Vrbo is rolling out sponsored listings globally, Expedia Group announced. The wider release follows a pilot period with nine partners, including AvantStay and Vacation Rental Collective.
The product is a “pay-per-booked-night” advertising solution where partners are placed at the top of relevant Vrbo search results.
Sponsored listings have been at the top of Expedia Group's "wish list" for Vrbo for a while, Tim Rosolio, VP of vacation rental partnerships at Expedia Group, told PhocusWire.
"Once Vrbo replatformed, it gave us the foundation we were waiting for to build better tech through the lens of a proper ecommerce tech stack," Rosolio said. "As soon as we had the green light, we quickly started discovery work, followed by an extensive pilot program, and launched faster than we were ever able to do prior to replatforming."
The pilot included small and large businesses, which took part in the test for about six months, according to Rosolio.
"Pilot partners tested campaign building in various stages, as we wanted to ensure it was a productive product while maintaining the same level of conversion and traveler experience standards," Rosolio said.
Now, sponsored listings are available to all partners.
Other platforms such as Booking.com have similar sponsored listing features for partner properties. Airbnb has not launched a similar feature yet but was testing a pay-to-play feature earlier this year with select hosts, according to a blog post from PriceLabs.
Rosolio said that in some ways, Vrbo is catching up on tools that have existed previously in the industry, but the company is "ahead of the curve" in other ways. He noted that being a part of Expedia Group is a particular strength.
"The more we lean into what that unlocks, the more edge we will have against our competitors. For example, leaning into our association with Expedia to include Vrbo listings in their packages. Another example is leveraging our already-established travel media network to launch Vrbo Sponsored Listings, something I’m proud our team was able to execute faster than some of our competitors. This is only the beginning."
Products for the 'big leagues'
Sponsored listings’ rollout comes amid a suite of product announcements for Vrbo and Escapia, its property management software company. Some products are live already, with others launching through 2027.
Vrbo properties will soon be bookable as part of an Expedia package for comprehensive booking. Several of the platform's new and upcoming features are also reminiscent of hotel operations, including same-day bookings, non-refundable rates and the ability to send welcome guides. Two new flexible cancellation policies are live as well, giving partners the option to offer a refund five days before check-in or one day before check-in.
A host protection program to address chargebacks, property damage and income loss from cancellations caused by guest-inflicted damage is also coming soon, Expedia Group said.
These hotel-like features come as vacation rentals have entered the "big leagues," as STRs aren't necessarily considered an alternative category in accommodations anymore, Rosolio said. As supply has risen, differentiation is important, and travelers expect more in terms of cleanliness and responsiveness.
"They’re demanding the same consistency of hotels but with all the things that make vacation rentals unique," he continued. "Our job is to build technology that makes it easier for our partners to deliver that."
As for Escapia, the platform was updated with a modernized reservation grid and improvements to optimize distribution. Vrbo Payments, which facilitates payment acceptance through third-party providers, is also being piloted on the platform.
Phocuswright's Travel Marketing AI Summit London
Join Phocuswright in London on Sept. 8 to hear from Daniel Shin Un Kang, head of organic and agentic search for Expedia Group, and learn more about the intersection of travel, marketing and AI.