@Tracy-Lucente
Hi! That’s how it currently works.
I can’t speak for HomeAway or what changes they’ll make down the road, but currently the traveler pays the Service Fee when the booking is initiated on the HomeAway family website.
An inquiry that is converted to a booking later, but was submitted on the HomeAway family website and booked later in the software (and not on the HA website) currently does not have this fee applied.
Of course, the protections and benefits that come with the Service Fee (namely, the “Book with Confidence Guarantee”) also would not be applicable. More on that: https://help.homeaway.com/articles/What-is-the-service-fee-and-how-does-it-work