What Happened to Airbnb and Vrbo?

I recently went on a weekend trip to an adorable town in Florida called Mt. Dora.

It’s a few hours away, and we wanted to spend half the day buying more fruit trees and perennial edible plants at A Natural Farm there. And figured we’d make a weekend of it.

I chose a place to rent listed on Vrbo that was $119 per night, for two nights, and at checkout, I was paying $482.

Take a look at that math a little more closely. I paid more in “fees,” than my two-night stay cost.

So, the game here, played by both of the “monopolistic companies with no other competitors” is:

Let property owners show a low price, to get attention. Then blast people with “fees” that more than double their cost.

Don’t you think of a “fee” as being something like 1% to 15% – not 100%+?

Or does the home owner actually get just $119 per night, and Vrbo and the cleaning crew get just as much? Airbnb is often called Airbnbust lately, and I’ve read that both companies have gotten clobbered by fewer people having the money to book vacation rentals.

So I hadn’t used Vrbo much, but I’d used Airbnb a lot. Here’s why I’ve sworn off Airbnb:

This past August, I went to Utah to celebrate all four of my kids’ birthdays that happen in that same 3-week period. (I know, it’s weird. Long story.)

I booked a place on Airbnb where the amenities were great, but the host literally used the door code to let herself into our unit, when we were a little late on the 10 am checkout.

She’d messaged me the day before saying we needed to be out by 10 am. Keep in mind we stayed there for THREE WEEKS, and I told her we visit Utah for weeks at a time, twice a year.

Most people would consider us a valuable customer with future potential? Seems like being super rigid about a weirdly early checkout isn’t a great idea. But that’s what happened.

There were several marketing pieces inside the apartment trying to get us to book directly with them next time (one assumes that’s so Airbnb doesn’t get a lot of the money).

And we paid 250% of what the long-term residents’ rent was, in the complex. Fine, it’s a short-term rental, I get it.

But I wrote back asking if we could have an 11 am checkout. She replied with a link demanding I pay her $150 for that privilege.

I did not answer; I was working. Then she wrote again demanding we be out by 10 am. I didn’t answer that, either.

The next morning, at 10:15, she let herself into the apartment and yelled “HOUSEKEEPING!”

Anyway we were zipping up our suitcases, and went downstairs to put suitcases in the car and leave. She was in her car next to ours, either taking photos of us or filming us, not sure which.

In addition to feeling a little bullied and surveilled–the toilet flushed only sometimes, nails poked out of the super-cheap, worn-out carpets, and all the furniture was old and uncomfortable.

But, I gave the place a 3-star review afterwards.

I said far less about it than what I’ve written above. They give you very few characters to work with. I didn’t even mention the box of bandaids we’d had to buy of tiny nails we stepped on every day. I wrote just a little of what I’ve just told you–including that the gym and pool were excellent.

Airbnb refused to publish my review. Ah. So I think now I know why I’m always so amazed, when I go on that platform and EVERY piece of property is described as fabulous in virtually every way, and every host is responsive and everyone loved working with them.

It’s because if you submit a review they don’t like, they just won’t publish it.

Anyway, this whole concept is way outside the scope of the topics I normally talk about. But I’ve been fascinated by (and nervous about) the biggest real estate company in the world not actually owning any real estate (Airbnb) gobbling up market share, as people began “revenge spending” after the lockdowns, with their stimulus money.

And after these two recent experiences, I feel like I have some clues or theories about things I’ve wondered about. It’s a little scammy to say a room is $119/night when it’s really going to cost $241/night.

And it’s a bit scammy to show reviews, when you’ve refused to publish any that aren’t stellar.

My neighbors and I are fascinated by a house that was built on our street and completed last year, where the description of the place online doesn’t match the actual experience there.

It’s the subject of much gossip in the ‘hood because it’s one of the strangest houses I’ve ever seen. For instance, the front door is on the back of the house. And it’s a BEACH house with no “outdoor living”–not the smallest deck, or patio, just nothing.

I have to wonder, do people complain about the place, but potential beach-vacation seekers never see the complaints, because Airbnb just won’t publish them?

It was booked every weekend but two, all summer. Even with many industry reports saying this was a dreadful summer for Airbnb, the airline industry, and tourism in general.

And I write all this to ask:

What’s been YOUR experience with either of the “duopoly?”

(I might have just made that word up, but have you noticed how there are TWO, when an industry gets disrupted and something very new becomes super popular? A monopoly, only it’s not, because you have TWO choices. Duopoly?

And you can hardly tell one from the other. Vrbo and Airbnb. Lyft and Uber. Costco and Sam’s Club.)

I would love to hear if you’ve had any similar experiences (or different!) with the “biggest real estate companies in the world!” Airbnb and Vrbo.

Thank you for your support of my Substack blog! And any commentary you want to share. This one’s a little different, back to regularly scheduled topics, next!