Good morning from Skift. It’s Thursday, September 14. Here’s what you need to know about the business of travel today.
25.08.2023 - 14:39 / skift.com / Dennis Schaal / Rob Greyber
Just a little more than two months into his new role as CEO of U.S.-based property manager Vacasa, Rob Greyber detailed his priorities: Downplay acquisitions of vacation rental portfolios in favor of a more productive sales team and organic growth, and tackle longstanding customer support issues at the local level.
“The bulk of our home growth will come from these sales representatives and the individual approach,” Greyber told financial analysts Wednesday during Vacasa’s third quarter earnings call.
Chief financial officer Jamie Cohen said the company exceeded its spending forecasts related to buying local or regional property management companies so far in 2022, would “meaningfully” reduce that spend next year, and think hard before entering new markets.
As Skift reported in August, Vacasa’s introduction of Salesforce customer relationship management software during the second quarter was a nightmare, leading to myriad sales inefficiencies.
Greyber said the expected productivity gains from the technology are taking longer than planned to realize, and he appointed Craig Smith as chief commercial officer to optimize sales, and to spur sales team signings of individual homes in the de-emphasizing of portfolio acquisitions.
Coming into the third quarter, Cohen said Vacasa thought that its sales team productivity would be “a step higher” than before the implementation of the new customer relationship management software, but that hasn’t happened yet.
Vacasa previously forecast that it would increase its signings of new homes 30 percent in 2022, but lowered that outlook Wednesday to 20 percent.
For the third quarter, Vacasa’s adjusted earnings before interest, taxes, depreciation and amortization of $46 million was below previous guidance of $55 million to $60 million. Net income was $16 million on $412 million in revenue, a 25 percent jump compared with the year-earlier period. The revenue mark exceeded previous guidance of $385 million to $395 million.
Speaking of adjusted EBITDA coming in below expectations and cost overruns during the third quarter, Cohen said the company believes the issues are “fixable but not yet fixed.”
Greyber said he believes Vacasa’s commission-based business model and direct sales approach is the right business model for the long-term, but added that in the near term “we need to sharpen our focus and execution.”
He said the company needs to get more efficient in housekeeping, field operations and customer support at the local level.
Despite softer demand, officials pledged that Vacasa would be cash flow positive for full-year 2023.
In other news, Greyber said the company appointed Rachel Gonzalez, a former Starbucks general counsel, as a board observer, and would seek at
Good morning from Skift. It’s Thursday, September 14. Here’s what you need to know about the business of travel today.
Artificial intelligence has been a major discussion in travel over the last year, and that’s why the theme of the Skift Global Forum is Connection in the Age of AI.
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Good morning from Skift. It’s Wednesday, September 6. Here’s what you need to know about the business of travel today.
If you search for short-term rentals on Booking.com, Vrbo and, to a lesser extent, on Airbnb in New York City for stays after Tuesday’s deadline mandating that hosts be registered, you’ll still find numerous listings that seemingly flout the rules.
Good morning from Skift. It’s Tuesday, August 29. Here’s what you need to know about the business of travel today.
New York City’s Office of Special Enforcement has approved only 257 short-term rental host registrations — out of 3,250 applications — ahead of a September 5 enforcement deadline.
Just when travelers thought that travel disruptions seen earlier this year may be easing, in May 2023 the European Union plans to introduce new fingerprint and biometric checks at external borders for third-country nationals that could lead to significantly longer wait times.
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Vacasa Chief Commercial Officer Craig Smith left his post abruptly Monday just four months after taking the position, and TurnKey co-founder T.J. Clark replaced Smith in the role, Skift has learned.
The old boys network in online travel — yes, let’s call it what it is — has reunited again to accomplish a formidable goal that has frustrated numerous startups in the past. The aim is to disrupt online cruise booking.