EP155: Airbnb vs. HomeAway and VRBO

To diversify, or not to diversify, that is the question.Should you be listing on multiple platforms? Or is it better to stick with just one?Richard Fertig is the host of Short Term Rental Secrets, a YouTube channel dedicated to building a community of short-term rental hosts who learn from each other’s experience. Richard is an entrepreneur and former Wall Street Hedgefunder who signed up for Airbnb four years ago. In that time, he has generated over $500,000 in income hosting his small portfolio of real estate investments.Listen to understand the differences among Airbnb, HomeAway, VRBO and Booking.com. Richard also shares his experience with listing on multiple platforms, discussing the advantages of diversifying as well as the complications that can arise. This is a must-listen for hosts who are weighing the benefits of listing on more than one vacation rental site!Topics CoveredHow Airbnb is different from HomeAway/VRBO•Superior user experience•Focus on building community•Mutual review of host/guestThe pricing structures of each platform•Airbnb charges 3% fee for each reservation•HomeAway employs a flat rate pricing model ($399/year)The advantages of HomeAway/VRBO•Long-time player in the vacation rental space (ski resorts, beach houses)•More profitable than Airbnb if property located in popular tourist destinationWhy Airbnb is the better choice for new hosts•No risk•3 million Airbnb listings (vs. 1.2 million on HomeAway)The case for sticking with only one platform•Build strong reputation, credibility (Superhost status)•If demand is high enough (80-90% occupancy), one platform is simplerThe argument for diversification•Don’t leave money on the table (higher occupancy)•HomeAway typically generates more bookings for popular vacation destinations•Safer to have several business partners (not beholden to single company)How to avoid the complications of listing on multiple platforms•Update and sync calendars on each platform•If double-booking does occur, assist guest in finding accommodationsThe benefits of creating your own vacation rental website•Functions as online business card•Easier to share URL•Increase in return customers•Ability to post additional content (i.e.: videos)•Builds reputation•Guests book directly and avoid feesBooking.com’s short-term rental component•Richard is testing site, will review on channel•Serious short-term hosts recommend•Guests more transactional (fewer questions, demands)•Interface difficult to navigate•Higher fees force hosts to raise ratesResourcesHomeAwayVRBOKelly Kampen’s Open Letter to AirbnbLodgifyBooking.com Vacation RentalsVacation Rental Website Fee ComparisonConnect with RichardShort Term Rental Secrets YouTube ChannelConnect with JasperEmail: [email protected]: @GetPaidForUrPadInstagram: @GetPaidForYourPad Facebook: www.facebook.com/getpaidforyourpadThis episode is sponsored by Hostfully.com where you can create a custom digital guidebook for your guests! Hosted on Acast. See acast.com/privacy for more information.