Vrbo in Major Reversal on Guest Refund Policies

Vrbo last month reversed a longstanding policy on guest refunds and host cancellations, tipping the benefits toward guests and away from hosts when there are major travel disruptions.

Under the new rules, when Vrbo activates its Extenuating Circumstances Policy during a disruption, hosts must refund guests regardless of their own cancellation policies. Vrbo refunds the traveler service fee the guest paid when booking the stay.

"The financial impact of this policy will be felt entirely by hosts," said Rena Pacheco-Theard, co-founder and CEO of luxury vacation rental platform Boutiq, which uses Vrbo as one of its sales channels.

Pacheco-Theard noted Vrbo doesn't take the financial risk, including paying for mortgages, landscaping and utilities. "Rather than travelers being responsible for purchasing trip insurance to protect against natural disasters and abnormal weather events or declared health emergencies, hosts now foot the bill with no compensation,"