This paper proposes a new vacating room after encryption reversible data hiding scheme developed for color images. The proposed scheme uses standard exclusive-or encryption and inherits the main features of vacating room after encryption schemes, namely joint and separate methods for data embedding. The proposed scheme exploits both the correlation between neighboring pixels and the correlation between color channels by predicting the original pixel values on color channel differences. The experimental results show that the proposed scheme can eliminate the main drawback of the vacating room after encryption framework, namely the large embedding distortions.