By Laura Pennington  |  April 4, 2019

Category: Consumer News

Two huts face the beach.Consumers who make a booking on VRBO or similar sites, such as VacationRentals.com and Home Away, might expect that they would receive a full refund of their service fee if the reservation was canceled through no fault of the person who made the reservation.

Sometimes these bookings can be canceled by the property owner or because the listing turned out to be fraudulent, a situation that should lead to a refund of the VRBO service fee or similar fees charged by other platforms.

Unfortunately, some renters have reported they were charged the usual fees associated with their rentals even after the booking was cancelled through no fault of their own.

What Is the VRBO Service Fee?

Any traveler who is booking through the VRBO site or Home Away sites will be responsible for paying a service fee. The purpose of the service fee is to cover the operating costs of the website for travelers as well as owners. According to VRBO, those costs include developing services and products, providing round the clock customer service and protecting secure transactions (though VRBO’s payment processor Yapstone has already taken a hit over claims that it failed to stop a data breach).

How Do I Pay the VRBO Service Fee?

Travelers are responsible for paying the service fee by credit card when paying for their rental. The service fee is only charged to the travelers’ card after the booking has been formally accepted by the property manager or owner.

The service fee is a percentage of the full amount of the reservation excluding refundable fees and taxes. The VRBO website states that the percentage rate can change from time to time.

Can an Owner Refund the Service Fee?

It’s VRBO’s fee, not the owner’s. The owner of the rental does not have the ability to waive the service fee or to discount the service fee. This service fee can only be refunded when the owner uses the Cancellation Refund feature and when the cancellation is requested within the terms of the owner’s cancellation policy.

Are Service Fees Ever Refunded if a Reservation Is Canceled?

If the traveler is the one who initiates a cancellation in accordance with the policy that provides for a full refund, any previously billed fees are allegedly refunded, according to the VRBO website. This includes payment processing, commissions and service fees. VRBO says the booking fee and service fees  are not refunded if the traveler cancels a reservation and a partial fund is issued.

A growing number of consumers are filing complaints that when the booking is canceled through no fault of their own that they are not receiving their service fee back. According to some travel experts, the VRBO service fee can add up to an additional nine percent on top of the total rental cost, depending on the rental agreement that existed before.

How Do I Know If I Was Wrongfully Refused A Service Fee Refund?

If you booked a vacation property using VRBO, VacationRentals.com or Home Away during the last three years and were not reimbursed the service fee even if the owner or manager cancelled the reservation or if it turned out to be fraudulent, you may benefit from participating in a class action lawsuit investigation. Consumer rights attorneys can help you figure out if a refund was wrongly withheld.

Join a Free Vacation Rental Service Fee Class Action Lawsuit Investigation

If you were not reimbursed the service fee after your booking on HomeAway.com, VRBO or VacationRentals.com was cancelled due to no fault of your own, you may benefit from participating in this free class action lawsuit investigation.

Learn More

This article is not legal advice. It is presented
for informational purposes only.

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4 thoughts onIs the VRBO Service Fee Refundable?

  1. Stephen Gregory says:

    A VRBO reservation cancelled far in advance of the cancellation window is attempting to withhold $100+ in “credit card processing fees,” despite advertising “100% refund.” The owner’s justification is a rental agreement, supposedly separate from VRBO, that I never signed (precislely because it is an additional contract sent after confirming a reservation on VRBO’s terms!). This is fraud and I would like to join the class action

  2. Vicki Brunson says:

    Booked a reservation through VRBO and no where in the breakdown of the fees for the unit was there disclosed a $195 fee to VRBO.. This should be illegal. Ive been using VRBO for many years and this is the first time this has happened. Be Aware!!

  3. Ria saini says:

    Same issue, the villa cancelled and they’re refusing to refund the fee! Do not use this platform! It is a fraud. They have fake houses that cancel the place and then keep your fee

  4. Dana Lunsford says:

    I have been charged 3 times now!! 3 different amounts. I canceled as soon as i found out they had booked the wrong villa and have seen no refunds!!

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