VRMA Administrator
The niche short-term rental market is starting to tighten, and startups investing in booking software should prepare accordingly. The post-pandemic boom for these companies will eventually end, and a shakeout is likely when pitted against big platforms like Expedia and Airbnb. A Hostfully survey of 375 vacation rental operators found 80 percent felt more competition within their markets than in the previous year, even though their revenue continues to grow, albeit less rapidly. “More vacation rental reservations are being booked than ever, but the competition for those reservations is steep,” said Key Data's Melanie Brown. “It's time to reassess your pricing and marketing strategies to make sure you stay competitive.” Short-term rental consultant Mike Ortegon thinks a large number of independent short-term rental platforms cannot continue to exist for much longer, and "only three or four major players" will ultimately prevail. One contender he favors is AltoVita, a platform that raised $9.5 million in capital, due to its focus on business travelers. Hostfully's poll identified portfolio expansion as critical to surviving the shakeout, and many short-term rental platforms have already initiated mergers.
Skift.com (12/15/22) Justin Dawes
