Table of Contents
Overview of Major OTAs
A breakdown of commonly used online travel agencies and their pros and cons.Recommended Listing Platforms
Which OTAs do we recommend for most hosts and why?When You Need a Property Management System (PMS)
Why adding channels beyond Airbnb/Vrbo requires a dedicated PMS.OTA-Based Insurance & Host Protection
What protection each platform provides and where gaps exist.Using Damage Deposits to Reduce Risk
How deposits work and when they are recommended.Achieving Airbnb-Level Protection Across All Channels
What third-party insurance will you need to match or exceed AirCover?
1. Common OTAs – Pros & Cons
This section lists the major OTAs (Online Travel Agencies) hosts commonly use, and gives a quick pros/cons snapshot to help evaluate fit.
Here’s a summary of major OTAs you might encounter
OTA | Pros | Cons |
Has the largest audience, a strong brand, excellent host tools, and AirCover damage + liability protection. (Hostaway) | High competition; wide guest mix; fees vary by region. | |
Strong for whole-home, family, vacation markets; simpler fee structure. | Weaker built-in protection compared to Airbnb; smaller global reach. | |
Massive global traffic; strong in EU/Asia; high volume potential. | Often attracts price-driven guests; more operational issues; limited host damage protection. | |
Huge search visibility; PMS integrations; boosts direct-style traffic. | No built-in insurance; guest quality varies by booking source; requires PMS. | |
Strong mobile presence; popular with younger travelers; predictive pricing appeal. | Less established for STRs; frequent cancellations; inconsistent guest reliability. | |
Large travel audience; major brand; parent company of Vrbo. | Primarily hotel-focused; tools not as mature; mixed guest quality. | |
Curated, premium travel audience; strong guest standards. | Strict property requirements; slower onboarding; selective acceptance. |
Operational note: Listing across many OTAs multiplies complexity (pricing, availability sync, guest screening, communication). As the client success/operations team, this is relevant for us.
2. Our Recommended OTAs
Given our model (professional management, standard of guest quality, consistent operations across clients), we recommend focusing on Airbnb and Vrbo as the core channels due to guest quality, operational consistency, and insurance risk.
Our recommended mix:
Channel 1: Airbnb
Channel 2: Vrbo
Optional Channel 3: Direct-booking website (managed by us, or building your own)
Optional Channel 4: Booking.com. However, you will need to put processes in place for damage deposits, and you will require your own PMS (see section 5).
Any additional channels should be added only if you have the systems in place (see next section) and are willing to accept the incremental complexity.
3. Necessity of a Property Management System (PMS) When Expanding Channels
If you list on channels beyond Airbnb & Vrbo, you’ll need robust technology to manage:
Real-time availability across platforms (to avoid double-bookings)
Unified messaging, guest screening, cleaning/turnover tasks, and finances
Recommended PMS / channel-manager tools include:Hostaway
Hospitable
Guesty
Without a PMS, adding OTAs beyond the core two significantly increases operational risk.
At this point, Vacarya can only support Airbnb, VRBO, and Booking.com through our Hostaway system. Adding other platforms is not possible. If you want to add other OTA channels, you would need to secure your own PMS.
4. OTA Platform-Based Insurance / Protection
Here’s how major OTAs handle host protection.
Airbnb: Through its “AirCover for Hosts” program, Airbnb includes up to US $3 million Host Damage Protection plus US $1 million Host Liability Insurance for eligible stays. (Airbnb)
Vrbo: Offers liability insurance (approx. US $1 million) for hosts, but does not provide reliable built-in damage protection for guest-caused property damage. (Truvi)
Booking.com: Has a “Partner Liability Insurance” programme that covers up to US $1 million in liability for stays booked through its platform. But it does not provide automatic property-damage protection similar to Airbnb’s US$3 M damage cover. (admin.booking.com)
Other OTAs: Many do not publicly advertise host damage protection of the same level; you’ll need to investigate each platform carefully. (Hosthub)
Key takeaway: If you rely solely on the OTA's built-in protection, you’ll likely have gaps, especially for damage caused by guests or bookings made off-platform.
5. Taking Damage Deposits to Offset Reduced Protection on Certain OTAs
Some OTAs, such as Booking.com, provide limited or no property-damage protection for hosts. Because of this, many large-scale hosts mitigate risk by enforcing damage deposits (also called security deposits).
Why Damage Deposits Matter
Damage deposits create a layer of financial protection when:
An OTA does not include host damage protection (e.g., Booking.com)
A guest bypasses Airbnb/Vrbo protections through a direct booking
The host wants compensation for smaller or more frequent damages that fall below insurance deductibles
High-risk guest profiles are more common on a particular OTA (price-driven, low-friction booking channels)
Deposits shift part of the risk onto the guest and encourage more responsible behaviour.
How Damage Deposits Work Operationally
Most PMS platforms allow you to automate deposit collection and release for multi-channel listings.
Common methods:
Pre-authorization hold
The guest’s card is authorized for a fixed amount (ex., 300–500 USD).
Funds are not captured unless damage occurs.
Typically expires automatically after 7–30 days, depending on the bank/processor.
Collected deposit through EnsoConnect
The deposit amount is actually charged.
Requires manual or automated refunding post-stay.
Higher friction for guests, but offers stronger cashflow protection.
Best practice deposit amounts:
Standard apartment or 1-bedroom: 300–500 USD
Larger units: 500–1,000 USD
Luxury properties: 1,000+ USD
Amounts vary by unit type, occupancy, and risk profile.
Platform Differences
Airbnb: Airbnb now controls the deposit process; hosts cannot charge true deposits themselves, but Airbnb allows hosts to submit claims under AirCover.
Vrbo: Vrbo still supports host-set damage deposits; these can be automated via PMS tools.
Booking.com: No built-in protective system like AirCover.
Most professional hosts running on Booking.com require a deposit to offset the risk.Google VR, Hopper, HomeToGo: Since these are meta-search or low-friction channels, deposit collection via PMS is strongly recommended.
Benefits of Damage Deposits
Reduces reliance on OTA protection programs (especially when they don’t exist)
Discourages careless behaviour
Covers small-to-medium damages that insurance won’t cover
Closes the protection gap for OTAs without AirCover-like programs
Helps align Booking.com bookings with Airbnb-level risk tolerance
Limitations to Be Aware Of
Guests may perceive deposits as friction depending on their previous OTA experience
Some OTAs restrict communication about deposits until after booking
You need a PMS capable of automated, compliant payment handling
Deposits do not replace full insurance, especially for high-value or structural damage
When Deposits Are Strongly Recommended
Listing on Booking.com
Taking direct bookings (outside Airbnb/Vrbo protections)
High-occupancy units
Units in high-party-risk buildings or neighbourhoods
Units with premium furnishings or expensive amenities
6. Insurance Requirements to Match/Exceed Airbnb’s AirCover
Given that even the best platform insurance has limitations, here’s what you’ll want in your own insurance plan to achieve protection comparable (or superior) to Airbnb’s AirCover:
Coverage type | Suggested coverage | Notes |
Guest-caused property damage | At least US$3 million | Airbnb offers up to US $3 M (USD) Host Damage Protection. (Hosthub) |
Host liability insurance (guest injury/guest property damage) | At least US$1 million (or equivalent) | Airbnb covers this in its liability portion. (Airbnb) |
Business interruption/lost income | Equivalent to X months of revenue (depending on unit size) | Many host-specific insurers offer this. (Truvi) |
Multi-platform coverage | Policy must explicitly cover bookings across all channels (not just one OTA) | Very important if listing on multiple OTAs or via direct bookings. |
Guest screening & prevention tools (optional) | Not strictly insurance, but risk-reduction | Some newer products bundle guest screening + damage cover. (Truvi) |
Additional considerations:
Verify your standard homeowner/landlord insurance doesn’t exclude short-term rentals. Many do. (Investopedia)
Check deductibles, exclusions (e.g., intentional damage, pets, parties, acts of nature)
Ensure the policy covers your region (Canada / Alberta) and your unit type (entire-home, multi-unit)
Document your property condition (photos, receipts, etc) to support claims
Maintain consistent operational procedures (guest check-in/out, cleaning, damage deposits, house rules) — insurance is easier to claim when you have good documentation.
Closing Notes
Listing on more OTAs can increase exposure and bookings, but it also increases risk and operational complexity.
From our experience, focusing on Airbnb & Vrbo gives the best balance of guest quality + operational manageability under our management model.
Booking.com is becoming more valuable for properties in areas that attract international guests, as it is widely used outside of the USA.
Whether you extend beyond those, you must use a strong PMS to manage operations; secure a comprehensive insurance policy that covers all platforms and risk types, and maintain high guest-quality standards.
The built-in protection provided by OTAs is a helpful layer, but not sufficient by itself; you’ll need your own arrangement to be truly protected.