Vacasa's Reliance on Booking Sites

06.12.2023 - 04:37 / skift.com / Dennis Schaal / Srividya Kalyanaraman

Skift Analysis: Vacasa‘s debut into the public market in December 2021 had a significant impact on the short-term rental industry. Being one of the largest branded property managers in the U.S., Vacasa plays a crucial role in various aspects of the short-term rental sector and serves as an important indicator for the industry’s overall performance.

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But, its stock market performance has been highly disappointing with a staggering decline of 94%. This can be attributed to the company’s losses of $17 million in the past year and a projected slowdown in revenue growth. Given these circumstances, it is difficult to place blame solely on the broader market conditions.

Its sales and marketing strategy — at an average cost of 19% of revenue — is a critical piece of its business since it is so closely tied into the company’s distribution strategy. As Vacasa strives for profitability, is the company’s branded direct-to-consumer strategy paying off? 

Vacasa has established itself as a prominent brand within the industry. But Skift Research has found that the company continues to rely heavily on third-party booking platforms such as Airbnb for the majority of its sales. Undoubtedly, Vacasa’s management aspires to transition into a primarily first-party business model, aiming to secure the associated margin advantages. But how they will do it is the question. 

Vacasa is a Leader in Brand Building But Relies Too Much on Booking Sites – Skift Research

The Plano city council has once again delayed the voting on a proposed short-term rental registration ordinance. This ordinance would mandate that owners of short-term rental properties in Plano register their properties with the city by September 1st and comply with inspection requirements. Failure to do so would result in a $500 fine. The voting will now take place on August 14th.

Expedia’s Vacation Rental Search in Its AI Assistant Isn’t a Priority, writes Skift executive editor Dennis Schaal.

Expedia execs would readily admit that its ChatGPT-based virtual assistant is a tad clunky when looking to find and book vacation rentals (and hotels, as well.) In fact, as the company tests what’s useful for travelers using the feature, it isn’t prioritizing vacation rental search.

In Expedia’s iOS app, you can select Explore trip ideas with ChatGPT, press the microphone option to speak or type a question, such as “What are some vacation rental options in Chicago for mid-July for four people.”

The chatbot responds with four options such as a “Cozy 2BR Apartment in Lincoln Park, Chicago” or Spacious 1BR Condo in River North Chicago.” There’s also verbiage about the amenities, and the locations. 

There are no other actionable choices other than to ask another