TL;DR
- Airbnb continues to dominate volume for urban and short-stay markets, while Vrbo remains a stronghold for high-value leisure and family bookings in destinations.
- With Airbnb updating its host-only fee structure for professional managers and Vrbo tightening cancellation penalties, the operational focus for 2025 has shifted from pure occupancy to precision revenue management.
- Common industry patterns show that many PMs are leveraging both platforms: Airbnb for consistent occupancy and Vrbo for maximizing revenue on premium stays.
While the debate between Airbnb and Vrbo often centers on traffic volume, the priority for professional property managers in 2025 has shifted toward maximum exposure and optimizing margins.
Both platforms rolled out significant policy updates this year that directly impact the bottom line. Airbnb standardized fee structures for software-connected hosts, and Vrbo introduced higher penalties for host-initiated cancellations.
Here is a data-driven comparison of how inventory performs across both channels this year.
The profit breakdown: 2025 fee structures
The landscape has changed significantly for property managers using property management software (PMS) like Guesty, primarily due to Airbnb’s mandatory shift in fee structure.
- Airbnb: As of October 27, 2025, hosts connected via PMS in all markets moved to a mandatory host-only fee of 15.5% (16% for Brazil). The old split-fee model (3% host / ~14% guest) was retired for professional managers.
- The impact: Airbnb removed the “service fee” from the guest at checkout, making the host responsible for adjusting their rates to make up for the lost margins. Learn more about this update and the implications here.
- Vrbo: For software-connected managers, the model operates differently. The standard cost is a 5% commission on the booking value. Unlike Airbnb’s new model, Vrbo still charges the guest a separate service fee (usually 6–15%).
- The impact: Direct costs on Vrbo appear lower for hosts (8% vs. 15.5%), but it is often more expensive for guests
Rather than a question of which is better, managing listings on each of these channels becomes a matter of pricing strategy. These nuances require that hosts understand how each channel works in order to adjust their markups accordingly to ensure they are making the desired margins.
The “who”: audience demographics
Profitability extends beyond fees to the type of traveler booking the stay. The two platforms continue to serve distinctly different audiences.
- Airbnb: This platform dominates with Millennials and Gen Z. It remains the default search engine for solo travelers; searches in this segment are up 90% in 2025, with average stays extending to 17 nights.
- Vrbo: This channel remains the stronghold for families and older travelers (45+). These guests typically book earlier and cancel less often, generally seeking “whole home” experiences in traditional vacation markets.
The “what”: property type performance
The specific makeup of your portfolio, whether you manage high-turnover urban apartments or sprawling leisure estates, dictates your platform performance.
- Urban units & studios: Industry data suggests Airbnb captures roughly 85% of the U.S. market for short-term stays in high-density areas.
- Large vacation homes (4+ bedrooms): Vrbo shines in this segment. Data indicates Vrbo listings for large homes in coastal markets capture nearly 45% of bookings. For properties with premium amenities like pools, large kitchens, and high guest capacity, Vrbo is often indispensable.
The 2025 policy shift: cancellation penalties
Operational reliability is now a financial necessity. In 2025, both platforms tightened their cancellation policies, converting operational slips into significant costs.
- Vrbo: As of October 1, 2025, host-initiated cancellations incur tiered penalties from 10% to 100% of the reservation value. The definition of “cancellation” now includes unresolved access issues. If a guest cannot enter and the issue isn’t fixed immediately, it may be classified as a host cancellation with a 100% penalty.
- Airbnb: The platform focuses on rebooking costs. Hosts are generally liable for the cost difference to find the guest a comparable alternative.
Operational takeaway
Manual access and communication now carry higher risks. To protect margins, automating the “access chain” is essential. Tools like Guesty LocksManager™ sync codes directly to hardware to prevent entry failures. Meanwhile, Guesty Guest Communication Services™ provides 24/7 support to resolve issues before they escalate to penalties.
The verdict: why you need both
While comparing the two is useful for strategy, relying on a single platform is rarely the most profitable move.
Airbnb provides volume and occupancy insurance, while Vrbo delivers high-value, low-turnover family bookings that maximize operational efficiency.
The friction of managing both, syncing calendars, adjusting rates for different fee structures, and handling two inboxes, is effectively solved by a PMS like Guesty.
Guesty acts as the central nervous system for this hybrid strategy.
- Unified inbox: Seamlessly manage communication from the Airbnb, Vrbo and many other booking channels from a single screen.
- Multi-calendar: A booking on Vrbo instantly blocks dates on Airbnb, preventing the double-booking penalties mentioned above.
- Rate strategy: Pricing optimization tools, like Guesty’s Revenue Management suite, automatically adjust markups. This allows for a 15.5% markup on Airbnb to cover the host fee, while keeping Vrbo rates optimized for its commission model, ensuring net margins stay protected across channels.
FAQ
Scale requires distribution. While Airbnb typically provides higher booking volume, Vrbo often delivers the highest-paying bookings. Professional managers almost universally list on both to blend occupancy with profit.
Yes. As of October 27, 2025, the split-fee model was retired for hosts connected via software (PMS). All professional accounts are now on the 15.5% host-only structure (16% for Brazil).
For the host, yes. Vrbo charges a 5% commission to software-connected hosts (plus payment processing fees). However, Vrbo adds a service fee to the guest’s bill. Airbnb charges the host 15.5% but charges the guest $0. The net cost to the transaction is similar, but the display price differs.
Technically you can sync availability using iCal links, but this carries a significant risk. iCal creates a lag (sometimes 1-2 hours) creating a risk for double bookings. Further, it doesn’t have the ability to sync rates, listing content and messaging like a professional channel manager. With Vrbo’s new 100% cancellation penalty for check-in failures, a real-time API connection is the only safe option for professionals.
Guesty’s talented marketing team is comprised of passionate professionals who share insightful industry knowledge and shape brand narratives. By bringing a diverse blend of expertise to the table, we are the visionary architects behind the Guesty brand and innovative campaigns that help people understand our product.
