Booking.com is betting on its diverse accommodations to win over travelers, while Vrbo is jumping into the urban rental game. But what do these moves mean for you as a short-term rental pro? Here’s a breakdown of each platform’s Q3 2024 highlights, the strategies that powered their growth, and how you can use these insights to stay competitive. And for those curious about Airbnb’s Q3 performance, check out our detailed analysis here.
Booking.com Q3 2024: The Ultimate One-Stop-Shop for Every Type of Stay?
Booking.com’s Q3 performance reflects a mission: to be the go-to platform for travelers looking to book anything from a hotel to a unique vacation rental. With an 8% rise in room nights and a 14% boost in its alternative accommodations (AA) segment, Booking.com is telling us it’s serious about competing on every level.
Key Highlights from Q3
- Alternative Accommodations Expansion: Booking.com’s AA room nights now make up 35% of its total bookings. A 10% increase in AA listings means more choices for travelers—and more competition for hotel-heavy platforms.
- Genius Loyalty and Direct Bookings: Mobile bookings rose over 50%, and Genius loyalty users drove a significant part of these bookings. For travelers, it’s not just about a stay—it’s about loyalty perks and convenience.
- “Open The Door” Campaign: Booking.com launched its “Open The Door” campaign in key markets to attract new hosts. This campaign emphasizes the flexibility and income potential of hosting, positioning Booking.com as an attractive option for property owners.
What’s Driving Booking.com’s Success?
- Expanding Alternative Accommodations (AA): Booking.com is thriving by blurring the lines between hotel and vacation rental options, giving guests the best of both worlds. Its diverse inventory and active marketing to hosts have helped it ramp up new listings, making it a more versatile choice for travelers.
- Connected Trip Vision: By bundling accommodations, flights, and activities, Booking.com is creating a “one-stop travel shop.” The more travelers can book on one platform, the stronger their loyalty grows—and the more likely they’ll return.
Vrbo Q3 2024: From Beachfronts to Cityscapes—Is Vrbo Changing the Game?
After fully integrating into Expedia’s shared platform, Vrbo had its first full quarter of growth. But what’s most telling is the 1 million new urban listings Vrbo added, buoyed by its entry into city rentals and a “stress-free hosting” ad campaign that appeals to potential hosts looking for a streamlined way to earn.
Key Highlights from Q3
- Urban Listings Are In: Traditionally focused on vacation homes, Vrbo now offers 1 million city-friendly listings, previously available exclusively on Expedia, meeting growing demand for urban, short-stay options.
- App Enhancements and New Marketing: With app performance upgrades and a targeted ad featuring Nick Saban, Vrbo is appealing to travelers and new hosts alike, focusing on ease of use and a reliable experience.
- Stress-Free Hosting Ads: Vrbo’s ads promote the idea of low-stress hosting, aiming to draw in property owners interested in renting out their homes without the hassle. This campaign aligns with Vrbo’s efforts to simplify hosting and expand its supply in urban markets.
What’s Powering Vrbo’s Growth?
- Urban Expansion: By entering urban markets, Vrbo now attracts short-stay travelers and those looking for city experiences. This shift can mean more visibility for managers catering to urban tourists.
- App-Centric Strategy: Vrbo’s app upgrades focus on direct booking, signaling a shift to cut reliance on third-party channels and foster stronger customer connections.
- One Key’s Cross-Platform Appeal: Through the expansion of its One Key rewards program, Vrbo enables guests to earn points that they can use on Expedia’s other brands, increasing guest retention by offering value across multiple booking platforms.
Booking.com vs. Vrbo: The Big Takeaways for Pro STR Managers
Inventory Tactics—Two Very Different Approaches
- Booking.com’s Variety-Driven Model: By offering hotels and rentals side-by-side, Booking.com captures a broad audience open to various accommodation types. Its new “Open The Door” campaign underscores its commitment to building a diverse host network.
- Vrbo’s City Focus and Stress-Free Hosting Appeal: Vrbo’s entrance into urban markets and host-friendly ads position it as a strong option for managers in city markets, creating new possibilities for urban-focused STR managers.
Direct Bookings and Loyalty—Retaining the Guest
- Booking.com’s Genius Loyalty Program: The Genius program rewards frequent travelers and drives mobile bookings. For managers, being part of this loyalty ecosystem can mean more repeat bookings.
- Vrbo’s One Key Loyalty Program: With One Key enabling cross-platform points, Vrbo is reinforcing loyalty across Expedia Group brands.
Creating a Unique Guest Experience
- Booking.com’s Connected Trip Vision: Booking.com wants travelers to book flights, stays, and activities in one place. This approach might resonate with guests seeking convenience and savings.
- Vrbo’s Direct Booking Push: With better tech and marketing, Vrbo aims to attract guests directly on its platform, potentially appealing to travelers who value ease of booking.
Actionable Insights for Short-Term Rental Managers
Get Cross-Listed Where Possible
- Take Advantage of Booking.com’s Host Marketing and Diverse Inventory: If you manage multiple property types, consider cross-listing on Booking.com, which is actively courting hosts and growing its inventory.
Tap into Vrbo’s Urban Audience
- Optimize for Short Stays in Cities: Vrbo’s urban shift is an opportunity for managers with city-based properties. Highlighting proximity to urban attractions and offering flexible check-in/check-out could attract more of Vrbo’s growing city-focused audience.
Use Loyalty and App Tools to Your Advantage
- For Booking.com Listings: Genius loyalty can be an asset in securing repeat guests, so maximize your appeal within the loyalty ecosystem.
- For Vrbo Listings: Take advantage of Vrbo’s app and direct booking improvements, as well as the One Key loyalty program,and ensure your property listings are optimized for mobile browsing and quick booking.
With each platform making bold moves, short-term rental managers have clear takeaways: Booking.com’s all-in-one platform and Vrbo’s urban expansion each open unique opportunities to expand your reach. Staying agile with your listings, tapping into platform-specific advantages, and catering to new traveler demands will be key to staying competitive.
For more insights, especially on Airbnb’s evolving approach, read our full analysis here.
