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Wind Slither
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Since 04 Mar 2005
2575 Posts
The 503
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davidguetta402
Since 17 Jan 2019
1 Posts
New Member
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Thu Jan 17, 19 2:22 am Re: OT: SAY NO to VRBO's new 9% "service" fee |
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Although VRBO and Homeaway are the same company
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PennySaviour |
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lewmt
Since 04 Aug 2010
182 Posts
MT
Stoked
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Thu Jan 17, 19 8:17 am |
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And airbnb has their stupid anti-Israel crap happening. |
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Wind Slither
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Since 04 Mar 2005
2575 Posts
The 503
METAL
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Thu Jan 17, 19 8:19 am Re: OT: SAY NO to VRBO's new 9% "service" fee |
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davidguetta402 wrote: |
Although VRBO and Homeaway are the same company
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David, if I indicated otherwise I didn't mean to, but at least someone responded to my post.
VRBO started out great. Like a Craig's List for vacation rentals. Then they got bought by HomeAway. But the TRUE EVIL started in 2015 when Expedia bought HomeAway.
Since then the gouging of owners and guests is truly remarkable. In their latest act of greed, they now insist on withholding state and city taxes from our guests. They are collecting taxes on their own "service fees" and cleaning fees which is incorrect.
10 years ago, if you googled "Oregon coast vacation rental" you got pages of local management companies back. Now all you will get is VRBO, VaCasa, and AirB&B. Of the 3, AirB&B is only slightly less evil. These guys have taken over and they know it. There's no real alternative if you want to maximize your bookings.
If guests come to us wanting to book around VRBO to avoid the fees we accommodate them even though VRBO threatens to reduce our ranking score and/or pull your listing if you do this. I recommend if you find a house you want to rent on VRBO to ask the owner to deal with them directly. |
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lewmt
Since 04 Aug 2010
182 Posts
MT
Stoked
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Thu Jan 17, 19 8:24 am |
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I'm finding more & more rental owners willing to book around those businesses & good for them! I've found 2 places in OBX I love & have gotten to know the owners & its so much nicer to deal directly anyway. The key is finding venues to get your place noticed if you're an owner & that's where the behemoths have done such an amazing job of capturing the marketplace.
It seems like they are on the verge of overplaying their hands opening the door to new competition. |
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SalmonSlayer
Since 27 Nov 2005
648 Posts
Addicted
CGKA Member
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Thu Jan 17, 19 9:11 am |
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VRBO doesn't "gouge" customers. They are free to set fees and change fees. Potential customers decide if they want to pay the fee or find an alternative.
Changing their fees is no more greedy or evil than you asking for a raise. |
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Nak
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Since 19 May 2005
4203 Posts
Camas
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Thu Jan 17, 19 10:24 am |
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SalmonSlayer wrote: | VRBO doesn't "gouge" customers.
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It seems to me that the current situation pretty much fits the definition of "Gouging".
Price Gouging: The term is not in widespread use in mainstream economic theory, but is sometimes used to refer to practices of a coercive monopoly which raises prices above the market rate that would otherwise prevail in a competitive environment.
http://www.jewishworldreview.com/cols/kudlow061400.asp Jewishworldreview.com. 2000-06-14. |
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user124
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Since 02 Aug 2012
390 Posts
Portland
Obsessed
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Thu Jan 17, 19 10:25 am VRBO |
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I don't own any rental properties, but I'm a frequent customer and renter. I've moved away from VRBO/Homeaway when I can for the reasons listed above. What I typically will do when possible is find a local vacation property manager with several properties that look appealing. Usually you can get a better price and service this way anyway. |
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jeffwestco
Since 21 Jan 2014
23 Posts
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Thu Jan 17, 19 10:35 am |
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SalmonSlayer wrote: | VRBO doesn't "gouge" customers. They are free to set fees and change fees. Potential customers decide if they want to pay the fee or find an alternative.
Changing their fees is no more greedy or evil than you asking for a raise. |
Yes -- businesses are entitled to change their fees -- however -- they (VRBO/HomeAway) changed their fee structures and listing order algorithms to down list any owner that doesn't use their calendar and booking system (only way around the fee) They began charging these fees to renters on top of what they charge owners often in the middle of annual contracts with owners...all while claiming these fees are for a secure booking experience and to offer 24/7 support. (it is not...if you have a problem they do nothing.) Adding a 9% fee for absolutely no value I see as gouging. They also try to make communication between owners and renters difficult.
I've switched almost entirely to using HomeEscape instead...VRBO SUCKS!!! |
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lewmt
Since 04 Aug 2010
182 Posts
MT
Stoked
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Thu Jan 17, 19 10:52 am |
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Its hard to say what VRBO's operating costs are, whether the 9% represents a gouging fee or not, or if its just the company checking the market to see what will be tolerated to enhance their own bottom line. It's all fair. However, its also fair for the free market to work its own magic & some upstart interweb player come in & offer equivalent(or better) service at a better price. Its valuable to know publicly that VRBO is pushing the envelope of what their customers may be willing to tolerate. Again, just advocating for the free market to do what it does best. |
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SalmonSlayer
Since 27 Nov 2005
648 Posts
Addicted
CGKA Member
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Thu Jan 17, 19 1:29 pm |
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lewmt wrote: | It's all fair. However, its also fair for the free market to work its own magic & some upstart interweb player come in & offer equivalent(or better) service at a better price. Its valuable to know publicly that VRBO is pushing the envelope of what their customers may be willing to tolerate. Again, just advocating for the free market to do what it does best. |
I am not sure why this is so hard for so many to understand. It is a very organic process based on the free choice of individual entities. |
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Wind Slither
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Since 04 Mar 2005
2575 Posts
The 503
METAL
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Thu Jan 17, 19 3:50 pm |
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SalmonSlayer wrote: | VRBO doesn't "gouge" customers. They are free to set fees and change fees. Potential customers decide if they want to pay the fee or find an alternative. Changing their fees is no more greedy or evil than you asking for a raise. |
Best practice business is about the win-win. This will catch up with VRBO. They did their homework. They knew just how far they could turn the screws without losing business to competition.
If pkh were to start charging, where you gonna go, Kite Scoop? LOL
Hey, they gives me an idea, Phil, can you whip up a vacation rental website? ![Thumb's Up](images/smiles/icon_thump.gif) |
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cathy o.
Since 11 Aug 2014
82 Posts
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Wind Slither
![](images/avatars/31340135960512e0397b41.jpg)
Since 04 Mar 2005
2575 Posts
The 503
METAL
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Tue Jan 22, 19 8:46 am |
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Cathy, this appears to be a management service layered on top of any fees you pay directly to their "partners" (VRBO, AirB&B, etc.) to list on their sites.
So they take 10% for handling inquires, managing the dynamic pricing, etc.
BTW, "dynamic pricing" is VaCasa's big scam that is catching on. It's where they jack prices way WAY up for peak weekend and gouge the guests, and then charge almost nothing for your house to rent it during the slow times so that owners get wear and tear and they collect the same fees. |
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SalmonSlayer
Since 27 Nov 2005
648 Posts
Addicted
CGKA Member
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Tue Jan 22, 19 8:54 am |
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Wind Slither wrote: |
BTW, "dynamic pricing" is VaCasa's big scam that is catching on. It's where they jack prices way WAY up for peak weekend and gouge the guests, and then charge almost nothing for your house to rent it during the slow times so that owners get wear and tear and they collect the same fees. |
We need to stop pricing that takes advantage of incontrovertible principles like supply and demand ![Rolling Eyes](images/smiles/icon_rolleyes.gif) |
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Wind Slither
![](images/avatars/31340135960512e0397b41.jpg)
Since 04 Mar 2005
2575 Posts
The 503
METAL
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Tue Jan 22, 19 9:09 am |
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SalmonSlayer wrote: | Wind Slither wrote: |
BTW, "dynamic pricing" is VaCasa's big scam that is catching on. It's where they jack prices way WAY up for peak weekend and gouge the guests, and then charge almost nothing for your house to rent it during the slow times so that owners get wear and tear and they collect the same fees. |
We need to stop pricing that takes advantage of incontrovertible principles like supply and demand ![Rolling Eyes](images/smiles/icon_rolleyes.gif) |
Salmon, the thing is, as an owner, the peak pricing might be good, but the low period pricing where VaCasa still collects their minimum fee and keeps their housekeepers busy, while my house gets thrashed and I make squat is no advantage to me.
Not arguing these companies have a right to do these things, this thread is about "saying no" in a free market way. |
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Nak
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Since 19 May 2005
4203 Posts
Camas
XTreme Poster
CGKA Member
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Tue Jan 22, 19 11:25 am |
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Wind Slither wrote: |
Not arguing these companies have a right to do these things, this thread is about "saying no" in a free market way. |
![Thumb's Up](images/smiles/icon_thump.gif) |
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