I have used AirBnB, Vacasa, and VRBO/Homeaway on multiple occasions. The only issue I encountered was with an AirBnB "Superhost" canceling my fully paid for reservation on me. Here are my notes on using the different services:
Vacation rental options, from lowest to highest risk:
- Properties I have booked before. But beware of owner or manager changes.
- Property managers such as Vacasa, Odalys, Turnkey, or Wyndham Vacation. But note that Vacasa, which was formed with the merger of 200 property management companies, is now attempting to compete with AirBnB by listing owner-managed properties.
- AirBnb Plus (currently only in a few cities; inspected property only, no host cancelations for previous 12 months, standards regarding maintenance, equipment, comfort, and design; otherwise same as AirBnb)
- AirBnb (good payment protection, penalties for host cancelations and travel issues, automatic reporting of host cancelations in reviews)
- AirBnb tries to keep the identities of the hosts and guest secret as well as the true location of the property, in order to prevent side deals. But that means that hosts and guest are completely dependent on reviews, photographs, and “Superhost” designations, all of which have at times proven to be unreliable.
- Airbnb holds all payments until 72 hours after check-in.
- Starting of August 26, 2022, AirBnB’s new policy on “avoidable Host cancellations”: In addition to a full refund to the guest, the Hosts must pay AirBnB a penalty fee from $50 to $1,000 (a 10x increase) if they “cancel on guests for preventable reasons—like accidentally double-booking or wanting to host friends and family instead”. They also owe the fee and guest refund if a reservation is canceled by a guest post check-in (up to 72 hours), due to a “serious issue created by hosts” which justifies rebooking them elsewhere. Airbnb customer service reps are the ones deciding whether an issue post check-in is serious enough to force hosts to refund guests, Airbnb to rebook another place, and the host to pay a cancellation fee.
- If the reservation is canceled more than 30 days before check-in, the host’s penalty fee is 10% of the reservation amount. If the reservation is canceled more than 48 hours and less than 30 days before check-in, the fee is 25% of the reservation amount. If the reservation is canceled 48 hours or less before check-in, or after check-in, the fee is 50% of the reservation amount for the nights not stayed.
- When a host cancels a confirmed reservation, the host’s calendar will be blocked for those dates, preventing a unit from getting relisted at a higher price.
- The host may face account suspension for repeated cancellations.
- The host’s Superhost status or eligibility “may change”.
- Beware of fake AirBnb sites with fake listings that look and behave exactly like AirBnb but keep your wired deposit.
- Homeaway/VRBO (same company) using their secure payment system (best legally binding guarantee including return of deposit; but many owners qualify for Advanced Payment that distributes payments to them immediately rather than holding them until after check-in which means that Homeaway/VRBO does not have your money to refund in a dispute)
- Started out as a “lead generation” service to connect owners and renters, and still operates that way for many of its properties. Although that can make payments more dangerous, it allows the owners to build long term relationships with their renters, and for prospective renters to check out the property with Google maps, local authorities, etc. before renting C. Also, it allows both trusted parties to avoid heavy fees by bypassing VRBO.
- Complaints note that VRBO refers guests to the owners to resolve disputes. Also, “they hide behind their excuse of the contract not being with them but with the owner and therefore the owner is allowed to deduct from your credit card whatever amount of money what they like for damages”.
- Complaints support that VRBO hosts sometimes cancel a reservation on no notice and then relisted their units for more than twice the price. VRBO has no policies to prevent or even discourage that.
- Owners view VRBO as more friendly than AirBnb toward the owners as opposed to tenants in disputes
- AirBnB’s much more aggressive new policies on host cancelations will chase hosts who want to maintain the privilege of arbitrary cancelation over to VRBO, which could have the effect of making VRBO host cancelation more likely than before
- TripAdvisor Rentals listings using their secure payment system (second best legally binding guarantee, but does not cover return of deposit; good payment protection: as with Airbnb, owner does not receive funds until after check-in)
- “Visited by Tripadvisor” ribbon means that they used a Tripadvisor hired photography service – at least it provides some evidence that the property actually exists and is as photographed
- Otherwise, same as VRBO or even just a pass-through to VRBO
- Homeaway, TripAdvisor or Bookings.com not using their payment system (unless it is for categories 1 or 2 properties above)
- Ebay, Craigslist (unless it is for categories 1 or 2 properties above)
All of these can cancel right up to or even past the last minute (i.e. after your arrival). But AirBnB now penalizes hosts with substantial penalties for doing that and guarantees a rebooking or return of all payments to the guests, with all decisions made by AirBnB (not the hosts). Since they do not transfer the payments to the hosts until 72 hours after check-in, they control the funds to do any refunds. Also, they now automatically report host cancelations in the reviews.
If Tripadvisor Rentals actually starts displaying the number of owner cancelations (as their contract warns owners that they will), and if the displayed number is reliable (unlike AirBnb’s Superhost rating), then they could move up a notch on the list. But for reason outlined below, this may not happen. (And it is not clear to me that Tripadvisor Rentals is anything more than a front for VRBO).
All are much riskier than hotels, especially hotels booked through third parties such as Priceline, Hotels.com, Bookings.com, or Hotwire. Consider a cancelable backup booking.
Thoughts:
What owners want: a set of known good renters who will rent for weeks at a time, return next year, pay their bills, do no damage, do not give them bad reviews, and are willing to bypass the booking companies and their fees.
What the booking companies want: for everyone to use their payment system, pay their full fees, no side deals, no defections to their competitors, renters and owners completely dependent on them, no liability.
Host/owner cancelations: The reality that the industry wants to hide is that host/owner cancelations are part of the game that owners use to fill their calendars. For example, if there are no penalties all of the owners would cancel my 3 day reservations if it meant they could book a longer reservation, especially from a known good customer. They only want short rentals to fill in the holes or if there is a bad season and they cannot fill out their calendars with long rentals. When they cancel a reservation, it is the booking company that takes the hit in reputation, since the canceled owner cannot post a review (2022 update: AirBnB now automatically reports owner cancelations). So they do a dance with their booking companies, where the booking company attempts to dissuade cancelations, while the owners threaten to jump ship to their competitor if they let prospective renters know that they cancel. In contrast, hotels do not want a reputation of unreliable reservations (since most of their business comes from business travelers, travel agents, and tour companies), so they rarely cancel, and if they do they attempt to make it up to the customer. Property rental companies probably fall somewhere in between: less likely to cancel than owner-managed listings, but not as reliable as hotels, inns, and resorts. With owner-managed properties, short duration rentals in high season from an unknown renter are the most likely to be canceled by owners. On the other hand, AirBnB’s new penalties and automatic reporting of host cancelations change this calculus in the guest’s favor. They are probably reacting to a problem that is getting worse, per this quote: “We operate a Florida specialist B2B vacation home channel to the travel trade called Ocean Beds. 2022 has been the most challenging year on record for avoidable cancellations.”