Vacation Rental Distribution Strategy & Why You Need One
We see it and hear about it all the time - properties listed on one OTA platform and one platform only. I get it, managing multiple profiles and multiple calendars isn’t an easy thing to do. The heavy investment in both time and software to do all of that limits many owners, and even managers, to one platform. It’s a simple solution, I get it, but it’s absolutely costing you bookings.
Each of the OTA platforms cater to different demographics, geographic locations and offer unique features and experiences tailored to specific preferences. Understanding these differences will only help you maximize the booked nights in your soon-to-be unified calendar.
Let’s start with a few important concepts that set the stage for observing the different OTA platforms.
Platform Distribution
According to Lighthouse (formerly OTA Insight) here are the average booked nights per month per listing based on platform distribution:
Pretty simple to follow this chart and get the point across - being in more places increases the amount of nights you will book. Makes perfect sense.
Pay particular attention to the fact that listing ONLY on VRBO/Expedia we yield only a third of the bookable nights that a more comprehensive distribution strategy will. Obviously, this figure doesn’t apply to a specific location in Atlantic Canada, but across all bookable locations that data was accrued from. Big difference, nevertheless.
Where Guests Come From
Atlantic Canada is now a big target on the radar of traveller’s from around the globe. Different countries use different OTA’s to book the majority of their travel. It is important to know how the platforms differ in the guests that they attract.
That VRBO stat of 90% domestic can not be ignored. If you want visitors from Ontario and Quebec, then you have to be on VRBO.
If you would like to entertain American, European, Asian, South American or pretty much anywhere else outside of Canada, then the strength of Booking.com and Airbnb simply can not be set aside.
Let’s take a look at each platform in detail.
Airbnb
Typical Listings:
Airbnb has a heavier slant towards urban and smaller properties, with over 50% of the properties on the site being apartments.
Booking Audience:
Millennials and younger travellers: Airbnb's user-friendly interface and focus on unique, personalized experiences appeal to younger generations seeking authentic and immersive travel experiences.
Budget-conscious travellers: With options ranging from shared rooms to entire homes, Airbnb caters to travellers looking for affordable accommodations without sacrificing comfort or convenience.
Solo travellers and couples: Airbnb's selection of cozy studios and one-bedroom apartments make it popular among solo travellers and couples seeking intimate getaways
Key Features:
User-generated reviews and ratings help travellers make informed decisions and ensure the quality of accommodations.
Airbnb Experiences offer unique activities and tours hosted by local experts, enhancing the overall travel experience.
Flexible booking options, including instant booking and customizable search filters, cater to travellers' preferences and schedules.
Key Stats:
61% of North American vacation rentals are listed on the platform
67% of Asian vacation rentals are on the platform
68% of South American rentals are on the platform
47% of European rentals are on the platform
VRBO
Typical Listings:
Formerly known as HomeAway, VRBO specializes in vacation rentals, including beach houses, cabins, and condos.
Booking Audience:
Families and large groups: VRBO’s spacious accommodations and emphasis on family-friendly amenities make it a popular choice among families and groups traveling together.
Luxury travellers: VRBO offers a selection of upscale properties, including private estates and waterfront villas, catering to travellers seeking luxury and exclusivity.
Repeat travellers: VRBO’s loyalty program and extensive inventory of vacation rentals worldwide attract repeat customers who value consistency and reliability.
Key Features:
Extensive property listings with detailed descriptions and photos allow travellers to find the perfect accommodation for their needs.
Secure booking platform and payment protection ensure peace of mind for travellers and property owners alike.
VRBO's Trip Boards feature enables travellers to save and share their favourite properties with friends and family, facilitating group trip planning.
Key Stats:
29% of North American vacation rentals are listed on the platform
5% of Asian vacation rentals are on the platform
6% of South American rentals are on the platform
17% of European rentals are on the platform
Booking.com:
Typical Listings:
While primarily known for hotel bookings, Booking.com also offers a wide selection of vacation rentals, including apartments, guesthouses, and vacation homes.
Booking Audience:
Business travellers: Booking.com's seamless booking process and extensive inventory of accommodations cater to business travellers seeking convenient and comfortable lodging options.
Last-minute travellers: Booking.com's real-time availability and competitive pricing make it a go-to choice for spontaneous travellers seeking immediate bookings.
International travellers: With a global presence and support for multiple languages and currencies, Booking.com appeals to travellers from around the world seeking accommodations abroad.
Key Features:
Booking.com's Genius loyalty program offers exclusive discounts and perks to frequent travellers, incentivizing repeat bookings.
Instant confirmation and flexible cancellation policies provide flexibility and peace of mind for travellers making last-minute plans.
Transparent pricing and no booking fees ensure that travellers get the best value for their money when booking vacation rentals.
Key Stats:
10% of North American vacation rentals are listed on the platform
28% of Asian vacation rentals are on the platform
26% of South American rentals are on the platform
36% of European rentals are on the platform
So what does all of this tells you? A lot, actually, it just depends on how you need to use it for your particular vacation rental. Each platform has it’s strengths attracting different age, location and economic demographics. To keep it simple, if your property has a very specific target guest in mind, then you need to be present on the platform(s) that statically service that type of guest best. If you are open to a wide range of guests, then you need to be everywhere where anyone can find you - on all 3 platforms.
I could talk about this stuff all day, but here are some odd parting thoughts regarding how this data may assist you in other ways:
Can you make more being where others aren’t?
Interesting idea, small pond, big fish. Say, if only 10% of the comparable vacation rental properties around yours were on Booking.com, wouldn’t it be a lot easier to stand out on that OTA and steal some easy bookings while others only battle it out elsewhere? It doesn’t matter if the traffic on that OTA may be smaller, so is the competition. We have tested this in the real world, and yes, it 1000% works.
How is this data trending?
I will try and stay (relatively) on top of this from year to year. The current housing crisis will not be subsiding anytime soon and the impact of short-term rentals have been a part of that conversation. Add the recent and bad PR of Airbnb and the subsequent significant and expensive marketing pushes from both VRBO and Booking.com, I expect the North American numbers to significantly shift in the coming years. Family-oriented cottage rentals are not viewed in the same light as chop-shop condos in the city. I can see a world where Airbnb’s numbers take a hit as some owners may not want the affiliation.
Do you know who your target guest actually is?
This is an exercise that too many owners/managers don’t run themselves through. While I don’t expect anyone to remember the specifics of the data presented here, I do hope this snapshot does make at least a few people ask themselves the question. Once you know who they are, your marketing, your messaging and as a result, your online appeal changes for the better.
Should I promote differently on the different platforms?
If you are targeting specific guests on a certain platform, then yes. This is something we started experimenting with and it totally works. Different images, different write-ups and a resulting different vibe for the same place can be created. Doing the same thing and expecting different results doesn’t really work.
The takeaway you need here is - you actually need to strategize on who you are trying to attract and how to best land those type of guests. It’s not easy, I get it, but I am absolute certain it works to provide better guests, more booked nights and in turn a better balance sheet for you.
I hope that was worth a read and would be happy to chat about this for an annoyingly long time together.
