Expedia Group’s recent layoffs of hundreds of marketing employees—primarily content creators—signal a strategic pivot toward AI-driven efficiency and cost-cutting. For Vrbo hosts, whose vacation rentals rely on Expedia’s marketing engine for visibility, this shift raises critical questions about how travelers will discover their properties moving forward. While performance marketing teams (managing paid ads) remain intact, the reduction of editorial staff hints at a future where AI-generated content and hyper-targeted campaigns replace traditional storytelling.
Why Did Expedia Cut Its Marketing Team?
The Hospitality Industry’s AI Arms Race
Expedia’s layoffs align with a broader industry trend: replacing human-driven content with AI tools. The company aims to streamline operations by automating tasks like blog posts, travel guides, and email campaigns. This mirrors moves by companies like China’s BlueFocus, which fully replaced human writers with AI. For Vrbo hosts, this means Expedia may prioritize scalable, algorithmically generated content over curated editorial features that once highlighted specific properties or destinations.
Post-Pandemic Pressure to Prioritize Profitability
The STR sector’s post-COVID surge has cooled, with supply now outpacing demand in many markets. Expedia, like its peers, faces investor pressure to improve margins. Vacation rental managers are already feeling the squeeze: Vacasa cut 1,300 jobs in 2023 and another 2,300 by March 2024. Expedia’s layoffs reflect a similar focus on leaner operations, with Vrbo’s parent company seeking to reinvest savings into high-ROI initiatives.
Competitive Pressures From Airbnb and Booking
- Expedia posted $13.7 billion in revenue for 2024, up 7% from the prior year.
- Booking Holdings outpaced Expedia with $23.7 billion in revenue.
- Airbnb, despite lower revenue (~$11 billion), maintains stronger profitability due to lower marketing spend.
Following Airbnb’s Lead in Reducing Marketing Costs?
Airbnb slashed its marketing budget post-COVID and never returned to previous spending levels. Nearly 90% of Airbnb’s traffic now comes from organic or direct channels, reducing its reliance on paid ads.
Expedia, in contrast, spent $6.8 billion on marketing in 2024—almost 50% of its revenue. This cost disparity has put pressure on Expedia to find more efficient, AI-driven alternatives to traditional marketing.
Impact on Vrbo Hosts: Visibility, Tools, and Competition
Will Vrbo Listings Lose Visibility?
Short-term, Vrbo listings should maintain exposure through Expedia’s paid ad spend on Google, social media, and travel sites. However, the type of visibility may shift:
- Less editorial storytelling: Fewer blog posts or destination guides featuring specific Vrbo properties.
- More AI-driven personalization: Algorithmic recommendations on Expedia’s app/website, tailored to user behavior.
- Potential SEO erosion: Reduced fresh, human-crafted content could weaken organic search rankings for Vrbo’s platform.
AI Tools: Opportunity or Homogenization?
Expedia plans to redirect savings into AI tools for hosts. While these tools could help hosts compete, they risk standardizing listings, making it harder for unique properties to stand out. Hosts must balance AI efficiency with personalized touches (e.g., custom welcome books, local tips) to differentiate their rentals.
The Rising Bar for Hosts
With Expedia’s leaner team, Vrbo’s algorithm will likely prioritize listings that excel in:
- Guest reviews: Properties with consistent 4.5+ ratings.
- Response times: Hosts who reply to inquiries within hours.
- Content quality: High-resolution photos (50+ per listing), keyword-rich descriptions.
Strategic Recommendations for Vrbo Hosts
1. Double Down on Listing Excellence
- Use Expedia’s upcoming AI tools to refine descriptions and photos, but add unique details manually (e.g., “handcrafted cedar hot tub” vs. “private hot tub”).
- Adopt dynamic pricing tools like PriceLabs or Wheelhouse to stay competitive amid market saturation.
2. Diversify Beyond Vrbo
- List on Airbnb, Booking.com, and niche platforms (e.g., Kid & Coe for family-friendly homes).
- Build direct bookings via a simple website and email/SMS campaigns for past guests.
3. Leverage Expedia’s Ecosystem
- Opt into Expedia’s “One Key” program to attract loyalty members.
- Monitor new AI features (e.g., AI-generated “Travel Shops” with influencers) and adapt listings to align with them.
4. Compete on Experience, Not Just Algorithms
- Highlight unique amenities (e.g., EV chargers, Peloton bikes) in titles and descriptions.
- Partner with local businesses to create guest perks (e.g., discounted yoga classes), then promote these in your listing.
Expedia’s layoffs underscore a shift: the era of bloated marketing budgets and manual content creation is ending. For Vrbo hosts, success will hinge on embracing AI-driven tools while doubling down on the human-centric details that make their rentals memorable. By optimizing listings, diversifying marketing channels, and prioritizing guest experience, savvy hosts can turn Expedia’s efficiency play into an opportunity—not a threat.
Adaptability is the new premium in the STR industry. As Expedia’s CEO Ariane Gorin noted, the goal is “smarter, not bigger” marketing. Hosts who mirror this mindset will thrive.
