While founded in Colorado, VRBO revolutionized vacation rentals after establishing a major operational presence in Austin. Created in 1995 by David Clouse in Aurora, Colorado, as a platform for his ski condo, VRBO grew by connecting property owners directly with travelers.
The company thrived after HomeAway’s acquisition, and later Expedia’s, transforming from a simple listing service into a global vacation rental powerhouse. Its journey from ski slopes to tech hub showcases a true travel industry disruption.
The Colorado Roots of a Vacation Rental Giant
While many travelers now take vacation rental platforms for granted, VRBO’s humble beginnings can be traced to a single ski condo in Breckenridge, Colorado. In 1995, David Clouse created this Colorado-based innovation after experiencing the challenges of renting his own mountain property. He developed a simple platform connecting property owners directly with travelers seeking alternatives to traditional hotels.
VRBO’s early regional focus on Colorado ski resorts proved the perfect testing ground for the concept. The platform quickly gained popularity among mountain property owners who wanted more control over their rentals without middlemen.
By 2006, the website had grown to over 65,000 rental listings, adding hundreds of new properties monthly. This pioneering approach transformed how vacationers experienced Colorado’s resort destinations before expanding nationally.
Though later acquired by HomeAway and relocated to Texas headquarters, VRBO’s Colorado origins remain a key part of its identity in the vacation rental marketplace.
From Ski Condo to Digital Marketplace: VRBO’s Early Days
Innovation often springs from personal need, as demonstrated by David Clouse’s creation of VRBO in 1995. The programmer from Aurora, Colorado, designed a straightforward platform to rent out his Breckenridge Ski Resort condo, establishing a direct owner-to-renter connection that would influence vacation travel for decades.
Clouse’s digital listing strategy proved remarkably forward-thinking. By charging homeowners an annual subscription fee, VRBOoffered property owners more control and flexibility compared to traditional management companies. This model resonated strongly with vacation homeowners seeking direct renter interaction.
VRBO capitalized on early mover advantages during the internet’s commercial emergence. With few competing platforms, the company expanded steadily until its 2006 acquisition by HomeAway, which accelerated its entry into global markets. The timing was ideal—as consumer trust in online transactions grew, VRBO was positioned to reshape vacation rentals.
Disrupting Traditional Property Management Models
VRBO disrupted decades of established vacation rental practices by empowering owners to bypass traditional property management companies and their steep commissions, often as high as 30%. Owners could now control their own bookings, maintenance, and guest communication directly through the platform.
This shift forced many property managers to rethink their models as owners embraced self-management, delivering more personalized guest experiences. In 2024, VRBO reintroduced key features to help travelers make better booking decisions, including dateless searches and side-by-side property comparisons.
The platform’s expanded inventory and improved property quality created new competitive pressures, while evolving regulations required more sophisticated compliance tools. Drawing inspiration from customer-first companies like H-E-B, VRBO helped move the vacation rental market toward flexibility and direct owner-guest relationships.
HomeAway Acquisition: A New Chapter in Austin
The landmark 2006 acquisition of VRBO by HomeAway marked the start of its Texas chapter. Headquartered in Austin, HomeAway integrated VRBO into its growing network of vacation rental brands.
A decade later, in 2015, Expedia Group announced the acquisition of HomeAway in a $3.9 billion deal—completed in the first quarter of 2016—at $38.31 per share. Austin’s operations remained central to the brand while tapping into the city’s rich tech talent pool.
The integration allowed VRBO to benefit from HomeAway’s infrastructure and Expedia’s global reach, expanding listings to over 15 countries. The move positioned Expedia to capture a share of the rapidly growing alternative accommodations market, valued at roughly $100 billion at the time.
Building the Ultimate Vacation Rental Platform
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While Expedia’s acquisition brought significant resources, VRBO’s foundation was laid decades earlier. Since 1995, it pioneered owner-friendly tools that gave homeowners control over pricing, availability, and direct communication with travelers.
This eliminated the need for intermediaries and built trust within the marketplace. The intuitive owner dashboard still provides hosts with detailed control over their listings. Similar to how Round Rock benefited from the Dell headquarters relocation, VRBO’s model generated new income opportunities for homeowners in popular travel destinations.
The Expedia Era: Global Expansion and Resources
Under Expedia’s leadership after 2016, VRBO evolved from a listing service into a fully bookable, transactional platform. In 2019, HomeAway consolidated its brands under the Vrbo name, aligning its global presence.
The consolidation leveraged Expedia’s advanced marketing strategies to attract international travelers. With access to Expedia’s extensive traveler base and technology, VRBO accelerated its global growth and improved booking systems at a scale previously unattainable.
Ver-boh: The Strategic Rebranding Decision
In 2019, VRBO announced its rebrand to “Vrbo,” formally adopting the “ver-boh” pronunciation already common among customers.
The lowercase styling transformed the acronym into a friendly, approachable name suited for global markets. The refreshed logo with intertwined stripes symbolized travel diversity and togetherness. Research showed that “ver-boh” was easier to remember and pronounce internationally.
The pronunciation change was promoted through TV and digital campaigns, alongside the introduction of collaborative Trip Boards, enhancing the family-oriented vacation planning experience.
Competing in the Sharing Economy Landscape
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Vrbo’s brand evolution positioned it to compete in the sharing economy alongside giants like Airbnb and Booking.com. With around 21% of the U.S. vacation rental market, Vrbo has differentiated itself by focusing on whole-home, family-oriented rentals and longer stays.
While Vrbo leads in its domestic niche, international market share remains small—about 2% in Europe compared to Airbnb’s 40% and Booking.com’s 48%. Partnerships, such as with Abritel in France, aim to grow overseas presence. However, shifts toward shorter stays have recently influenced performance trends, contrasting with its long-stay marketing focus.
VRBO’s Lasting Legacy on Travel Accommodations
Since 1995, VRBO has redefined how travelers book accommodations by connecting them directly with property owners. This opened access to unique stays with more space and amenities, often at competitive rates.
The model created income opportunities for homeowners but also sparked local regulatory debates in many cities. Following its acquisitions, VRBO now integrates with Expedia’s vacation package offerings, providing broader booking capabilities.
Today, VRBO lists properties in over 190 countries, continuing to influence the vacation rental industry with its safety, verification, and communication standards. Its legacy endures in every direct-owner vacation rental booked worldwide.
