Skift Travel News Blog

Vacation rental property manager Evolve is laying off 14 percent of its staff — or 164 employees.

In a memo to employees, Evolve’s chief executive officer Brian Egan wrote “We are operating in a market that has become increasingly dynamic and volatile. Specifically, marketwide supply growth has considerably outpaced demand growth, which has led to average daily rates, bookings, and revenue per property coming in below our expectations,” he said. 

“This means we will be supporting fewer customers, and will generate less revenue than we planned heading into this year. As a result, we need to reduce the size of our team to align our organization and overall expense structure to this new market context.” The story was first reported by Short Term Rentalz.

The Denver-based company announced a $100 million capital raise last February — Durable Capital Partners led the round. Evolve manages more than 30,000 vacation rentals, and it has raised $235 million. Evolve’s ​​basic plan charges a 10 percent commission and doesn’t include housekeeping or maintenance but does include all aspects of driving rental income as an on-ramp to marketing a property on major channels like Airbnb, Booking.com, and Vrbo. Services include shooting professional photos, creating a listing, offering advice on rate-setting, and handling guest interactions.

Following the raise, in August, Evolve signed a contract with Hopper to add 24,000 homes to Hopper’s app. At the time Eric Schueller, Evolve’s senior vice president of revenue said his company seeks to get incremental bookings from Generation Z guests through the Hopper partnership, and not just shift bookings to Hopper from other distribution partners. Hopper’s guests skew younger than Evolve’s core customers, he added.

Budget hotel chain operator Oyo has announced its intention to expand its UK presence with plans to increase its number of hotels to over 200 by the end of this year.

As part of this expansion, Oyo will be adding more than 50 properties to its portfolio in the country by 2023, including in Leeds, Brighton, and Plymouth.

Oyo is currently in advanced-stage negotiations with over 30 hotels as it plans to bring more hotels into its platform this year, said Puneet Yadav, head of Oyo UK.

The company presently operates over 150 small hotels in 65 cities throughout the UK, with Otterburn, Folkestone, Worcester, Swansea, Crewe, Kidderminster, Solihull, Peterhead, and Boston as its latest additions.

In 2022, the company’s UK operations generated revenue that surpassed 2019 levels, with a 140 percent increase from 2021. Additionally, Oyo observed a 50 percent rise in revenue per available room compared to 2021.

Last year, the company expanded its platform in the country by adding 40 hotels. London, Birmingham, Torquay, Great Yarmouth and Manchester are its top markets in UK, according to Oyo.

The company currently has 27 hotels in London region on its platform and 38 in the Midlands region.

Talking about the interest from hotels owners, Gautam Swaroop, CEO of OYO International, said, “Our result-oriented tech stack has been a draw for many entrepreneurs in the UK who are looking to improve and scale their hotel business,”

Swaroop said the expansion would enable many small businesses in the region to manage their business with ease.

Oyo has presence in over 35 countries globally. It owns a vacations home business in the European Union called Oyo Vacation Homes, which operates legacy brands such as DanCenter and Belvilla.

Strengthening its portfolio as a full-stack vacation homes provider, last year the company acquired Croatia-headquartered Direct Booker and Denmark-based vacation rental operator — Bornholmske Feriehuse.

Rating agency Moody’s Investors Service stated this week that Oyo is expected to maintain sufficient liquidity buffers to sustain its operations until it becomes cash flow positive over the next 12 to 18 months, supported by a robust recovery in travel demand and cost optimization measures.

Airbnb released a host of new upgrades and features in its summer release last week. Airbnb chief executive officer Brian Chesky has promised to work on more.

In a response to a suggestion from a user on Twitter, Chesky hinted at working on: lower cleaning fees, better search & filters, verified listings, better customer service, guest loyalty program, total price with taxes, better review system and lower prices. 

“Millions of people have given us feedback on how to improve Airbnb. We’ve listened,” Airbnb co-founder and CEO Brian Chesky said during the announcement. “Today, we’re introducing the most extensive set of updates ever. Our design-driven approach means we’re always making Airbnb better, and our over 50 new features and upgrades are just the beginning. We will never stop improving Airbnb.”

The company said that the summer release was a response to user and host feedback. At the center of this is Airbnb Rooms, which the company characterizes as “an all-new take on the original Airbnb.” There is now a rooms category with over 1 million listings, redesigned filters and added new privacy and other features. 

For guests, the features include total price display — so guests can view the total price with fees, before taxes, across the entire app including in search results, price filter, maps, and listing pages. There is also now a “months” tab to look for hosts accommodating longer-term guests.  For stays over three months, the guest service fee after the third month will be reduced. 

Hostaway, which offers property management software to vacation rentals, has launched a ChatGPT-powered artificial intelligence tool. 

All of its property managers and channel manager clients will have the option to use the tool to manage listings and increase bookings, by perfecting listings. 

The tool will match the tone of voice and professional style to each operators’ brand and audience to create brand consistency.

“We take pride in responding quickly to developments in technology and the wider travel industry,” Saber Kordestanchi, Hostaway co-founder and chief operating officer, said. “ AI is going to transform the experience of property managers as well as guests and this is just the first of many enhancements we expect to make.”

Last month, a property operations platform for short-term rentals Breezeway launched ChatGPT-powered artificial intelligence tools within its platform.Labeled as Assist AI, the tool will introduce a series of automation features including guest messaging, reservations, property profile and other data. 

Watch the short 10-minute video below as Skift CEO Rafat Ali explains how conversational AI boom will change travel search and booking. This is a follow-up on his first video for the new era of radical innovation in travel booking.

Rental platform Zumper is entering the vacation rental market. 

The San Francisco-based company has launched Vacations by Zumper, which includes listings Bookings.com, Vrbo, as well as hotels. It has partnered with Evolve and Rentals United — Evolve is providing 27,000 home listings to Zumper, and the site has launched with 50,000 new hotel listings. 

The company also said that it has expanded its short-term rental inventory to over 1 million listings, a 50 percent increase from its initial launch in August 2022. Earlier this month, it launched Flexpass, its subscription service targeting remote workers and digital nomads for an annual fee of $300. 

Zumper caters to mobile renters, targeting remote workers and digital nomads. Apartments listed on the site come fully furnished and equipped and can be rented for a minimum of 30 nights without leases, security deposits, application or cleaning fees. 

Founded in 2012, the company claims it wants to make renting a home as easy as booking a hotel. The company has raised a total of $180 million in funding with the latest Series D round of $30 million led by Kleiner Perkins. Blackstone Group, Greylock,Greycroft, Axel Springer, Breyer Capital and Andreessen Horowitz have also invested in Zumper. The company acquired Padmapper and NowRenting in 2016 and 2019 respectively. 

The Swiss city of Lucerne is the latest to place restrictions on short-term rentals. Lucerne citizens voted (64 percent) to limit short-term rental stays to a maximum of 90 days per year.  

Lucerne is the fifth city in Switzerland after Geneva, Zurich, Basel and Bern to cap short-term rentals. The initiative was led by Social Democratic Party, aimed to cap rentals  available on a temporary basis to make more housing available to residents of the city.  

Bern is one of the top tourist destinations in the country, and those opposed to the move warned that it might risk losing incoming tourists. 

Switzerland joins a number of cities across Europe to curtail short-term rentals via platforms like Airbnb, Vrbo. Earlier this month, Portugal proposed a ban on issuing new licenses to operate short-term rentals in a move to manage the cost-of-living and housing crisis.  

There are similar restrictions in Madrid, Andalusia, Barcelona and Valencia in Spain. 

This comes on the heels of the European Commission approving new rules about collecting and sharing data on short-term accommodation at EU level. Beyond data-sharing, the EU-level regulations aim to reduce fragmentation among local communities, clamp down illegal listings and promote sustainable tourism in keeping with local laws and regional mandates across Europe. 

German vacation rental marketplace HomeToGo’s revenue grew to €146 million ($155 million) in 2022, up 54 percent from the comparable period in 2021. This is well ahead of its initial guidance of €120-125 million ($127-$132 million) for 2022. The announcement is part of the company’s preliminary results for 2022. 

During the same period, the Berlin-based company’s subscriptions and services grew to €24 million ($25.4 million) increasing by 169 percent from €9 million ($9.5 million) in 2021. Its onsite revenues, where travelers booked directly on the company’s websites, grew to €67 million ($71 million), up by 111 percent from €32 million ($34 million) from 2021. 

Founded in 2014, HomeToGo currently operates localized apps and websites in 25 countries.

In January this year, the company said it was on track to break even in 2023, buoyed by the optimism of a much greater backlog of bookings at the beginning of 2023 than the previous year. The booking backlog of €32.5 million ($34.5 million) amounted to a 72 percent year-over-year increase.

“One key piece of this has been our clear focus on an efficient marketing strategy to drive and scale repeat demand,” HomeToGo CFO ​​Steffen Schneider told Skift in January. 

HomeToGo raised a total of $176 million in private funding over six rounds, and has acquired 10 companies, a prominent one being e-domizil for $45 million in March 2022. 

UnderTheDoormat Group CEO Merilee Karr said her company’s new technology and distribution agreement with Visit Oman can be a novel approach to short-term regulation — one where technology can spur governments to embrace the sector rather than shun it.

Through an agreement signed last month in Muscat, Oman, government-approved property listings delivered through the UK’s UnderTheDoormat Group’s Hospira property management and distribution platform were live in November in time for the World Cup in Qatar.

Oman already offered had short-term rentals through hotel licenses and from a variety of players on big global platforms such as Airbnb and Booking.com.

But Karr said the tech partnership breaks new ground, officially opens the market, and provides Oman with the transparency it sought about an otherwise-fragmented sector.

Property developers, hospitality companies, small- and medium-size enterprises (SMEs), and eventually individually owned short-term rentals that are licensed can connect their properties through Hospira to access the market, and the major global platforms, she said.

The Visit Oman-UnderTheDoormat Group pact is exclusive, Karr said.

Like others in the Middle East, Oman is trying to develop a more diversified tourism economy.

“Through the Visit Oman gateway, the Hospiria platform will provide an efficient launching point for Omani companies, SMEs, and property owners to place their apartments, villas and homes onto the short-term rental market globally,” said Sahib Al Mamari, managing director of Visit Oman, as part of the announcement. “This latest Visit Oman initiative with UnderTheDoormat falls in line with the broader, existing Oman Tourism Vision 2040 strategy, and serves to shift the Sultanate of Oman towards a more diversified and developed tourism economy, and one that leverages digital innovation and technology to maximize value for the Omani tourism market, as well as the tourism-related SME economy in Oman.”

California-based RedAwning announced it acquired channel manager Lexicon Travel Technologies. Terms of the deal were not disclosed.

Channel managers have tech systems to assist accommodations in distributing their properties to websites such as Airbnb, Vrbo and Booking, and sometimes to global distribution systems, among other outlets.

“After we made the decision to sell our business, we looked for a company that would create true synergies with our existing value proposition,” said Joel Inman, CEO and founder of Lexicon. “As I got to know the RedAwning platform, I realized they have already solved many of the technical challenges Lexicon has been facing. RedAwning brings true technology and automation to channel management that delivers value through higher conversion with essentially zero manual work.”

RedAwning has a portfolio of some 15,000 managed and independent short-term rentals in North America, and already provides channel management services as it places them on websites such as Vrbo, Booking.com, Expedia, Homes & Villas by Marriott International, and Google Travel.

RedAwning hopes to pick up the channel management client roster of Lexicon Travel Technologies, which is headquartered in Park City, Utah. RedAwning is buying Lexicon’s channel management tech.

RedAwning said most of Lexicon’s clients have already related their intentions to use Red Awning for channel management.

“The transitions will be seamless for all of our new clients, as RedAwning already supports all of the same PMS (Property Management System) platforms as Lexicon and all of the channels too, as well as many more for Lexicon clients to join,” said RedAwning CEO Tim Choate in the announcement.

Earlier this week, property management tech company TravelNet Solutions said it acquired Rented, a revenue management company focusing on short-term rentals.

In a second round of cuts since mid-year, property manager AvantStay laid off 144 staffers, about 22 percent of its workforce, according to a published report from Short Term Rentalz.

This followed the Los Angeles-based vacation rental firm eliminating some 43 jobs around June 1.

In a letter to employees, AvantStay spun the latest round of layoffs as an issue of over-hiring and too rosy a forecast rather than slackened demand or any other underlying problems at the company.

However, at least one rival, public company Vacasa, reported softening demand for vacation rentals that began in the third quarter, which ended September 30.

AvantStay representatives didn’t respond to a Skift request for comment Wednesday.