Airbnb vs Vrbo – Difference and Comparison

What is Airbnb?

Airbnb is a key participant in the hospitality and travel industries, specializing in short-term vacation rentals that allow guests to personalize their stay far more than conventional hotels do. Airbnb doesn’t own any of these properties. It only serves as a platform for individuals to rent out their properties or extra rooms to guests. The homeowners decide the prices, and payment is collected using the Airbnb app.

Airbnb offers listings all around the globe, from Savannah, Hawaii, Georgia, Honolulu and many more places. The service presently contains over 5.6 million listings in over 220 countries worldwide. On the basis of reservations, the corporation generates a profit. In this case, the owners of the rental space puts the space for rent on the site and gets a commission on each reservation.

Airbnb also suggests that customers message hosts before reserving non-instant book listings to double-check availability. If they don’t hear back from the host within a reasonable amount of time, customers can message other hosts in the region until they find one they prefer. It only enables the communication between hosts and guests through their website, and any effort to offer a phone number or email address is blocked.

What is Vrbo?

Vacation Rentals by Owner, or VRBO, is an online vacation rental business based in the United States. In 1995, David Clouse launched the first VRBO website in Aurora, Colorado. it was then purchased by HomeAway in 2006. On December 15, 2015, Expedia Group bought HomeAway. VRBO was renamed Vrbo on March 27, 2019, and a new logo, capitalization, and pronunciation were introduced. The HomeAway and Vrbo websites will merge in July 2020 to become a single Vrbo website. As a result, whenever a host lists their short-term rentals on Vrbo, they will also be included on HomeAway.

Renters don’t ever share the spaces they rent with homeowners or other lodgers on Vrbo, so when tourists book a rental, they are booking the full property. Rental properties range from large estates to small flats. VRBO provides an excellent online experience and allows owners and guests to communicate in whatever way they choose.

Vrbo began with a homeowner subscription model in which homeowners paid a yearly fee to list their apartment, beach house, or cabin on the internet. Later, as part of the Expedia Group, it added a per-rental charge option with no yearly fee.

Difference Between Airbnb and Vrbo

  1. Guests on Airbnb are permitted to rent out shared spaces, while the focus of Vrbo is only on private property owners. Therefore, individuals are not permitted to rent out shared spaces.
  2. Airbnb offers the finest mobile experience, whereas VRBO leads in terms of web experience.
  3. Airbnb was established in 2008 and its full name is Air Bed & Breakfast, but Vrbo was started in 1995, much before Airbnb, and its full name is Vacation Rental by Owner.
  4. VRBO allows owners and guests to interact in whichever way they deem fit. Airbnb, on the other hand, only accepts communication through their website, and any effort to provide a mobile number or email address is prohibited.
  5. Airbnb operates on a pay-per-booking structure with no yearly subscription fee, instead, it charges a nominal fee only when a reservation is made, whereas Vrbo offers both pay-per-booking and an annual subscription option.
  6. Airbnb presently offers over 5.6 million rentals in 100,000 cities in 220 countries and regions, while Vrbo has over 2 million rentals globally.
  7. The host pays a 3% charge as the host commission rate on Airbnb, whereas the host commission rate for owners is 5% including a 3% credit card processing cost on VRBO.

Comparison Between Airbnb and Vrbo

Parameters of ComparisonAirbnbVrbo
 Accommodation OptionsOn its website, Airbnb provides a variety of lodging options. They consist of single houses, flats, private or shared rooms, and hotel rooms.VRBO exclusively provides single units, which might include an entire house, apartment, cottage, and cabin, as well as houseboats, tree homes, and even castles.
Full- formsThe term “Airbnb” is an abbreviation for “Air bed and breakfast.”The term “Vrbo” is an abbreviation for “Vacation Rental by Owner.”
FoundedBrian Chesky, Joe Gebbia and Nathan Blecharczyk created Airbnb in 2008.David Clouse founded the initial website in Aurora, Colorado in 1995.
Host NetworkAirbnb promotes hosting more than 5.6 million properties in over 100,000 cities across 220 countries around the world.VRBO claims to have over 2 million rentals globally.
Review SectionThe Airbnb website has a dynamic review culture, allowing visitors to submit feedback after their stay.VRBO also has a detailed feedback section after each booking. Homeowners can respond to the reviewer in the VRBO review area.
Service ChargesUsually, service fee rates are less than 14.2 percent. It can also be 16 percent in several circumstances.Service fees are charged at a rate ranging from 6% to 15%.