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Guide · UK hosts
Vrbo’s new 12% fee: how much should UK hosts raise their prices?
From 29 October 2026, Vrbo charges pay-per-booking hosts a flat 12% commission, with payment processing included. Until now it was 5% commission plus 3% for processing. Keep your price the same and, by our maths, a £100 booking pays you £88 instead of £92. Here’s how much to raise, what VAT does to it, and why to check your neighbours before you change anything.
In short
- From 29 October 2026, Vrbo’s pay-per-booking hosts pay a flat 12% commission, payment processing included. Vrbo says rates can range from 12% to 15% by region: your Vrbo dashboard shows yours.
- The rate is set by when the booking is made, not when the stay is. A booking made on 30 October for next August pays the new rate.
- If you paid 5% + 3% before, keeping your payout means raising by about 4.5% (our maths: old price × 0.92 ÷ 0.88).
- Vrbo charges VAT on top of the commission where VAT applies. At 20%, if you’re not VAT-registered, the rise is about 6.3% (our maths).
- Check your neighbours first. Vrbo says its traveller service fee will typically be lower after the change, and it doesn’t publish the fee, so the only way to know where you sit is to look.
What changes on 29 October
Vrbo is moving to one fee for hosts on its pay-per-booking model: a flat 12% commission that includes payment processing. It’s charged on your nightly rate and the fees you charge the guest, such as cleaning and pet fees. Taxes and refundable damage deposits are treated separately.
| Pay-per-booking | Commission | Processing | On a £100 booking you keep |
|---|---|---|---|
| Until 28 October | 5% | 3% | £92 |
| From 29 October | 12% | included | £88 |
Vrbo Help Centre, "About the pay-per-booking (PPB) model" (read 17 Oct 2026; the 5% + 3% version as archived on 12 Jul 2026). The £ figures are our maths, before any VAT, for a booking with no taxes or damage deposit.
Three things to know before you work out your new price:
- The booking date decides the fee. Vrbo says commission is calculated on when the booking was made, whatever the stay dates. Bookings made before the change keep the old rate.
- It isn’t 12% everywhere. Vrbo says commission may vary by region, from 12% to 15%, and there are regional exceptions where processing is still charged. Your Vrbo dashboard shows the rate for your listing.
- Subscription hosts switch later. Vrbo is retiring its subscription model. If you’re on a subscription, the change applies when your current term ends.
The maths to keep your payout
Under the old fee you kept 92% of your price. From 29 October you keep 88%. To end up with the same amount:
Our maths: new price = old price × 0.92 ÷ 0.88, which is about +4.5%. A £150 night becomes about £157.
If you connect to Vrbo through property management software, or you’re on a different rate, use your own figures: new price = old price × (1 − your old fee) ÷ (1 − your new fee).
The UK VAT twist
Vrbo’s Help Centre says that where VAT applies, it’s charged on top of the commission. The UK standard rate is 20%. If that applies to you and you’re not VAT-registered, 12% becomes 14.4% (our maths: 12% × 1.2).
On the same basis the old fee was about 9% (5% × 1.2, plus 3% processing), so the rise to stand still is about 6.3% (our maths: 0.91 ÷ 0.856). If you are VAT-registered, Vrbo says adding your VAT ID to your owner account exempts you from paying VAT on its services.
Airbnb vs Vrbo: what you keep
If you list on both, here’s what the same £100 price pays you after 29 October (our maths):
| Host fee | You keep | With 20% VAT on the fee | |
|---|---|---|---|
| Airbnb (single fee) | 15.5% | £84.50 | £81.40 |
| Vrbo (pay-per-booking) | 12% | £88.00 | £85.60 |
Airbnb Help Centre articles 1857 (15.5%, taken from the host’s payout) and 436 (20% VAT on Airbnb’s fees in the UK); Vrbo Help Centre, pay-per-booking fees. Our maths.
But that’s only your side. Vrbo guests also pay a traveller service fee on top of your price, and Vrbo doesn’t disclose how much. Under Airbnb’s single fee, the whole fee comes out of your payout and the guest doesn’t pay a separate one. So the same nightly price can look dearer to a guest on Vrbo.
Before you raise: check your neighbours
Vrbo says its traveller service fee will typically be lower after the change, though it prices that fee dynamically. So a host who doesn’t raise may look a little cheaper to guests than before, and if you raise while your neighbours don’t, you could end up dearer than them. Because Vrbo doesn’t publish the fee, the only way to know is to look:
- Open Vrbo for a weekend next month and search your own area.
- Note the total for five to eight homes like yours: same area, similar size, similar standard.
- See where you sit, then decide.
Then decide night by night
- Where demand is strong (weekends, school holidays, local events), raise to keep your payout, as long as your competitors are at that level too.
- On quiet nights, a smaller payout can still beat an empty night, as long as the price still covers your costs.
Do it before 29 October if you can. Every booking made from that day pays the new rate, even for stays next summer.
On Airbnb as well? Read Airbnb’s 15.5% host fee: should UK hosts raise their prices?
Questions hosts ask
When does Vrbo’s 12% fee start?
Vrbo says the changes begin going into effect on 29 October 2026. Hosts on Vrbo’s subscription model move when their current subscription term ends.
Does the new Vrbo fee apply to bookings I already have?
No. Vrbo says commission is calculated on when the booking was made, regardless of the stay dates, so bookings made before the change keep the previous rate. Bookings made from 29 October pay the new one, even for stays months away.
How much should I raise my Vrbo prices?
If you paid 5% commission plus 3% processing before, about 4.5% keeps the same payout (our maths: old price × 0.92 ÷ 0.88). If 20% VAT is added to the commission and you aren’t VAT-registered, about 6.3%. Check what similar homes near you charge on Vrbo first.
Is Vrbo’s fee 12% for UK hosts?
Vrbo says commission may vary by region, from 12% to 15%, and that your Vrbo dashboard shows the rate for your listing. Its pages don’t list a UK-specific rate, so check your dashboard.
Is Vrbo cheaper than Airbnb for hosts?
On your side, yes: at the same £100 price Vrbo’s 12% leaves you £88 and Airbnb’s 15.5% leaves you £84.50 (our maths, before VAT). But Vrbo guests also pay a traveller service fee that Vrbo doesn’t disclose, so the guest’s total can be higher on Vrbo.
Check it against your real competitors
Whether to raise for Vrbo’s new fee comes down to what similar homes near you charge. You can check by hand, or let PeakRate track the competitors you choose, night by night.
- Free listing audit (Airbnb listings). Paste your Airbnb listing link and PeakRate compares your price and listing with similar ones nearby.
- PeakRate, for the full picture. You choose the competitors that count, PeakRate tracks their prices night by night, and puts a suggested price next to the typical competitor price. Nothing changes until you approve it.
- Built for UK hosts, priced in pounds. From £19 a month for one property (£49 for up to 3), with a 30-day free trial and no card. It sends approved prices through Hospitable today, with more systems coming soon (see the latest).
More guides
- Airbnb Dynamic Pricing
- Is your Airbnb too cheap?
- Christmas and New Year pricing
- How to price a holiday let
- Holiday let occupancy (UK)
- Holiday let income
Sources
- Expedia Group newsroom, "Vrbo Compensation Model Changes" (FAQ, 1 October 2026, read 17 October 2026): flat 12% pay-per-booking commission including payment processing; 12–15% by region; effective 29 October 2026; subscription hosts at the end of their term; commission set by booking date; traveller service fee undisclosed and typically lower
- Vrbo Help Centre, "About the pay-per-booking (PPB) model" (read 17 October 2026): 12% all-in; what the commission applies to; VAT charged in addition where it applies
- The same Vrbo Help Centre article as archived by the Wayback Machine on 12 July 2026: 5% commission plus 3% payment processing
- Vrbo Help Centre, "Add or update your VAT or GST ID number" (read 17 October 2026)
- gov.uk, "VAT rates": 20% standard rate
- Airbnb Help Centre, "Airbnb service fees" (article 1857, read 17 October 2026): most hosts pay 15.5%, deducted from the host’s payout
- Airbnb Help Centre, article 436 (read 17 October 2026): Airbnb’s service fees in the UK are subject to 20% VAT
- Our maths: 0.92 ÷ 0.88 = 1.0455; £150 × 1.0455 = £156.82; 12% × 1.2 = 14.4%; 0.91 ÷ 0.856 = 1.0631; 15.5% × 1.2 = 18.6%
PeakRate makes pricing and competitor-benchmarking software for hosts. Where this guide mentions it, we say so; everything else is sourced above.