The host fee on VRBO is essential to how the platform operates, helping to connect property owners with travellers while covering operational costs. For UK hosts, understanding these fees is crucial to maximising income and running a successful rental business. Here’s a breakdown:
What is the VRBO Host Fee?
The VRBO host fee is a commission charged for listing and booking properties, covering two main components:
1. Service Fee: Ranges from 3-5% of the booking amount, depending on the host’s subscription.
2. Payment Processing Fee: A flat 2% fee for secure transaction handling.
VRBO Host Fee Structure in the UK
Standard Subscription: 5% service fee.
Premier Partner Subscription: 3% service fee.
Payment Processing Fee: An additional 2% per booking.
Example Calculation
For a £100 booking:
Standard Subscription: £5 service fee + £2 processing fee = £93 payout.
Premier Partner: £3 service fee + £2 processing fee = £95 payout.
Factors Affecting VRBO Host Fees in the UK
Several factors may impact your host fees:
Subscription Type: Premier Partner status offers a reduced service fee.
Location: High-demand locations (e.g., London) may incur higher fees.
Property Type & Amenities: Villas, apartments, or added amenities (Wi-Fi, cleaning) may impact fees.
Length of Stay: Longer stays may have lower fees.
Seasonal Demand: Peak times (holidays, summer) could lead to higher fees.
Tips for Reducing Costs and Maximising Income
Choose the Right Subscription: Frequent hosts can save with Premier Partner benefits.
Set Competitive Pricing: Adjust your rates to account for VRBO fees.
Offer Desirable Amenities: High-demand amenities can support higher rates.
Encourage Longer Stays: Longer bookings can reduce the impact of fees on short-term rentals.
Final Thoughts
While VRBO host fees represent an investment, they offer global visibility, a seamless booking process, and essential tools to manage your property. A clear understanding of the fee structure and strategies for minimising costs can help UK hosts maximise profits and enhance guest experiences. At The Upgrade Authority, we’re here to support your growth with insights to help you succeed in the vacation rental market.