Vrbo Rate Automation: How Does It Work?
You can activate Vrbo’s rate automation if you select MarketMaker in your Vrbo owner dashboard. Next, select 'Rate automation' and, in your side panel, set your rate range, duration of rate adjustments, and any seasonal rules. Then you need to check the box to accept the terms and conditions, and finally, select Turn on rate automation.
Rate automation adjusts rates from your base rate every 48 hours based on MarketMaker’s data. The tool can quickly monitor millions of available data points, including supply and demand trends, seasonality, rates of booked versus available properties, historically booked rates, property features, and amenities.
You can customize your rate settings to be in control of your pricing:
- Add minimum and maximum rate limits so that your suggested rates will never exceed or fall below your defined thresholds.
- Set seasonal rules to have unique minimum and maximum rate limits for specific time periods, such as holidays and peak and low seasons.
- Exclude certain dates you prefer to set manually (you can set up to 10 date ranges to be excluded from rate changes).
- Easily override suggested rates or disable automation at any time, for any reason.
- Choose how far in advance the tool should adjust rates (90 days or 180 days).
Should You Use Vrbo Rate Automation for Your Listings?
Rate automation gives Vrbo hosts and property managers a helping hand in setting competitive prices so they can focus on marketing their vacation rentals and spend more time on enhancing the guest experience. However, the tool offers only a basic in-platform solution, so it may not be the best option for you.
- The rate automation algorithm focuses on internal data from Vrbo’s comparison tool MarketMaker, which may not provide a complete picture of your local vacation rental market. It doesn't consider data from other major online travel platforms and local listing sites.
- It’s also important to remember that the rate automation is aligned with Vrbo's interests. Since the platform charges a commission for each booking, the tool prioritizes bookings over host income. It may lower rates to attract more guests, which means you may earn less per reservation.
- This complimentary service is limited only to the Vrbo platform, just like Airbnb Smart Pricing works only for Airbnb listings. If you market your property on multiple booking channels, it will be challenging to control your nightly rates and maintain parity.
What Are the Alternatives to Using Vrbo Rate Automation?
Adjusting your nightly rates manually based on your market research isn’t the best decision, especially if you manage several STR properties listed on multiple channels, because of the rapidly changing market trends and fierce competition. The process is time-consuming and may lead to overpricing or underpricing, resulting in lost profits.
A better alternative is to rely on Hospitable's built-in Dynamic Pricing solution. It can help you find the optimum price to maximize your revenue and ensure a high occupancy rate with the right guests across your connected booking channels, including Airbnb, Vrbo, Booking.com, Agoda, and your Direct booking website.
You won’t have to manually update your prices. Hospitable’s intelligent pricing engine will automatically adjust your rates using millions of data points to respond to market conditions in real time. The best part is that our Dynamic Pricing feature is included in the Host, Professional, and Mogul subscription plans at no additional cost.