Hello all - great news to share today! Vrbo Messaging is now live as a Public Beta! You can see messages in OwnerRez before the guest books and reply and also after a booking comes in.
Bonus: included also is the creation of inquiries in OwnerRez (without the need to use Email parsing). So you can reply to inquiry messages but also view Inquiry details if they submitted an inquiry for your property. If you use Vrbo email inquiry parsing, it will match with that and only create 1 inquiry in OwnerRez.
We took an extra few weeks because we wanted to be able to add in the bonus. Thanks for your patience! Enjoy!
It's a bit complicated under the covers, but this will generally work for all new bookings from June 7. In some cases it will also send to pre-existing bookings, but I would not count on this yet. Until we import historical messages from Vrbo it will be hit or miss.
We recommend keeping your email triggers in place for Vrbo bookings alongside any new Vrbo channel triggers you'd like to add for the present. We will announce in our change log and blog when historical messages have been pulled in, at which point you can more safely rely on Vrbo messages only.
Hello all - we have some exciting news to share on a Friday. Vrbo is handing us the keys to begin development on native Vrbo Messaging! It will take us some time but we have prioritized this to the top and have kicked off development! Please know we'll get it ready and released as soon as we can. Thanks for everyone's patience and understanding.
Oh man. Can’t wait. Tired of having guest reaching about their door codes. Since it is the only communication that goes to their email instead of their message box so they don’t look for it by email.
Will you have to be API integrated with VRBO for it to work? there are a few of us that do not want to API integrate with VRBO for various reasons and that would leave us out.
Will you have to be API integrated with VRBO for it to work? there are a few of us that do not want to API integrate with VRBO for various reasons and that would leave us out.
Hello - yes, Vrbo messaging will require being API integrated. This is based on Vrbo limitations. Vrbo is planning a method where they can stay merchant of record so maybe someday that can help ease the switch to going API. We don't know if it will be this year or not. Possibly not, with all their API work on Messaging and Reviews happening this year.
Thank you for letting me know! I would rather keep them as the merchant of record, the owner and I only want our direct bookings to go through us. So I'm looking forward to when there's at least a choice to only API integrate for messaging only.
Why would you want VRBO (or anyone else) to be the merchant of record? I don't see any benefit to giving them the financial control, except simpler administration, where VRBO and AirBnB is the same vs direct bookings.
Also, I think you save on the VRBO fees by managing the booking financials yourselft, and OR does a great job enabling that.
Currently I manage my own 3 listings, only, and don't manage others' listings, so my perspective is based on my experience.
The owner doesn't want the added administration, he prefers to be set up like Airbnb, where they handle the taxes and funds, I like it as well, we have it all set up the way we want other than the messaging issues with VRBO. He only wants the direct bookings coming through us. it's just easier for both of us this way.
We've done some checking, and believe that you are mistaken about Vrbo not charging the 3% payment processing fee on the tax portion of your bookings - on the examples we've examined, they did. In addition, they also charged you a 3% fee for the guest's booking fee, which isn't even money you receive. If you are doing your own payment processing, Vrbo does not charge any payment processing fees at all. Of course you do have to pay your own payment processor fees, but in most cases it is possible to find an account provider with a lower rate - particularly if you are doing so much business as you describe, I'd think you could find something in the 2% range. This would save a great deal.
You are correct that most processors do not refund their processing fees in the event of a cancellation... but, not all. Again, with such a large volume that may be possible to get in negotiations, which is why we support such a large variety of processors.
In my experience you need to watch processors like a hawk and rebid your account every year.
I would like to see our community discuss this and say what their volume and average ticket is and what their processor is charging.
We should be able to get to the low 2% range given our large average ticket.
What you're suggesting—processing costs near 2%—would be incredible. Unfortunately, as a 30-year veteran in the payments industry, I can share that's not how it works.
To give you and others a bit of knowledge to help ease concerns and maybe even save some time and money, there are some essential things to know:
I'm going to give you some very in-depth information, but just in case this is more than you care to read, here's the TL;DR:
Choose a representative of a well-regarded company OVER saving a few bucks on rates
Never, ever show your statements to another provider until they have provided you with detailed pricing IN WRITING
If you like your current company, allow them to review your pricing before you switch
Your rates with any company are NEVER GUARANTEED, no matter what the rep says
Avoid term contracts and cancellation fees—and be sure that's in writing. Look for a section in the agreement titled "Terms of Termination."
Never choose flat rate pricing. Always choose a cost-plus (interchange plus) pricing structure.
The real meat for those who care to know...
Every processor works off of the exact same cost. It's called interchange. It doesn't matter how big or small the company is, whether they're "direct with Visa" (as some like to proclaim), whether they're a bank, or quite literally any other variable. The card brands set the costs of every single transaction processed. There could be some minor variables, but nothing that would affect their business so much that it would affect your pricing. You can go to any card brand's website and lookup interchange. Or just google it. Current interchange ranges from .05% + $0.15 - 3.05% + $0.00. (this is put simply and there are other extreme variables)
The costs to processor vary for *every single transaction processed* based on a handful of factors: The type of card processed (credit, debit, type of rewards), the method the card was processed (swiped, keyed), the type of business (retail, restaurant, grocery), the data included with the transaction (chip, address, zip, Level II/III), and in some instances the size of the transaction (B2B with a $30K ticket, QSR $8 ticket). There are quite literally several hundred "buckets" that every transaction could fall into, but every transaction will only fall into ONE bucket. That bucket has a percentage rate and transaction cost associated with it.
So what determines the cost you pay, and how do you keep your costs to a minimum?
Knowing that every processor works off of the same cost, the question is a) who's willing to make the least amount of profit off your business and b) is that the kind of company you want to do business with? Are they coming in with a line of BS saying -- we could save you hundreds of dollars on your mere $5000/mo in processing... That's virtually impossible anymore. If it seems too good, it probably is.
When you're shopping providers, NEVER EVER EVER provide your statement. The only reason someone wants your statement is to see what you're currently paying and then attempt to save you just enough money to switch. That creates a lose-lose scenario. Maybe you could have saved more if they had blind-quoted you—your average ticket, volume, and all that is BS. I do not need to know those things to quote you a price. Might I provide better pricing for someone who does $100k/mo vs. $5k/mo... maybe. Getting a clear WRITTEN quote in advance is key. THEN, and only then, you could provide them your statements if you'd like so they can show you what those numbers would translate to in savings.
But the other thing to consider is, ARE YOU HAPPY with your current provider? Because if you're happy—they answer the phone, they deposit your funds on time, you understand your statements, and they integrate with your solutions... who gives a crap if you can save $20/mo. If a merchant would switch to me because I could save them $20/mo... I don't want them as a client because that means they'll switch to someone else for $20. There has to be a bigger reason. Plus... if a merchant is worried about $20/mo—they have bigger problems. AND... how many people do you know that have gotten rich off of saving money?
And even if you do switch to save a few bucks, I hate to burst your bubble, but those rates are not guaranteed. They might tell you (and probably not) that there is a three-year contract, but all that means is you are locked into doing business with them for three years or you'll face steep penalties if you leave. That contract in no way guarantees your rates. They can change your entire fee structure at any time with 30 days' notice, and you're screwed.
SIDE NOTE: That is precisely one of the things I love about OR. They are payment processor agnostic. They're not forcing you to use their processing solution—which you would NEVER want to do. Because if you choose a business management solution or point of sale solution that is only certified to work with one processor—not if, but when they start jacking up your fees, you're left to decide between the lesser of two evils—being stuck paying higher rates or the inconveniences of setting up a new system. Both suck—so always choose a solution that does not force you to choose their 'preferred partner.'
Definitely do keep an eye on your rates from year to year. Many processors put a little notice at the bottom of your statement (that you never read), often in November or December (most businesses' busiest season), that they're charging a 'one time' (until next year) annual fee — or that they're raising rates. Now, interchange fees (the cost we all pay to process) do get evaluated by the card brands, generally every April and October. They might introduce new buckets or change the fees for existing ones. I recommend that twice each year (at minimum), you identify your effective rate and compare it to the SAME MONTH the year prior. To determine your effective rate, you take the fees you paid divided by the volume you processed. Assuming your volume fluctuates each month, your effective rate will as well. I'll give you a very simple example.
If your rates are creeping up and you're really happy with the company, your representative, etc., ask them to evaluate your pricing. But don't be 'that guy' who switches processors because some clown claims they can save you a few bucks. Remember, your pricing is not guaranteed anywhere, and *MOST* of the people in this industry have been in it for less than a handful of years, have no idea what they're doing, have zero control over their client's well-being or pricing, and are just peddling words and empty promises. Moral: when you find a company you love, do whatever you can to keep the relationship because they can be tough to find.
If you decide to shop around and even moderately like your current processor—if you can say to yourself, "they've been fine" or "I haven't had any issues," and the new company is not solving any other problems for you beyond price, tell your existing processor you're shopping around. You would like to know if they can lower your costs. If they ask to see other quotes, tell them you'll share your other quotes after they offer you the best pricing they have available.
Ensure you properly process transactions so that every transaction falls into the lowest-priced bucket. For example, if you are keying in transactions, be sure to pass along the address, zip code, and CVV code. Not including any of these can increase your cost by half a percent or more. If you can swipe/chip/tap transactions, do that instead of keying them in. This can save you up to one percent or more.
Lastly, (this is the big one) ensure your pricing structure is what's called "interchange plus" or "cost plus" pricing. This means you are paying actual wholesale processing fees plus a clearly defined markup. That markup is the processors profit—how they cover their expenses, pay employees, and take an occasional vacation. What you want to avoid at all costs is a flat rate pricing structure (a la Stripe, Square, etc.). Depending on volume, a fair markup is around 0.25%. So knowing that some transactions only cost .05% + a markup of .25% (.30% total) —why in the world would you want to pay 2.75%+ with someone like Stripe? This doesn't actually happen, but if your car only requires regular unleaded gas, and you pull into a gas station that is charging one price for all three grades of gas, but it's $0.20 higher per gallon than the gas station across the street... which station would you choose?
I know this is a LOT of information, but I hope it's helpful for someone interested in understanding how this industry works and how to keep your costs down. Feel free to ask any questions. I'd be happy to be of support.
