Momentous insights on how does Vrbo work.


Vrbo was created by David Clouse from Aurora, Colorado, in 1995. He created this website initially to rent out his Breckenridge Ski Resort. The site is for homeowners to list their properties for rent for short term periods. Vrbo was initially known as vacation rentals by owners. In 2006, Vrbo was acquired by HomeAway. Eventually, the Expedia group Inc. acquired HomeAway in 2017. Recently, in 2019 VRBO was rebranded as Vrbo along with a new logo and capitalization. The pronunciation of the name of the company was also remodeled.

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As per the records in April 2019, the website hosts more than 2 million listings for travelers to choose from. This makes it a primary service provider in the vacation rentals market. Vrbo uses an annual subscription model, which allows the homeowners and other real estate owners to rent out their properties on Vrbo around the year.

While planning to build a business like Vrbo, it is essential to understand how does Vrbo work and how does Vrbo make money. The Vrbo Business model is looked at in detail, along with all the stakeholders involved. Customer and employee retention also has to be studied in detail.

How Does Vrbo Work? 

Every company has a specific way of functioning, and Vrbo has the same. Before digging deep into how does Vrbo work, let’s understand the stakeholders involved in the business. Vrbo being a vacation rental by owners’ service. The homeowners are a significant part of the Vrbo business model. The travelers are the other important of the Vrbo business model which make up for a considerable amount of revenue generated by the company

Let’s understand how does Vrbo work for both of its stakeholders in detail. We will also look into other aspects of the company in the article below

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How Does Vrbo Work For Travellers?

The majority of users come to the website to book accommodation for their vacations. These users go through a fixed process through which they can book a stay through the website. Let have a look at how does Vrbo work for the Travellers.

Here are the steps every traveler has to follow to confirm a booking with one of the homeowners on the website:

  1. Make an account
  2. Search for your perfect destination
  3. Request Booking
  4. Checkout

This sums up how does Vrbo work for travelers. Keeping it simple to attract more users to the platform and expanding business.

How Does Vrbo Work for Homeowners?

Homeowners or renters make up for the other significant part of the Vrbo business model. To understand how does Vrbo work for the homeowners or the renters, it is essential to know how easy it is to create a listing on the portal.

Here are some of the steps that the homeowners need to follow while creating a listing on Vrbo:

Step 1: Register

Before creating a listing, the renters need to register themselves on the website and create an account just like the users do. It is different from the renters since they will be creating listings on the portal. The account is essential since some owners might have multiple listings to develop as well.

Step 2: Create a listing

Now that the account is created, the hosts are supposed to create a listing on the website. The listing needs to have all the details about the property, which is listed. The features can include the availability, price rates of the property, services available, amenities, and others on the listing. Detailed listings tend to get booked fasters than those which are not.

Step 3: Solve Questions

Once the listing is live, the renters might get questions from the travelers who are interested in the listing. The renters need to attend to their queries. A good conversation while solving problems can increase the chances of a property to be booked around the year.

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Step 4: Confirm Booking and Receive Payments

After the queries are solved, the travelers request bookings to the homeowners. The renters need to approve these requests for the travelers to proceed with their booking procedure. Once the renters accept the reservations, the travelers continue to pay for the same, and the renters earn while renting out the properties

Step 5: Reviews and Ratings

After the stay has ended for the guests, the hosts should make it a point to request the travelers to give them a review and a rating on the portal. The algorithms of the portal encourage the listings with great reviews and ratings. it enhances both the standing of the listing on the portal and the reputation of the listing among the users

This is how does Vrbo work for the renters on the portal. Vrbo business model has provided the renters with several benefits, which makes it a viable platform for them to enlist their property. This is how the Vrbo business model works for its stakeholders.

Additional Features

Here are some extra features which differentiate it from its competitors in the market. Some of these other features are:

  1. You can save your favorite listings in your profile
  2. The renters can include add-ons in their listings. Add-ons are services that can be made available for the guests with additional payment.
  3. A variety of filters to apply to your accommodation search which makes it easier for you to conclude your search

There are several other additional features which make the company different from its competitors.

These are some of the core values that Vrbo functions. To build a business similar to Vrbo, it is not only essential to understand how does Vrbo work and how does Vrbo make money, but it is also crucial to look into how is Vrbo leading their employees and conquering the market.

How Does Vrbo Make Money?

While designing a business model, it is essential to understand how does Vrbo make money. To look deeper into the Vrbo revenue model discussed below are the income sources of the business. The significant revenue of the company generate via the portal flows in through the following:

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Service Tax

Vrbo charges a small amount from the travelers as service tax. This is charged for the convenience provided by the platform and the several facilities offered by the company. This tax is included in the final booking that the client pays for, and this charge directly goes to the company


The renters or the homeowners are charged commissions in every booking, which is done through Vrbo. These commissions are charged to the renters for several reasons, such as exposure to millions of clients daily, generating more business, bringing credibility, increasing revenue, and more. The renters pay a small percentage of the revenue generated on each booking.

The renters can also sign up for an annual subscription with the company, which allows them to post listings around the year. There might be some terms and conditions from the company based on the package a renter selects for the annual subscription.

This is everything you need to know about Vrbo – how does Vrbo work, and how does Vrbo make money. Vrbo business model and Vrbo Revenue model are also discussed in detail. Hire the best developers and create an easily navigable website to start your Vrbo-like business and earn profits.

Vrbo Business Model Canvas

Vrbo Business Model Canvas

How to Launch Your Own Business Similar to Vrbo?

If you’re willing to start your own vacation rental business – you should go with Vrbo clone which has customized features to let you roll with your own rental business.

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