Is Vrbo Falling Behind? How AI Can Help You Stay Ahead
VRBO's performance so far this year -and how to use AI to adapt without feeling overwhelmed
Rental Scale-Up just released a sharp analysis of Vrbo’s Q1 2025 performance. While it didn’t make major headlines, the undercurrents are significant-especially if you manage a short-term rental, boutique hotel, or guest-focused lodging business.
Here’s what’s changing, why it matters, and how you can use AI to stay ahead (without tech overload).
Vrbo’s Q1 in a Nutshell: Not a Crash, But a Contraction
Growth? Yes-but not leading the pack.
Vrbo’s bookings grew only modestly in Q1, trailing behind Airbnb (+8% YoY) and Booking.com (+12% in alternative accommodations). The platform is feeling the effects of a U.S. travel slowdown more than its rivals.
Urban supply and shorter stays are winning.
A third of Vrbo’s growth came from multi-unit, urban properties-marking a shift away from its traditional whole-home, family-focused image. Shorter, high-turnover stays are becoming the new norm.
Too much reliance on U.S. travelers = risk.
With two-thirds of bookings coming from the U.S., Vrbo was hit hard by:
A 7% drop in international inbound travel
A 30% decline in Canadian bookings to the U.S.
Vrbo’s brand is fading in Expedia’s shadow.
Expedia Group now lumps Vrbo under its “B2C Lodging” category, with little mention of Vrbo in earnings calls. This could signal a long-term repositioning.
Loyalty perks cut = less guest retention.
Recent changes to One Key rewards mean fewer points for Vrbo guests compared to Expedia or Hotels.com, making repeat stays harder to incentivize.
Brand message vs. business model disconnect.
Vrbo still markets “private homes for families,” but its growth is now more Booking.com-like: quick-turn, urban stays.
So What Can You Do About It?
Let’s talk about how AI can help you navigate these shifts-not to replace your expertise, but to support and scale the parts of your business that matter most.
How AI Can Support You Right Now
1. Diversify Your Guest Base
AI Analytics: Use tools like AirDNA or Google Analytics 4 (GA4) to spot new guest trends and identify where your bookings are coming from (or not).
Personalized Marketing: Use AI-powered platforms (like Mailchimp’s AI tools) to segment your email list and craft messages that resonate with different guest profiles.
2. Audit and Optimize Across Channels
AI Review Summaries: Tools like ReviewPro or even ChatGPT can summarize guest feedback, helping you respond faster and spot recurring issues before they snowball.
Chatbots for Guest Support: Add a chatbot like Tidio or Myma.ai to your website or OTA listings to answer FAQs 24/7-even while you sleep.
3. Create Stronger Direct Booking Incentives
Dynamic Pricing: Platforms like PriceLabs or Beyond use AI to adjust your rates in real time, keeping you competitive and allowing you to reward direct bookers.
Automated Guest Outreach: Use AI to trigger personalized follow-ups and custom perks for repeat guests, increasing loyalty without manual effort.
4. Adapt Your Listings to Match Platform Trends
AI-Powered Copywriting: Noticing Vrbo favoring urban or high-turnover listings? Use AI (like ChatGPT or Jasper) to rewrite your descriptions and highlight the amenities guests are searching for.
Competitive Analysis: Tools like Transparent or Key Data can help you benchmark your inventory’s visibility and performance.
5. Monitor the Market Like a Pro
AI Dashboards: Use platforms like Wheelhouse or AirDNA MarketMinder to stay ahead of local market trends, competitor pricing, and guest sentiment.
Stay Alert for Platform Changes: Watch for updates from Expedia’s EXPLORE 25 event-any major Vrbo changes could impact your strategy for the rest of the year.
Not Ready to Dive into AI? Start Small:
Try a free trial of a dynamic pricing tool like PriceLabs or Beyond.
Add a basic chatbot (Tidio or Myma.ai) to your website.
Ask ChatGPT to summarize your recent reviews and suggest improvements.
Even small experiments can compound over time-helping you stay nimble no matter how the platforms shift.
🗣 Let’s Talk
How are you adjusting your Vrbo strategy right now?
Are you seeing shifts in your booking patterns? Have you experimented with AI tools-or are you still on the fence?
Leave a comment or reply-I’d love to hear how others are navigating this moment.
Sources: Rental Scale-Up, AirDNA, Expedia Group Q1 2025 Earnings, Transparent, PriceLabs, Beyond, ReviewPro