Articles tagged “flipkey”

Airbnb disrupted vacation rentals. Will short-term rentals take a chunk out of the hotel business? History shows that's a distinct probability.

Some might consider it ironic that there's been a lot of talk about the possibility of Expedia Group shedding assets, but Tripadvisor is the one actively trying to sell its vacation rental businesses. There has been speculation for some time that Tripadvisor would make such a move — and now it's actually happening.

The short-term rental sector is rapidly expanding. Beyond key platforms in this sector, there is a growing ecosystem of property managers, startups and vendors that are competing to commercialize this space as regulators consider the rules and who's responsible for enforcing them. Find out who's joining Airbnb at this house party.

For years, Airbnb, Booking.com, Expedia's HomeAway, and TripAdvisor have been scrambling for market share in vacation rentals to drive consolidation. But TripAdvisor says it is now focused on "quality" listings, rather than quantity.

The U.S. alternative accommodations market remains a one-horse race with Airbnb leading its rivals, but the brand's smart first-mover advantage has also turned it into the whipping boy for local tax authorities and hotel lobbies. This turbulent landscape leaves plenty of room for new consumer-facing brands but also opportunities across the broader alternative accommodations ecosystem.

Can such a thing exist? Yes, but if we want it to work, we need short-term rental platforms and local governments to cooperate with each other.

Does regulating short-term rental platforms like Airbnb really work? Well if Airbnb and its peers would cooperate instead of passing the buck to taxpayers regulation could have a fighting chance.

It is very attractive for Booking.com to abstain from charging travelers a booking fee on vacation rentals. But the lack thereof means Booking.com's commissions may not be competitive and shareholders will likely demand that Booking.com maximize the revenue opportunity and impose the booking fee.

Given their size, TripAdvisor and its FlipKey brand will weather this storm but they have some serious fence-mending to do with vacation rental property managers. It's not just airlines that sometimes cause a lot of pain when they make big technology changes.

TripAdvisor/FlipKey's challenges with the vacation rental industry aren't only technical ones. They also reflect increased supply available from individual homeowners and apartment renters. TripAdvisor, Booking.com and Airbnb are going after this sector and professionally managed properties are feeling the lumps.