Skift Take
Vacasa is a leader in brand building within the short-term rental space, but Skift Research estimates it still relies heavily on third-party booking sites, like Airbnb, for the majority of sales. Management surely hopes to become a majority first-party business – and to earn the margin benefits that follow.
Vacasa's public debut in December 2021 was a big deal for the short-term rental market. As the largest branded property manager in the U.S., it touches nearly every part of the short-term rental sector and is an important bellwether for the space.
That's why its stock market performance, down a staggering 94% since that debut, is such a disappointment. True, except for a few blockbusters, the entire stock market has been shaky. But with Vacasa's losses of $17 million over the past 12 months and an outlook for slowing revenue growth, it’s hard to blame the market.
Skift Research recently conducted a deep dive into Vacasa and the future of branded short-term rentals to explore these issues.
The below excerpt focuses on Vacasa's sales and marketing strategy. This 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?
The full report digs deeper into the rest of Vacasa's business, including its inventory, occupancy, pricing power, and overall cost structure. It also take a broader look into the current state of the short-term rental industry and how it will grow in a more normal environment after the pandemic-era boom.
Understandi