Ask Skift is our artificial intelligence chatbot that offers a new way for readers to better engage with our breadth of knowledge and our latest experimentation creating products travel professionals rely on. It digs into news stories, Skift Research reports, Airline Weekly issues, Skift Live events, the Daily Lodging Report, and more to answer many questions about the travel industry.
Here are three questions we asked it about Expedia’s short-term rental business.
How has Expedia’s short-term rental business changed over the last 5 years?
Over the last 5 years, Expedia has been working on diversifying its offerings, including expanding its short-term rental business. However, the company has faced challenges in integrating its various product offerings across its many brands. For instance, Vrbo’s short-term rental inventory was long siloed from Expedia’s other offerings (12/05/2022). Expedia has also made acquisitions and created new businesses to address the short-term rental market, but some of these experiments have been shut down to focus on the core business, especially during the COVID-19 pandemic (05/26/2020).
As the short-term rental industry has evolved, Expedia has had to adapt to the increasing convergence between different accommodation sectors. Platforms like Expedia and Booking.com have started to mix various types of accommodations in their search results, making it harder to define what is included in the short-term rental or vacation rental sector (12/03/2020).
Overall, Expedia’s short-term rental business has seen changes and challenges over the last 5 years as the company works to diversify its offerings and adapt to the evolving accommodation landscape.
As the short-term rental industry has evolved, Expedia has had to adapt to the increasing convergence between different accommodation sectors. Platforms like Expedia and Booking.com have started to mix various types of accommodations in their search results, making it harder to define what is included in the short-term rental or vacation rental sector (12/03/2020).
Overall, Expedia’s short-term rental business has seen changes and challenges over the last 5 years as the company works to diversify its offerings and adapt to the evolving accommodation landscape.
What is Expedia’s main short-term rental brand and why?
Expedia’s main short-term rental brand is Vrbo (previously HomeAway). Vrbo operates an online marketplace for alternative accommodations, focusing on whole-home vacation rentals. It has localized websites around the world and serves as a platform for families to find the space they need to relax, reconnect, and enjoy their time away together. Expedia Group, which owns Vrbo, has broader interests in the travel industry, including other brands like Expedia.com and Hotels.com. However, Vrbo stands out as their primary brand in the short-term rental market due to its focus on whole-home rentals and family travel experiences.
What is the difference between the business models of Airbnb and Vrbo?
Airbnb and Vrbo have different business models in terms of property types and target markets. Airbnb offers a variety of property types, including apartments, private rooms, and vacation rentals, catering to a wide range of guests. On the other hand, Vrbo focuses primarily on whole homes, targeting families and larger groups looking for vacation rentals in destination resort areas.
Airbnb’s adaptable business model allows it to offer the right type of supply in many parts of the world, depending on market conditions. This diverse supply enables Airbnb to continue growing in various segments. In contrast, Vrbo’s focus on whole homes may limit its growth potential in certain markets.
Additionally, Airbnb has a broader brand recognition and attracts more direct traffic and bookings compared to Vrbo. Airbnb has also been more nimble in adapting to market changes, such as transitioning to emphasize long-term stays faster than its competitors.
In terms of host and property manager relationships, Airbnb has been trying to downplay professional hosts, while Vrbo adopts a hybrid approach, catering to both individual homeowners and professional property managers. Airbnb has been increasing its share of professionally managed vacation rental bookings but still mostly serves lower-value rentals, contributing less to overall revenue for professional property managers compared to Vrbo.
Overall, the main differences between Airbnb and Vrbo’s business models lie in their property types, target markets, adaptability, and relationships with hosts and property managers.
Airbnb’s adaptable business model allows it to offer the right type of supply in many parts of the world, depending on market conditions. This diverse supply enables Airbnb to continue growing in various segments. In contrast, Vrbo’s focus on whole homes may limit its growth potential in certain markets.
Additionally, Airbnb has a broader brand recognition and attracts more direct traffic and bookings compared to Vrbo. Airbnb has also been more nimble in adapting to market changes, such as transitioning to emphasize long-term stays faster than its competitors.
In terms of host and property manager relationships, Airbnb has been trying to downplay professional hosts, while Vrbo adopts a hybrid approach, catering to both individual homeowners and professional property managers. Airbnb has been increasing its share of professionally managed vacation rental bookings but still mostly serves lower-value rentals, contributing less to overall revenue for professional property managers compared to Vrbo.
Overall, the main differences between Airbnb and Vrbo’s business models lie in their property types, target markets, adaptability, and relationships with hosts and property managers.