Starting May 22, 2025, Vrbo will make a notable change to how travelers earn One Key rewards: Blue-tier members will no longer earn any OneKeyCash for bookings made on Vrbo, and Silver-tier members will earn only 1% back. Meanwhile, on Expedia and Hotels.com—Expedia Group’s other major consumer platforms—all members, including Blue-tier, continue to earn 2% back on eligible bookings, including short-term rentals.

This tier-based change applies to both Vrbo US and Vrbo UK, marking a synchronized shift in how the One Key program treats short-term rental bookings on Vrbo versus other Expedia Group brands.

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What This Means for Short-Term Rental Managers

For short-term rental managers whose properties are syndicated across Expedia Group’s platforms, this update could materially impact guest behavior. A traveler booking the same property could receive different rewards based solely on which site they use—2% on Expedia or Hotels.com, and potentially nothing on Vrbo.

In practical terms, that means:

• Guests may begin favoring Expedia or Hotels.com when booking vacation rentals, particularly if they’re Blue-tier or rewards-conscious.
  
• Vrbo-only listings may become less competitive for loyalty-driven travelers.
  
• Managers relying heavily on Vrbo may see shifts in booking flow if guests optimize for reward value.
  

While the exact impact on booking behavior remains to be seen, the change introduces a new layer of complexity into OTA strategy.

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Why Would Expedia Do This?

Expedia Group has not publicly explained the rationale behind this platform-specific tiering, but a few potential factors emerge:

1. Managing Reward Costs in a High-Value, Low-Frequency Environment

Vrbo guests tend to book higher-value stays but less frequently. That means even casual travelers—who would remain Blue-tier—could earn a large amount of OneKeyCash from just one holiday rental. Expedia may be looking to avoid over-rewarding infrequent, high-ticket bookings from travelers who don’t return to the platform regularly.

By contrast, Expedia and Hotels.com often serve travelers with more frequent, lower-value bookings (e.g., hotels and flights), where tiered rewards make more sense. The platform may be trying to better align reward spending with guest lifetime value.

2. Encouraging Cross-Platform Behavior

Another plausible interpretation is that Expedia Group is quietly nudging travelers to book vacation rentals via its multi-service platforms (Expedia.com and Hotels.com). These platforms are better suited to upsell flights, cars, and other add-ons—and give Expedia more data on user behavior.

This doesn’t necessarily mean Expedia is “undermining” Vrbo, but it could reflect a strategic rebalancing in how various brands are positioned within the group’s ecosystem.

3. Tiered Logic May Be Difficult to Implement Cross-Brand

It’s possible that there are technical or operational reasons for not applying tiered rewards to syndicated Vrbo listings shown on Expedia and Hotels.com. Managing reward rules based on listing origin while also maintaining user experience could introduce complexity. However, given Expedia Group’s infrastructure, this explanation seems less likely as the primary driver.

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What Managers Should Watch For

• Booking shifts by tier: Track whether bookings start to shift away from Vrbo among lower-tier travelers.
  
• Guest feedback: Pay attention to reviews or questions mentioning rewards—this could reveal growing awareness.
  
• Platform performance: Evaluate whether Expedia and Hotels.com begin outperforming Vrbo in syndication.
  

Short-term rental managers may also want to revisit their OTA distribution strategy. If you’re eligible for syndication and currently focused on Vrbo, it could be time to monitor guest behavior more closely and assess whether Expedia and Hotels.com become more impactful channels.

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Final Thoughts

This change is more than just a loyalty tweak. It suggests a shift in how Expedia Group prioritizes brands, guest value, and reward allocation within its ecosystem. For short-term rental managers, the key takeaway is clear: where your property is booked now affects not just exposure, but also the perceived value to loyalty-minded travelers.

In a competitive landscape where guest acquisition costs are rising and brand loyalty is hard to earn, even subtle shifts like these could ripple across booking behavior and revenue strategy.