When distribution costs change, knowing your numbers matters more than ever.
Vrbo's new commission structure takes effect October 29, 2026, and for many professional property managers, it means a significant increase in distribution costs.
Change is nothing new in vacation rentals, but this one could have a real impact on your bottom line. Before adjusting rates or making changes to your distribution strategy, it's worth taking a closer look at the numbers.
What's Changing with Vrbo?
Vrbo is moving many professional property managers to a 12% commission structure. For managers previously paying a 5% commission through their property management system (PMS), that's a substantial increase.
A few things to know:
- The new structure takes effect October 29, 2026, although terms and timing may vary by agreement or region.
- Existing annual subscription arrangements will transition according to their terms.
- Vrbo may continue to charge guests a separate service fee.
- Commissions may apply to rental charges and mandatory fees, including cleaning and pet fees, rather than just the nightly rental rate.
Review your agreement and communications from Vrbo to understand exactly how these changes apply to your business.
What Does This Mean for Your Bottom Line?
On a $3,000 reservation, moving from a 5% to a 12% commission means an additional $210 in fees. Multiply that across hundreds of reservations, and the impact adds up quickly.
And remember, commissions may be calculated on more than just rental revenue. Additional charges, such as cleaning fees, can increase the total commission expense.
Here's a useful exercise: Look at your last 12 months of Vrbo reservations and calculate what an additional 7 percentage points in commission would have meant for your business, using the charges subject to commission.
That number gives you a starting point for evaluating your pricing, owner agreements, and distribution strategy.
Five Things Property Managers Should Consider
1. Know the True Cost of Every Booking
Not all reservations are equally profitable. A direct booking, a Vrbo reservation, and an Airbnb reservation might generate the same rental revenue but deliver very different results after expenses.
Booking volume matters, but so does what you actually keep.
Barefoot's trust accounting provides a strong financial foundation and reporting tools to help you manage costs, make informed decisions, and maintain accountability to your owners.
2. Take Another Look at Your Pricing Strategy
Raising rates to offset higher commissions might seem like the obvious answer, but it's not always the right one.
Consider your market, guest expectations, owner agreements, and how higher rates might affect bookings. You'll also want to review Vrbo's current policies regarding rate consistency across channels before making changes.
The goal is to protect your margins without pricing yourself out of the market.
3. Give Your Direct Booking Business Some Attention
Vrbo and Airbnb can be valuable sources of reservations. But the more dependent you are on third-party channels, the more vulnerable you become when their fees or policies change.
Your website and your relationships with past guests are valuable assets. Are you making the most of them?
With Barefoot, you own your website. Our integrated booking engine, automated guest communications, loyalty programs, and promotional tools help you encourage repeat business and build direct relationships with guests.
It's not about abandoning the OTAs. It's about making sure they're part of your strategy, not your entire strategy.
4. Talk to Your Property Owners
Owners may have questions about how these changes affect their rental income and who will absorb the additional costs.
Before making adjustments, review your management agreements to understand how distribution fees are handled. Some managers absorb these expenses, others pass them through to owners, and some share the costs. Getting ahead of those conversations is always better than explaining a surprise on an owner statement.
Barefoot's trust accounting and owner reporting give you the information you need to explain distribution expenses, communicate changes, and maintain transparency with your owners.
5. Look at Your Total Technology Costs
While you're reviewing distribution expenses, it's a good time to look at what you're paying for your technology, too.
Subscription fees are only part of the picture. Transaction charges, payment processing markups, integration fees, and other costs can make a significant difference in what you're actually spending.
At Barefoot, we believe in straightforward pricing and giving property managers control over their businesses. We don't add credit card processing markups or currently charge fees for API access. Our solution combines true trust accounting, flexible integrations, direct booking capabilities, and comprehensive front- and back-office functionality.
And there's something else we think matters: experienced people who know your business and answer the phone when you call.
The Bigger Picture
Vrbo's announcement is another reminder that the vacation rental industry never stands still. Distribution costs change, technology evolves, and property managers have to adjust.
You can't control every change, but you can make sure you have the financial visibility, flexibility, and tools to respond.
For more than 25 years, Barefoot has helped property managers do just that. Your business should be built to adapt, not react.
Let's Talk
Whether you're reviewing distribution costs, looking to grow direct bookings, or reconsidering your technology expenses, we'd welcome a conversation about how Barefoot can support your business.
