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Vrbo's OneKey: A Hole in Rewards Redemption

Wesley ParkSaturday, Mar 1, 2025 11:22 pm ET
2min read

As a frequent traveler, I've always appreciated the value of loyalty programs. They offer a sense of security and reward for my continued patronage. However, I've recently encountered a peculiar issue with Vrbo's OneKey rewards program that has left me scratching my head. While I can earn rewards for my bookings, I can't seem to redeem them on most property manager listings. Let me explain.

Vrbo, one of the largest vacation rental platforms, introduced the OneKey loyalty program in 2023. This program allows travelers to earn and redeem rewards across expedia, Hotels.com, and Vrbo. The idea is simple: earn rewards for your bookings and use them on future stays. However, there's a catch.

The merchant of record restriction
Vrbo requires that property management companies be the merchant of record and handle their own payments. This means that, unlike individual hosts, property managers cannot accept OneKey rewards. As a result, I can't redeem my hard-earned rewards on most property manager listings.

Vrbo's solution
Vrbo is aware of this issue and is working on a solution. According to tim Rosolio, vice president of vacation rental partnerships at Expedia, the company will introduce an optional program for property managers this year. This program will enable Vrbo to be the merchant of record for their bookings, allowing customers to use their OneKey cash on those listings.

The potential benefits and drawbacks
While this new program has the potential to simplify operations for property managers, especially smaller ones, it also comes with its own set of challenges. Larger property managers may be reluctant to give up being the merchant of record, as it means Vrbo gets the ultimate say on issues like refunds and customer service. Additionally, property managers may face increased fees or other costs associated with Vrbo handling payments and facilitating OneKey cash usage.

The competitive landscape
The introduction of this new program could significantly impact the competitive landscape between Vrbo and other vacation rental platforms, such as Airbnb. By offering a comprehensive loyalty program, Vrbo can take market share from hotels and other rivals, including Airbnb. However, it remains to be seen how Airbnb and other competitors will respond to this new development.

In conclusion, while Vrbo's OneKey loyalty program offers a valuable rewards system for travelers, the current merchant of record restriction limits its overall value proposition. By introducing an optional program that enables Vrbo to handle payments and facilitate OneKey cash usage, the company can address this issue and attract more customers. However, property managers must weigh the potential benefits and drawbacks before opting in. As a traveler, I look forward to seeing how this situation unfolds and hope that Vrbo can find a solution that works for both travelers and property managers.

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03/02

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CorneredSponge
03/02
@Derrick Sure
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InevitableSwan7
03/02
Property managers might wanna hedge their bets here. The fee structure could sneak up on 'em.
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charon-the-boatman
03/02
Hope Vrbo's fix doesn't end up just being a cash grab for them. 🤔
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Fit-Possibility-1045
03/02
Property managers, watch out for fees hidden
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khasan14
03/02
@Fit-Possibility-1045 True, fees can sneak up.
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Jimmorz
03/02
OneKey's redemption issue feels like a major plot twist in the vacation rental drama. Who's got the script next?
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AIONisMINE
03/02
Hoping Vrbo's solution attracts more customers.
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Throwaway7131923
03/02
@AIONisMINE Do you think it'll boost their stock?
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Debbie
03/02

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_hiddenscout
03/02
@Debbie 💸
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Artistic_Studio2784
03/02
Vrbo's OneKey got potential but feels half-baked. Hope they smooth out the kinks before it's too late.
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EX-FFguy
03/02
Vrbo's OneKey got potential but needs tweaks.
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Blackhole1123
03/02
If Vrbo makes it right, $EXPE might see some tailwinds. Loyalty programs can be a game-changer.
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joaopedrosp
03/02
@Blackhole1123 Agreed, loyalty perks can pump stocks.
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MacaroniWithDaCheese
03/02
@Blackhole1123 Do you think EXPE will rally if Vrbo's changes boost bookings?
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