When Vrbo Hosts Charge Junk Fees
06.12.2023 - 04:26
/ skift.com
/ Joe Biden
/ Srividya Kalyanaraman
Welcome back, it’s a brand new day to talk about junk fees — as discussed on TikTok. A viral video posted by a comedian scoffs at short-term rentals and sometimes-exorbitant “host fees.”
In his TikTok video, comedian Jesse Martin highlights how a $172 per night charge results in a total price of $972 for two nights — $108 in service fee, taxes and a $425 host fee. Airbnb was quick to confirm to that the receipt displayed on Martin’s video is from Vrbo.
Vrbo verified to Skift that that the booking in question was a Vrbo transaction. “The receipt is verified by Vrbo,” a spokesperson said. “Host fees are set by the host and displayed separately to service fees when applicable.”
Some of the custom fees hosts can set on Vrbo can include for air conditioning, linens, water and more.
Last week, we reported on Travelers United’s decision to file a lawsuit against Hyatt regarding its “junk fee” practices. This aligns with the ongoing spotlight on travel-related fees, which gained prominence following President Joe Biden’s mention of the issue in his State of the Union address in February.
The consumer group filed the lawsuit filed in Washington, D.C., a jurisdiction that mandates clear and upfront pricing. But since then Hyatt displays rates plus resort fees upfront on a traveler’s first search — the hotel chain appears to have changed its site within the past month or so.
But where do short-term rentals stand on this?
Property manager Vacasa may sometimes charge a custom hot tub fee that could be also be categorized as junk fees and excessive.
The jury is still out on whether or not cleaning fees are “junk fees.” A guest can tell exactly what they paid for a cleaning service. Sometimes they clearly are more costly than what the platform paid for the service, and some argue hosts can use cleaning fees as profit sources.
The other fee charged by property managers, depending on the size and nature of the rental, is a “property protection plan” or a “security fee” — or a damage waiver fee (think: party house damages).
“We have short-term and long-term rental companies. In both companies, our fees are vital to providing professional services and cover additional costs placed on us by local and state regulations,” Tiffany Edwards, a strategic consultant for short-term vacation rental organizations and owner of vacation rentals, told Skift earlier. “It’s very unfortunate our fees are lumped into a narrative of junk fees and corporate greed. It further demonstrates that our industry is misunderstood and there is little education regarding the processes and work associated with rentals.”
For their part, a lot of hosts and operators feel that this issue shouldn’t apply to them the same way it does to hotels or