annual Pay-Per-Subscription program, although existing subscribers won't transition to the new commission until their current subscriptions expire.

The 12% commission applies to the rental amount and additional fees charged to guests, such as cleaning and pet fees, rather than just the nightly rate.

The new commission is scheduled to apply to bookings made from October 29, rather than being determined by the date of the guest's stay. For reservations made before the change takes effect, check the applicable fee in your Vrbo reservation details.

Note: The standard 12% rate does not apply uniformly in every market. Properties in certain regions including Australia, Europe, and New Zealand, may be subject to higher rates. Check your Vrbo Owner Dashboard for the commission applicable to your listings.

How much will Vrbo's 12% commission cost you?

For property managers previously paying 5% commission, the increase to 12% means a larger portion of each booking goes toward platform fees. And when you're managing multiple properties and reservations, those additional costs can add up.

Let's look at what the change means for a $1,000 booking.

That's $70 less from the same booking, assuming prices remain unchanged. Across 100 bookings of the same value, that would mean an additional $7,000 in commission costs.

How to calculate your new Vrbo pricing

If your goal is to maintain the same amount after commission, simply increasing your prices by seven percent won't fully offset the difference. That's because the new 12% commission is calculated on the higher booking amount.

The formula is:

New booking price = Target amount after commission ÷ (1 − New commission rate)

Let's say you previously received $950 after Vrbo deducted its 5% commission from a $1,000 booking.

To maintain that same $950 under the new 12% commission:

$950 ÷ 0.88 = $1,079.55

That means you would need to increase the booking price by approximately 7.95%, rather than 7%, to maintain the same amount after commission.

Remember that Vrbo's commission applies to additional guest fees, such as cleaning and pet fees, too. If your bookings include these charges, factor them into your calculations rather than looking at your nightly rates alone. Guests compare the overall cost of a stay, not just the nightly rate.

Of course, that doesn't mean you need to raise every listing's price by 7.95%.

While increasing rates may help you earn the same amount from each reservation, higher prices could also affect booking demand. And fewer bookings could mean lower overall revenue, even if you're earning more per reservation.

Depending on your property and market, you may decide to absorb some of the additional cost, adjust prices for certain dates, or increase rates where demand allows. Alsoo review your minimum prices, weekly discounts, last-minute deals, and seasonal promotions, which can all affect how much you take home from a reservation.

The goal is to find the right balance between protecting your earnings and keeping your properties competitive. Once you've decided on an approach, Hostaway gives you the tools to put it into practice.

These calculations are illustrative and assume both commission rates apply to the same booking subtotal. They exclude other applicable taxes, fees, and charges. Actual earnings will depend on your Vrbo arrangement and booking details.

Further reading: Hostaway's guide to calculating prices after Airbnb commission changes

How Hostaway can help you manage Vrbo's commission increase

We know the last thing you need is another complicated pricing change to manage. That's why we've outlined a few straightforward ways to prepare for Vrbo's new commission using the tools already available in Hostaway.

Here's what you can do.

1. Adjust your base rates in the Hostaway Calendar

If your commission costs are similar across booking channels, updating your base rates may be the simplest approach.

You can make these changes directly in the Hostaway Calendar for the listings and dates you select.

To update your rates:

1. Go to Calendar in Hostaway.

2. Select the listing and dates you want to update.

3. Enter the new nightly base rate and save your changes.

If you've already configured channel-specific markups, remember to review them when adjusting your base rates. Otherwise, you risk unintentionally increasing prices twice.

2. Add a Vrbo-specific markup

Don't want to change your base rates across other booking channels?

Hostaway lets you configure a Vrbo-specific markup, so you can adjust the nightly rates sent to Vrbo without changing your underlying calendar prices for other channels.

To configure a markup:

1. Go to Listings > Price & Fees.

2. Enter your chosen percentage in the Vrbo markup field.

3. Click Save.

Vrbo markups in Hostaway must be entered as whole-number percentages. If your calculation produces a figure such as 7.95%, you'll need to choose an appropriate whole-number markup or adjust your underlying rates.

You can also apply the same percentage markup to multiple listings, making it easier to manage changes across a larger portfolio.

3. Update your commission settings for accurate financial reporting

Once you've reviewed your pricing, there's one more important step: making sure your financial reports reflect Vrbo's new commission.

You can update the Vrbo Host Channel Fee setting in Hostaway to 12%, helping ensure your financial calculations accurately account for the new cost.

Here's how:

1. Go to Listings > Edit.

2. Open Financial Settings.

3. Locate the Vrbo Host Channel Fee field.

4. Enter 12 and save.

5. Repeat for each applicable Vrbo listing.

Remember, this setting affects financial calculations and reporting only. It does not change the rates guests see on Vrbo, and the updated percentage applies only to new reservations received after you save the change.

Keeping your commission settings accurate can help you better understand how the new costs are affecting your reservation finances.

For detailed instructions on all three options, see Hostaway's guide to preparing for Vrbo's 12% commission.

When should you update your Vrbo pricing?

Vrbo's new commission takes effect on Thursday, October 29, 2026. Hostaway recommends reviewing and updating your pricing and financial settings by Wednesday, October 28, so your listings are prepared ahead of the transition.

If you're currently on Vrbo's annual subscription model, your switch to the new commission will take place when your existing subscription expires. It's still worth reviewing your pricing in advance so you're prepared when the new rate applies.

Keep an eye on your Vrbo performance after the change

Once you've updated your pricing and financial settings, it's worth monitoring how your Vrbo listings perform over the following weeks.

Pay attention to booking volume, occupancy, average daily rate (ADR), and earnings after commission. If bookings slow down, review your pricing alongside seasonal demand and market conditions to see whether further adjustments make sense.

You don't need to get every pricing decision perfect from day one. What matters is having a clear starting point and making adjustments as you learn what works best for your properties.

Stay in control of your pricing with Hostaway

Vrbo's new commission may not be welcome news, but you have options to manage its impact on your short-term rental business.

Whether you decide to adjust your prices or absorb some of the additional costs, the important thing is having the information and flexibility to make the decision that's right for your vacation rental portfolio.

With Hostaway, you can manage your Vrbo rates, make channel-specific adjustments, and keep your financial reporting up to date, all from the platform you already use to run your business. We recommend reviewing your settings by October 28, 2026, so you're prepared when Vrbo's new commission takes effect the following day.

For detailed instructions, see our step-by-step guide to preparing for Vrbo's 12% commission.

And if you need help, our support team is available at customersuccess@hostaway.com.

FAQs

When does Vrbo's new 12% commission take effect?

Vrbo's new 12% commission takes effect on October 29, 2026, for pay-per-booking hosts. Hosts on existing annual subscription plans will transition to the new commission when their subscriptions expire. Hostaway recommends updating your pricing and financial settings by October 28 to prepare for the change.

Does Vrbo's 12% commission include payment processing fees?

Yes. Vrbo's standard 12% commission includes payment processing fees, replacing the previous structure of 5% commission plus 3% payment processing for hosts not using a PMS. However, additional processing charges or different commission rates may apply in certain circumstances or regions. Check Vrbo's official fee guidance for details.

How much should I increase my Vrbo prices to offset the 12% commission?

If you previously paid 5% commission, you would need to increase your total commissionable booking price by approximately 7.95% to maintain the same amount after commission. However, this is only a starting point. Consider your market, booking demand, cleaning fees ,and other charges before deciding how much to adjust your rates.

Can I increase my Vrbo prices without affecting my other booking channels?

Hostaway allows you to configure a Vrbo-specific markup without changing your underlying calendar rates for other channels. Go to Listings > Price & Fees, enter your chosen whole-number percentage in the Vrbo markup field, and save. Review any applicable Vrbo pricing requirements before making changes.

Does Vrbo's new 12% commission apply to cleaning fees and other additional charges?

Yes. Vrbo's 12% commission applies to the rental amount and additional guest fees, including cleaning and pet fees. This means the commission is calculated on more than just your nightly rate. When reviewing your pricing, remember to account for these charges to better understand how the new fee structure may affect your earnings.