As you know, I have been involved with the discussions and direction of Sonoma County’s Vacation Rental Ordinance. I am ready to produce a Market Intelligence report covering all accommodations in Sonoma County and will be able to customize the results by district, location, property configuration (number of bedrooms) and rate. For properties reporting TOT, the report will also demonstrate how you are performing and how you rank compared to other similar properties.
- a number of Vacation Rental by Owner properties have left the VRBO platform and seem to be showing up on AirBnB’s site. It’s not surprising given VRBO’s model since being acquired by Expedia and owners are not happy. See below for the latest information on the fees associated with each:
Annual Subscription for year round rentals: $349
Pay-Per-Booking Fee. This overall fee is comprised of:
- 5% commission charged for the rental amount, any fees (such as cleaning or pet fees), and any additional payments.
- 3% credit card processing fee charged on the total payment amount you receive from your traveler, including taxes and refundable damage deposits. The portion of the processing fee charged for the damage deposit is refunded when you refund the deposit.
- 2% international surcharge may apply if using a non US credit card.
3rd Party Outsourcing: 13% for those who don’t have time to manage their listing.
To help cover the costs of processing guest payments, we charge hosts a 3% service fee every time a reservation is completed. The amount of this service fee is calculated from the reservation subtotal (before fees and taxes).
We also charge guests a guest service fee to cover the cost of running Airbnb. The exact amount of the service fee is displayed before guests confirm a booking. Guest service fees are typically 6-12% but can be higher or lower depending on the specifics of the reservation. The higher the subtotal, the lower the percentage so you can save money when booking large reservations.
I’m sure you can now appreciate why rental owners as interested in having guests book directly through their own sites to save both the owner and the consumer a lot of extra fees tacked on to their vacation experience. The argument here is the marketing reach of both VRBO and Airbnb, nevermind other vacation booking sites such as Flipkey (TripAdvisor).
I’ll continue to watch and report trends as I see them happening.