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.
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.
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.